Finding Text
CONDITION: During a review of three (3) selected procurement contracts entered into by the Northern Cambria School District - Advanced Office Systems, Inc. for the purchase of copier equipment, Acorns to Oaks Consulting, LLC for professional emotional support services, and Eber HVAC, Inc. for the RTU Replacement Project - it was noted that the School District was unable to provide purchase orders for these specific goods and services. CRITERIA: In accordance with Section 2 CFR 200.403(g) of the Uniform Guidance, and the School District’s Board policy 626 for procurement – federal programs, costs must be adequately documented, and contain a purchase order approved by an administrator or supervisor submitted to the Business Manager and Superintendent. CAUSE: School District personnel erroneously assumed that in the selected instances tested, involving either a sole source provider or competitive bidding process, that a purchase order was not required. EFFECT: The Northern Cambria School District did not comply with the requirements of Section 2 CFR 200.403(g) of the Uniform Guidance, and the School District’s Board policy 626 for procurement – federal programs for ensuring that purchase orders are used. QUESTIONED COST: $1,535,841 (Eber HVAC-$1,475,100), (Advanced Office Systems-$26,851), (Acorns to Oaks Consulting, LLC-$33,890). RECOMMENDATION: I am recommending that the management of the School District comply with the requirements of Section 2 CFR 200.403(g) of the Uniform Guidance, and the School District’s Board policy 626 for procurement – federal programs for ensuring that purchase orders are used. VIEWS OF RESPONSIBLE OFFICIALS: Management of the School District has reviewed the above noted finding and recommendation and have developed a corresponding ‘Corrective Action Plan’ to address this matter (See Corrective Action Plan).