Finding Text
CONDITION: During my review of a random sample of thirty-three (33) invoices related to the District’s expenditures of federal funds, I noted that there was not an approved purchase order issued in twenty-six (26) of those instances. CRITERIA: In accordance with the District’s Procurement Policy for Federal Programs (#626.5), the District shall use properly prepared and approved purchase orders for federal purchases. In addition, Section 2 CFR 200.403(g) of the Uniform Guidance requires that all expenditures (costs) must be adequately documented. EFFECT: The District did not comply with the District’s Procurement Policy for Federal Programs (#626.5), or Section 2 CFR 200.403(g) of the Uniform Guidance, regarding the use of purchase orders and the adequate documentation of federal expenditures. QUESTIONED COST: None CAUSE: Management of the District did not properly interpret the provisions of its Procurement Policy for Federal Programs to include the use of purchase orders for federal expenditures in all instances. RECOMMENDATION: I recommend that the District utilize properly prepared and approved purchase orders for all future federal program purchases in compliance with its Procurement Policy for Federal Programs (#626.5) and Section 2 CFR 200.403(g) of the Uniform Guidance. VIEWS OF RESPONSIBLE OFFICIALS: The School District concurs with the above noted finding and addresses this issue in the ‘Corrective Action Plan’ included within this report.