audit_findings: 28

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rowid source report_number finding_number muni_id state entity_name entity_type entity_ext_id place_geoid match_method auditor report_title audit_type fiscal_year period_start period_end published_date finding_category severity questioned_cost cost_basis finding_title finding_text report_url fetched_at
28 wa-sao 1021280 2017-001   WA Eastmont School District No 206 School District 1857   no_match Washington State Auditor's Office Financial and Federal audit — Eastmont School District No 206 Financial and Federal 2017 2016-09-01 2017-08-31 2018-05-07 federal_award_compliance material_weakness 0.0 Questioned Cost Amount: $0 The District did not have adequate internal controls to comply with federal suspension and debarment requirements. CFDA Number and Title: 84.010 – Title I Grants to Local Educational Agencies Federal Grantor Name: U.S. Department of Education Federal Award/Contract Number: NA Pass-through Entity Name: Office of Superintendent of Public Instruction Pass-through Award/Contract Number: 09-206 Questio Background During fiscal year 2017, the District spent $1,270,741 in Title I grant funds. This program’s objective is to improve the teaching and learning of children who are at risk of not meeting challenging academic standards and who reside in areas with high concentrations of children from low-income families. The District used these funds to improve teaching and learning at seven school buildings. Federal requirements prohibi t grant recipients from contracting with or making subawards to parties who have been suspended or debarred from doing business with the federal government. To comply with this requirement, the District must verify that vendors receiving $25,000 or more in federal awards have not been suspended or debarred. This verification may be accomplished by obtaining a written certification from the vendor or inserting a clause in the contract in which the vendor states it is not suspended or debarred. Alternatively, the District may review the federal Excluded Parties List (EPLS) issued by the U.S. General Services Administration. The District must meet one of these requirements before entering into a contract with the vendor. Washington State Auditor's Office ___________________________________________________________________________________________________________________ Description of Condition The District has a process in place, but it was not effective to ensure compliance. The District did not obtain a written certification or review EPLS to verify two vendors it paid $61,849 were not suspended or debarred before awarding the contracts. We consider this internal control deficiency to be a material weakness. This issue was not reported as a finding in the prior audit. Cause of Condition The District does not typically use Title I funds to pay vendors for goods or services over $25,000. Therefore, the District’s standard process was not followed. Effect of Condition and Questioned Costs Any payments of program funds to a vendor that has been suspended or debarred would be unallowable and subject to recovery by the grantor. We were able to v erify neither of the vendors had been suspended or debarred. Therefore, we are not questioning the related costs. Recommendation We recommend the District follow established internal controls to ensure vendors are not suspended or debarred from participati ng in federal programs before entering into contracts. District’s Response The District concurs with the auditor’s finding. The District is aware of the requirement that certification be obtained from vendors in order to ensure that the vendor is not suspended or debarred from doing business with the Federal government. In the instances noted by the auditor, staff were not aw are that the requirement related to cumulative totals. The District has implemented changes to procedures that require review of the Federal Excluded Parties List (EPLS) for any purchase that is using state or federal supplemental program dollars. The documentation of this review will be attached to the internal document used to request spending of these program dollars. We are confident that with this improvement in our process that the required documentation will be obtained prior to a payment of any amount being issued to a vendor. Washington State Auditor's Office ___________________________________________________________________________________________________________________ Auditor’s Remarks We appreciate the District’s commitment to resolve this finding and thank the District for its cooperation and assistance during the audit. We will review the corrective action taken during our next audit. Applicable Laws and Regulations The American Institute of Certified Public Accountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, paragraph 11. Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), section 200.303 Internal controls, establishes internal control requirements for management of Federal awards to non-Federal entities. Title 2 CFR Part 200, Uniform Guidance, section 200.516 Audit findings, establishes reporting requirements for audit findings, and requirements for management of Federal awards to non-Federal entities. Title 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement) establishes non -procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689. Washington State Auditor's Office ___________________________________________________________________________________________________________________ SCHEDULE OF FEDERAL AWARD FINDINGS AND QUESTIONED CO STS Eastmont School District No. 206 Douglas County September 1, 2016 through August 31, 2017 https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021280&isFinding=false&sp=false 2026-07-30 13:24:54