Finding Text
Federal Agency: United State Department of Agriculture
Federal Program Name: Child Nutrition Cluster
Assistance Listing Number: 10.553 and 10.555
Pass-Through Agency: Wisconsin Department of Public Instruction
Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547
Award Period: 07/01/2022 – 06/30/2023
Compliance Requirement Affected: Procurement
Type of Finding
Significant deficiency in internal control over compliance
Criteria
2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors.
Condition
During our testing of procurement transactions of the program we noted that 2 of 3 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program.
Questioned Costs
None.
Context
The District's procurement did not conform to Uniform Guidance for 2 of 3 vendors tested in our sample.
Cause
The District did not follow Federal Funds Procurement policy.
Effect
Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services.
Repeat Finding
Yes – 2022-005Recommendation
We recommend the District review procurement policies and establish a procurement process in order to ensure this policy is being followed.
Views of Responsible Officials
There is no disagreement with the audit finding.