Finding Text
Finding 2023-001 - Procurement
Federal Agency: U.S. Department of Agriculture
Pass-through Agency: Pennsylvania Department of Education
Assistance Listing Number: Child Nutrition Cluster – 10.553/10.555
Criteria: The Uniform Guidance requires that non-federal entities must have and use documented procurement procedures consistent with laws and regulations and the standards for the acquisition of property or services under a federal award or subaward in accordance with 2 CFR 200.318. Additionally, the non-federal entity is required to follow formal procurement methods when the value of the procurement for property or service under a federal financial assistance award exceeds the simplified acquisition threshold in accordance with 2 CFR 200.320. Furthermore, the District must adhere to the Pennsylvania Public School Code 24 P.S. 1-10, 7-751 and 8-807.1 when procuring goods and services to remain in compliance with commonwealth procurement requirements.
Condition: The District did not follow the appropriate procedures to comply with the procurement requirements as established by Uniform Guidance and Pennsylvania Public School Code.
Cause and Effect: The District has utilized the same vendor for several years without obtaining annual bids. It did not follow its procurement policy and ultimately did not comply with the standard of the Uniform Guidance and Pennsylvania Public School Code.
Questioned Cost: None
Context: During testing, it was noted that the District had purchased bakery items from a vendor without following its procurement policy. This was an isolated instance within the scope of the tested population.
Identification of Repeat Finding: Yes
Recommendation: We recommend that the District ensure it complies with its written procurement policy. The District should document its process and how it complies with the procurement standards.
Views of Responsible Officials: The finding was initially identified during the conduct of the audit of the fiscal year ended June 30, 2022, which occurred in October 2022. The District was not able to remedy this finding for the fiscal year ended June 30, 2023 as the contract that the District had with the vendor was for multiple years. The District will establish processes to ensure that the procurement policy is followed when applicable and necessary.