Finding 978286 (2023-001)

Significant Deficiency
Requirement
I
Questioned Costs
$1
Year
2023
Accepted
2024-06-25

AI Summary

  • Core Issue: The Board did not obtain required price or rate quotations for a $96,660 contract for mobile STEM classroom services, violating procurement policies.
  • Impacted Requirements: The Board failed to comply with both the Uniform Guidance and their own Board Policy 3.20.5 regarding procurement procedures.
  • Recommended Follow-Up: Ensure future contracts within the small purchase threshold adhere to the procurement requirements outlined in the U.S. Code of Federal Regulations Title 2, Part 200.320.

Finding Text

The U. S. Code of Federal Regulations Title 2, Part 200.320, of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that non-Federal entities must have and use documented procurement procedures. If purchases are made that fall within the small purchase thresholds defined in the Uniform Guidance, price or rate quotations much be obtained from an adequate number of qualified sources. Board Policy 3.20.5 states that procurement transactions for federal programs that are not subject to the state procurement laws but exceed the aggregate amount of the federal micro-purchase threshold, will be obtained by utilizing price or rate quotes from two or more qualified sources. The Lawrence County Board of Education (the “Board”) entered into a contract for mobile STEM classroom services totaling $96,660.00 that was within the Uniform Guidance small purchase threshold without obtaining price or rate quotations. The Board did not follow their procurement policies or the Uniform Guidance regarding this purchase. As a result, the Board did not comply with the Uniform Guidance procurement requirements. Recommendation: The Board should comply with the U. S. Code of Federal Regulations Title 2, Part 200.320 of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) when entering into contracts that are within the small purchase threshold.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

  • 401843 2023-001
    Significant Deficiency
  • 401844 2023-001
    Significant Deficiency
  • 401845 2023-001
    Significant Deficiency
  • 401846 2023-001
    Significant Deficiency
  • 978285 2023-001
    Significant Deficiency
  • 978287 2023-001
    Significant Deficiency
  • 978288 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $2.24M
10.553 School Breakfast Program $1.11M
84.367 Improving Teacher Quality State Grants $305,072
84.060 Indian Education_grants to Local Educational Agencies $274,437
10.555 National School Lunch Program $208,807
84.424 Student Support and Academic Enrichment Program $172,302
84.358 Rural Education $136,491
84.027 Special Education_grants to States $134,747
84.048 Career and Technical Education -- Basic Grants to States $99,357
84.425 Education Stabilization Fund $96,660
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $89,360
10.665 Schools and Roads - Grants to States $77,710
12.U01 Rotc $45,086
84.196 Education for Homeless Children and Youth $30,000
10.579 Child Nutrition Discretionary Grants Limited Availability $23,979
84.173 Special Education_preschool Grants $22,935
10.582 Fresh Fruit and Vegetable Program $9,956
96.001 Social Security_disability Insurance $760