Finding 979252 (2023-002)

-
Requirement
I
Questioned Costs
$1
Year
2023
Accepted
2024-06-26

AI Summary

  • Core Issue: The Board failed to follow required procurement procedures for a $572,265 contract, violating both State and Federal regulations.
  • Impacted Requirements: Non-compliance with Uniform Guidance (CFR 200.318, 200.320, 200.324) and Alabama Bid Law (Section 16-13B-1) regarding competitive bidding and cost analysis.
  • Recommended Follow-Up: Ensure adherence to procurement policies and legal requirements to avoid future violations and maintain proper documentation.

Finding Text

The U. S. Code of Federal Regulations Title 2, Part 200.318, of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that non-Federal entities must have and use its own documented procurement procedures which reflect State and local laws and regulations provided that the procurements conform to applicable Federal law and the standards identified within that section. The Code of Alabama 1975, Section 16-13B-1, requires boards of education to competitively bid the labor, services, work, or the purchase of materials, equipment, supplies, or other personal property involving forty thousand dollars ($40,000.00) or more. In addition, the U. S. Code of Federal Regulations Title 2, Part 200.320, of the Uniform Guidance states that non-Federal entities must have and use documented procurement procedures and that when purchases are made that exceed the simplified acquisition threshold defined in the Uniform Guidance formal procurement methods are required. Formal procurement methods include sealed bids, competitive proposals, and, in specific circumstances, noncompetitive proposals. Furthermore, the U. S. Code of Federal Regulations Title 2, Part 200.324, of the Uniform Guidance states that the non-Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the simplified acquisition threshold including contract modifications. The Mobile County Board of School Commissioners (the “Board”) entered into a contract for STEM classroom services for $572,265.00 using COVID-19 Education Stabilization Funds without obtaining bids in accordance with State of Alabama Bid Law or performing a cost or price analysis. The Board did not maintain adequate documentation for utilizing the noncompetitive procurement method. The Board did not follow their procurement policies, State Bid Laws, 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 ensure compliance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.318, CFR 200.320, and CFR 200.324 and the Code of Alabama 1975, 16-13B-1.

Categories

Questioned Costs Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $30.67M
10.553 School Breakfast Program $10.35M
84.367 Improving Teacher Quality State Grants $3.79M
10.555 National School Lunch Program $2.36M
84.424 Student Support and Academic Enrichment Program $2.27M
84.027 Special Education_grants to States $1.87M
84.048 Career and Technical Education -- Basic Grants to States $1.44M
12.006 National Defense Education Program $1.26M
12.U02 Army Rotc $1.02M
84.425 Education Stabilization Fund $981,897
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $693,430
84.287 Twenty-First Century Community Learning Centers $522,173
10.582 Fresh Fruit and Vegetable Program $420,174
84.011 Migrant Education_state Grant Program $214,700
84.365 English Language Acquisition State Grants $190,623
84.173 Special Education_preschool Grants $126,127
84.196 Education for Homeless Children and Youth $94,000
12.U01 Navy Rotc $90,620
11.417 Sea Grant Support $24,766
96.001 Social Security_disability Insurance $6,880
84.144 Migrant Education_coordination Program $3,300