Finding Text
2023-002 - Procurement, Suspension, and Debarment - Contract Bidding
Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Procurement, Suspension, and Debarment)
Federal program(s)
U.S. Department of Agriculture -
Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559); Passed through Michigan Department of Education; All project numbers.
Criteria. Recipients of federal awards are required to ensure that federal procurement standards are followed for any purchases over the federal micropurchase threshold. For small purchases (aggregate dollar acquisitions higher than the micropurchase threshold but lower than the simplified acquisition threshold), 2 CFR 200.320 requires recipients to obtain price or rate quotations from an adequate number of qualified sources.
Condition. The District did not obtain price or rate quotations for the purchase of services for one vendor that met the small purchase threshold.
Cause. This condition was the result of an inaccurate understanding of procurement requirements by management.
Effect. As a result of this condition, the District paid a vendor with federal funding that was not procured in accordance with federal regulations.
Questioned Costs. $25,336 of expenditures were questioned as a result of this finding.
Recommendation. We recommend that the District update its procedures to ensure that all services are appropriately procured in accordance with federal and state requirements.
View of Responsible Officials. Management concurs with finding. The District will only allocate costs to the food service program that have been properly bid out and obtain quotes for all services in excess of the Federal micropurchase threshold.
Responsible Official. Director of Business and Finance