Finding 944 (2022-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-10-30
Audit: 1787
Organization: Kinteel Residential Campus INC (NM)

AI Summary

  • Core Issue: The Campus failed to collect required quotes and verify vendor eligibility, violating both Board policies and federal regulations.
  • Impacted Requirements: Non-compliance with policies for purchases between $10,000 and $100,000 and failure to check the Federal Excluded Parties List for contracts over $25,000.
  • Recommended Follow-up: Implement controls for quote collection and vendor checks, and ensure proper documentation is maintained for all relevant purchases.

Finding Text

CRITERIA The Board adopted policies that require the collection of quotes for purchases of at least $10,000 but no more than $100,000, and formal bid procedures for purchases over $100,000. In addition, the Uniform Guidance requires employees to verify that the vendor, supplier, contractor, subcontractor, provider, or their respective principals (e.g., owners, top management, etc.) with expenditures in excess of $25,000 are not suspended, debarred or otherwise excluded by the Federal Government. The Campus should consult the Federal Excluded Parties List System (EPLS) before awarding funds and print the documentation to maintain in the contract file. This requirement is specified in 2 CFR §180.220. CONDITION The Campus did not follow its Board adopted policies or federal regulations regarding the collection of quotes and suspension and debarment. CAUSE The Campus has not implemented controls to perform the collection of quotes and suspension and debarment checks for vendors. In addition, documentation was not always maintained. EFFECT The Campus was not in compliance with the Board adopted policies. Additionally, the Campus was not compliant with 2 CFR §180.220 and as a result could have entered into a contract with a suspended or debarred party. CONTEXT For two of two purchases reviewed within the Campus’s quote range, quotes were not maintained. In addition, the Campus did not check to see if vendors were suspended or debarred. However, it was determined that vendors were not suspended or debarred. Samples were not intended to be, and were not, statistically valid samples.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 939 2022-001
    Material Weakness Repeat
  • 940 2022-002
    Material Weakness Repeat
  • 941 2022-003
    Material Weakness Repeat
  • 942 2022-004
    Material Weakness Repeat
  • 943 2022-001
    Material Weakness Repeat
  • 945 2022-003
    Material Weakness Repeat
  • 946 2022-004
    Material Weakness Repeat
  • 577381 2022-001
    Material Weakness Repeat
  • 577382 2022-002
    Material Weakness Repeat
  • 577383 2022-003
    Material Weakness Repeat
  • 577384 2022-004
    Material Weakness Repeat
  • 577385 2022-001
    Material Weakness Repeat
  • 577386 2022-002
    Material Weakness Repeat
  • 577387 2022-003
    Material Weakness Repeat
  • 577388 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
15.042 Indian School Equalization Program $892,556
84.425 Education Stabilization Fund $877,414
15.046 Administrative Cost Grants for Indian Schools $207,308
15.047 Indian Education Facilities, Operations, and Maintenance $130,419
15.044 Indian Schools_student Transportation $9,189