Finding Text
U. S. DEPARTMENT OF AGRICULTURE
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555
PASS-THROUGH NUMBER 2105
AUDIT PERIOD - YEAR ENDED JUNE 30, 2023
2023-001. Procurement and Suspension and Debarment
Criteria or specific requirement: Office of Management and Budget (OMB) 2 CFR 200.320 establishes the methods of procurement to be followed by non-federal entities. In compliance with this regulation, Ark. Code Ann. § 6-21-304 requires solicitation of bids on the purchase of commodities with an estimated purchase price equal to or exceeding $23,100.
Condition: A Procurement Review completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) reported that a purchase totaling $71,520 did not solicit bids, as required by Ark. Code Ann. § 6-21-304.
Cause: Lack of internal controls and management oversight over the procurement of supplies and services.
Effect or potential effect: The District expended Child Nutrition program funds of $71,250 without soliciting bids as required by state law for purchases with an estimated purchase price equal to or exceeding $23,100.
Context: Review of Procurement Review completed by the DESE, CNU for the purchases in the 2022-2023 school year.
Identification as a repeat finding: No
Recommendation: The District should implement controls and monitor child nutrition purchases for compliance with applicable procurement requirements.
Views of responsible officials: The district updated and strengthened the procurement plan to follow formal purchase procedures. The updated procurement plan was implemented on 11/14/2023.