Finding 8560 (2023-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
$1
Year
2023
Accepted
2024-01-16

AI Summary

  • Core Issue: The District failed to document the process for determining sole source procurements, violating federal procurement standards.
  • Impacted Requirements: Noncompliance with 2 CFR §200.318 - §200.321, which mandates full documentation for procurement transactions.
  • Recommended Follow-Up: The District should enhance its procurement procedures to ensure all transactions are properly documented for transparency and compliance.

Finding Text

FINDING: 2023-003 – Procurement Federal Agency: U.S. Department of Agriculture & U.S. Department of Education Federal Program: Child Nutrition Cluster & Special Education Cluster CFDA Numbers: 10.555 & 84.027 and 84.173 Pass Through Agency: Minnesota Department of Education Pass Through Number: 01-0276-000-000, H027A220087, H027X210087, H173A220086, and H173X210086 Award Periods: Fiscal year ended June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: 2 CFR §200.318 - §200.321 requires that all procurement transactions be conducted in a manner providing full and open competition consistent with the standards of the section. Procurement by noncompetitive proposals may be utilized if the item is available only from a single source, however efforts must be made and the process fully documented in order to conclude that the use of a sole source procurement is appropriate. Condition: It was noted during procurement testing that the district did not document its process for concluding that procurements met the requirements of being a sole source situation. Questioned Costs: ALN 10.555 - $19,122.61 and ALN 84.027 and 84.173 - $68,100. Context: Of the 13 procurement transactions tested, 2 of them were considered sole source by the District but did not have the proper documentation to support the process used to determine that. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of all procurement transactions. Repeat Finding: Yes. 2022-001. Recommendation: We recommend the District reviews its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Views of Responsible Official: There is no disagreement with the audit finding. The District will implement procedures to document its rationale for the procurement method used.

Corrective Action Plan

2023-003 Material weakness in internal control over compliance and compliance for procurement Recommendation: We recommend that the District review its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will work with their departments utilizing federal dollars to ensure the proper procurement method is utilized for all procurements and that documentation of that process is retained so its clear what considerations were made in the procurement decision. Name(s) of the contact person(s) responsible for corrective action: Paul Bourgeois, Executive Director of Finance and Operations. Planned completion date for corrective action plan: June 30, 2024.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 8561 2023-003
    Material Weakness Repeat
  • 8562 2023-003
    Material Weakness Repeat
  • 8563 2023-003
    Material Weakness Repeat
  • 8564 2023-003
    Material Weakness Repeat
  • 8565 2023-003
    Material Weakness Repeat
  • 8566 2023-003
    Material Weakness Repeat
  • 8567 2023-004
    Material Weakness
  • 8568 2023-004
    Material Weakness
  • 8569 2023-004
    Material Weakness
  • 8570 2023-004
    Material Weakness
  • 8571 2023-004
    Material Weakness
  • 8572 2023-004
    Material Weakness
  • 8573 2023-004
    Material Weakness
  • 585002 2023-003
    Material Weakness Repeat
  • 585003 2023-003
    Material Weakness Repeat
  • 585004 2023-003
    Material Weakness Repeat
  • 585005 2023-003
    Material Weakness Repeat
  • 585006 2023-003
    Material Weakness Repeat
  • 585007 2023-003
    Material Weakness Repeat
  • 585008 2023-003
    Material Weakness Repeat
  • 585009 2023-004
    Material Weakness
  • 585010 2023-004
    Material Weakness
  • 585011 2023-004
    Material Weakness
  • 585012 2023-004
    Material Weakness
  • 585013 2023-004
    Material Weakness
  • 585014 2023-004
    Material Weakness
  • 585015 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $594,135
84.027 Special Education_grants to States $405,435
93.575 Child Care and Development Block Grant $333,585
10.555 National School Lunch Program $282,026
84.010 Title I Grants to Local Educational Agencies $208,701
21.027 Coronavirus State and Local Fiscal Recovery Funds $129,822
84.367 Improving Teacher Quality State Grants $66,032
84.173 Special Education_preschool Grants $40,401
84.048 Career and Technical Education -- Basic Grants to States $37,213
84.365 English Language Acquisition State Grants $36,563
84.181 Special Education-Grants for Infants and Families $24,986
84.424 Student Support and Academic Enrichment Program $9,660
84.425 Education Stabilization Fund $3,616
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $3,576
10.576 Senior Farmers Market Nutrition Program $628