audit_findings: 37

This data as json

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
37 wa-sao 1021321 2017-001   WA Aberdeen School District No 5 School District 1882   no_match Washington State Auditor's Office Financial and Federal audit — Aberdeen School District No 5 Financial and Federal 2017 2016-09-01 2017-08-31 2018-05-17 federal_award_compliance material_weakness 0.0 Questioned Cost Amount: $0 The District did not have adequate internal controls to ensure compliance with the federal Special Education Cluster grant requirements for procurement. CFDA Number and Title: 84.027 – Special Education–Grants to States (IDEA, Part B) 84.173 – Special Education– Preschool Grants (IDEA Preschool) Federal Grantor Name: U.S. Department of Education Federal Award/Contract Number: NA Pass-through Entit Background The District participates in the Individuals with Disabilities Education Act’s Special Education program. The District received $826,202 from the program during fiscal year 2017. Federal regulations require recipients of federal money to establish and follow internal controls to ensure compliance with program requirements. These controls include knowledge of grant requirements and monitoring of program controls. The District must ensure it follows the most restrictive procurement requirements when procuring goods and s ervices. The District procured professional special education services from two contractors at costs of $276,264 and $216,458, respectively. Washington State Auditor's Office ___________________________________________________________________________________________________________________ Description of Condition The District did not maintain support to show it followed the most restrictive procurement requirements in awarding either of the two contracts for professional special education services. We consider this deficiency in internal controls to be a material weakness. This issue was not reported as a finding in the prior audit. Cause of Conditio n The District experienced employee turnover at the procurement position and was unable to find the documentation to show it followed the appropriate procurement method. Effect of Condition and Questioned Costs The District was unable to show it complied w ith federal procurement requirements. The District cannot demonstrate it received the best price for the goods it purchased if supporting documentation is not maintained. We did not question costs because the funds were used for an allowable purpose. Reco mmendation s We recommend the District ensures it follows its policies in applying the most restrictive procurement method when procuring goods and services with federal grant funds. We further recommend it improve internal controls to ensure it maintains documentation supporting its compliance. District’s Response The Aberdeen School District is re-evaluating the process used for purchasing. We are hiring one person specifically to procure bids, services and supplies. One of their primary responsibilities will be to post, track and respond to RFP/RFQ’s. For the 2018-19 school year, an RFP for services used to support Special Education was posted and advertised. The bid sheet will be consulted for hiring additional providers, as needed. The district has also been able to hire several people, as employees of the district, to provide these services starting in the 2018 -19 school year. Washington State Auditor's Office ___________________________________________________________________________________________________________________ Auditor’s Remarks We thank the District for its c ooperation throughout the audit and the steps it is taking to address these concerns. We will review the status of the District’s corrective action during our next audit Applicable Laws and Regulations The American Institute of Certified Public A ccountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, 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 Guida nce), section 516 Audit findings, establishes r eporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303 Internal controls, establishes internal control requirements for management of Federal awards to non -Federal entities. Title 2 CFR Part 200, Uniform Guidance, section 318 General procurement standards, establishes procurement requirements. Title 2 CFR Part 200, Uniform Guidance, section 320 Methods of procurement to be followed, describes the procurement methods to be followed. Washington State Auditor's Office ___________________________________________________________________________________________________________________ https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021321&isFinding=false&sp=false 2026-07-30 13:24:54