audit_findings: 46
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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 |
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| 46 | wa-sao | 1021379 | 2017-001 | WA | Mary Walker School District No 207 | School District | 2063 | no_match | Washington State Auditor's Office | Financial and Federal audit — Mary Walker School District No 207 | Financial and Federal | 2017 | 2016-09-01 | 2017-08-31 | 2018-05-21 | federal_award_compliance | material_weakness | 0.0 | Questioned Cost Amount: $0 | The District did not have adequate internal controls to ensure compliance with requirements regarding procurement, and suspension and debarment. CFDA Number and Title: 10.553 School Breakfast Program 10.555 National school Lunch Program 10.559 Summer Food Service Program Federal Grantor Name: U.S. Department of Agriculture Federal Award/Contract Number: NA Pass-through Entity Name: Office of Super | Background The District participates in the School Breakfast, National School Lunch, and Summer Food Service programs, and received $248,011 from the programs in fiscal year 2017. These programs help fund free and reduced -price meals for low-income students. Families must meet income requirements to be eligible for these programs. Procurement Federal grant recipients must follow the more restrictive of federal, state or local procurement requirements when purchasing food, equipment, supplies and services with federal funds. The District’s policy requires quotes from three or more qualified sources for purchases be tween $3,500 and $75,000, which is compliant with state law and federal regulations. Washington State Auditor's Office ___________________________________________________________________________________________________________________ Suspension and debarment Federal requirements prohibit grant recipients from contracting with or making subawards to parties who have been suspended or debarred from doing business with the federal government. The District must verify that all vendors receiving $25,000 or more 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. Description of Condition Procurement Although t he Distri ct has policies and procedures in place over procurement, these were not effective in ensuring the District complied with applicable procurement requirements. The District did not ensure it received quotes for all purchases between $3,500 and $75,000. We consider this internal control deficiency to be a material weakness. This issue was not reported as a finding in the prior audit. Suspension and debarment The Distri ct’s internal controls were not effective to ensure it complied with applicable suspension and debarment requirements . The District did not verify vendors were not suspended or debarred for purchases exceeding $25,000. 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 Procurement District personnel were aware of the procurement requirements and District policy, but the policy was not followed. The District asserts this was because of turnover in its food services department. Washington State Auditor's Office ___________________________________________________________________________________________________________________ Suspension and debarment Although the District was aware of the requirement, it did not ensure established controls were followed before making the award, due to a clerical oversight. Effect of Condition and Questioned Costs Procurement The District paid two vendors $31,817 and $5,216, respectively but did not obtain quotes. By not obtaining competing quotes, the District cannot be sure it received the best possible price for the purchases funded by the nutrition programs. Suspension and debarment The District paid two vendors over $25,000. It did not verify that one of these two vendors, which it paid $31,817, had not been suspended or debarred. Payments on contracts to suspended or debarred vendors are unallowable and might result in the District having to repay program funding to the grantor. Because we were able to verify the vendor had not been suspended or debarred, we are not questioning costs. Recommendation s Procurement We recommend the District follow its established policy to ensure it meets federal requirements for procuring purchases, and retain documentation to demonstrate compliance. Suspension and debarment We recommend the District follow established internal controls to ensure it can demonstrate it verified its vendors are not suspended or debarred from participating in federal programs before entering into contracts. District ’s Response The District did not have adequate internal controls to ensure compliance with procurement, and suspension and debarment requirements. The Mary Walker School District has implemented the following procedures regarding suspension and debarment and procurement. Washington State Auditor's Office ___________________________________________________________________________________________________________________ The District will check and retain support of suspension and debarment prior to expending $25,000 or more with vendors when using federal funds. The District will obtain quotes and retain support when making small purchases with federal funds less than $75,000. Auditor’s Remarks We thank the District for its cooperation during the audit and look forward to reviewing 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, 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 303 – Internal controls, describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. Title 2 CFR Part 200, Uniform Guidance, section 516 Audit findings, establishes reporting requirements for audit findings, and requirements for management of Federal awards to non-Federal entities. Title 2 CFR Part 200 , Section 319 – Competition, establishes all procurement transactions are to be conducted in a manner providing full and open competition, and requires non -federal entities to have written procedures for procurement transactions. Title 2 CFR Part 200, Section 320 – Methods of procurement to be followed , describes each allowable procurement method. Title 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide Debarment and Susp ension (Nonprocurement) establishes no n-procurement debarment and suspension regulations, implementing Executive Orders 12549 and 12689. Washington State Auditor's Office ___________________________________________________________________________________________________________________ MARY WALKER SCHOOL DISTRICT NO. 207 P.O. Box 159 ~ 500 N. 4th Street Springdale, WA 99173-0159 Phone: (509) 258-4534 ~ Fax: (509) 258-4707 SUPERINTENDENT BOARD OF DIRECTORS PRINCIPAL (6-12) Rick L. Winters District 1 ~ Jeffrey Canfield ~ Chairperson Matthew L. Cobb District 2 ~ James Scott District 3 ~ Amy Roy PRINCIPAL (PK-5) DIRECTOR OF BUSINESS SERVICES District 4 ~ Justyn Turner & SPECIAL SERVICES DIRECTOR Sue McIsaac District 5 ~ Diana Beckman ~ Vice-Chairperson Edwina D. Hargrave | https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021379&isFinding=false&sp=false | 2026-07-30 13:24:54 |