{"database": "mytown-research", "table": "audit_findings", "rows": [[46, "wa-sao", "1021379", "2017-001", null, "WA", "Mary Walker School District No 207", "School District", "2063", null, "no_match", "Washington State Auditor's Office", "Financial and Federal audit \u2014 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 \nThe District participates in the School Breakfast, National School Lunch, and \nSummer Food Service programs, and received $248,011 from the programs in \nfiscal year 2017. These programs help fund free and reduced -price meals for \nlow-income students. Families must meet income requirements to be eligible for \nthese programs. \nProcurement \nFederal grant recipients must follow the more restrictive of federal, state or local \nprocurement requirements when purchasing food, equipment, supplies and \nservices with federal funds. The District\u2019s policy requires quotes from three or \nmore qualified sources for purchases be tween $3,500 and $75,000, which is \ncompliant with state law and federal regulations. \n \n \nWashington State Auditor's Office\n___________________________________________________________________________________________________________________\n \n \nSuspension and debarment \nFederal requirements prohibit grant recipients from contracting with or making \nsubawards to parties who have been suspended or debarred from doing business \nwith the federal government. The District must verify that all vendors receiving \n$25,000 or more have not been suspended or debarred. This verification may be \naccomplished by obtaining a written certification from the vendor, or inserting a \nclause in the contract in which the vendor states it is not suspended or debarred. \nAlternatively, the District may review the federal Excluded Parties List (EPLS) \nissued by the U.S. General Services Administration. The District must meet one \nof these requirements before entering into a contract with the vendor. \nDescription of Condition \nProcurement \nAlthough t he Distri ct has policies and procedures in place over procurement, \nthese were not effective in ensuring the District complied with applicable \nprocurement requirements. The District did not ensure it received quotes for all \npurchases between $3,500 and $75,000. \nWe consider this internal control deficiency to be a material weakness. \nThis issue was not reported as a finding in the prior audit. \nSuspension and debarment \nThe Distri ct\u2019s internal controls were not effective to ensure it complied with \napplicable suspension and debarment requirements . The District did not verify \nvendors were not suspended or debarred for purchases exceeding $25,000. \nWe consider this internal control deficiency to be a material weakness. \nThis issue was not reported as a finding in the prior audit. \nCause of Condition \nProcurement \nDistrict personnel were aware of the procurement requirements and District policy, \nbut the policy was not followed. The District asserts this was because of turnover \nin its food services department. \n \n \n \nWashington State Auditor's Office\n___________________________________________________________________________________________________________________\n \n \nSuspension and debarment \nAlthough the District was aware of the requirement, it did not ensure established \ncontrols were followed before making the award, due to a clerical oversight. \nEffect of Condition and Questioned Costs \nProcurement \nThe District paid two vendors $31,817 and $5,216, respectively but did not obtain \nquotes. \nBy not obtaining competing quotes, the District cannot be sure it received the best \npossible price for the purchases funded by the nutrition programs. \nSuspension and debarment \nThe District paid two vendors over $25,000. It did not verify that one of these \ntwo vendors, which it paid $31,817, had not been suspended or debarred. \nPayments on contracts to suspended or debarred vendors are unallowable and \nmight result in the District having to repay program funding to the grantor. \nBecause we were able to verify the vendor had not been suspended or debarred, \nwe are not questioning costs. \nRecommendation s \nProcurement \nWe recommend the District follow its established policy to ensure it meets federal \nrequirements for procuring purchases, and retain documentation to demonstrate \ncompliance. \nSuspension and debarment \nWe recommend the District follow established internal controls to ensure it can \ndemonstrate it verified its vendors are not suspended or debarred from \nparticipating in federal programs before entering into contracts. \nDistrict \u2019s Response \nThe District did not have adequate internal controls to ensure compliance with \nprocurement, and suspension and debarment requirements. \nThe Mary Walker School District has implemented the following procedures \nregarding suspension and debarment and procurement. \n \n \nWashington State Auditor's Office\n___________________________________________________________________________________________________________________\n \n \n\uf0b7 The District will check and retain support of suspension and debarment \nprior to expending $25,000 or more with vendors when using federal funds. \n\uf0b7 The District will obtain quotes and retain support when making small \npurchases with federal funds less than $75,000. \nAuditor\u2019s Remarks \nWe thank the District for its cooperation during the audit and look forward to \nreviewing the District\u2019s corrective action during our next audit. \nApplicable Laws and Regulations \nThe American Institute of Certified Public A ccountants defines significant \ndeficiencies and material weaknesses in its Codification of Statements on Auditing \nStandards, section 935, paragraph 11. \nTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative \nRequirements, Cost Principles, and Audit Requirements for Federal Awards \n(Uniform Guidance), section 303 \u2013 Internal controls, describes the requirements \nfor auditees to maintain internal controls over federal programs and comply with \nfederal program requirements. \nTitle 2 CFR Part 200, Uniform Guidance, section 516 Audit findings, establishes \nreporting requirements for audit findings, and requirements for management of \nFederal awards to non-Federal entities. \nTitle 2 CFR Part 200 , Section 319 \u2013 Competition, establishes all procurement \ntransactions are to be conducted in a manner providing full and open competition, \nand requires non -federal entities to have written procedures for procurement \ntransactions. \nTitle 2 CFR Part 200, Section 320 \u2013 Methods of procurement to be followed , \ndescribes each allowable procurement method. \nTitle 2 CFR Part 180, OMB Guidelines to Agencies on Governmentwide \nDebarment and Susp ension (Nonprocurement) establishes no n-procurement \ndebarment and suspension regulations, implementing Executive Orders 12549 and \n12689. \n \n \n \n \n \nWashington State Auditor's Office\n___________________________________________________________________________________________________________________\n \n \nMARY WALKER SCHOOL DISTRICT NO. 207 \nP.O. Box 159 ~ 500 N. 4th Street \nSpringdale, WA 99173-0159 \nPhone: (509) 258-4534 ~ Fax: (509) 258-4707 \n \nSUPERINTENDENT BOARD OF DIRECTORS PRINCIPAL (6-12) \nRick L. Winters District 1 ~ Jeffrey Canfield ~ Chairperson Matthew L. Cobb \n District 2 ~ James Scott \n District 3 ~ Amy Roy PRINCIPAL (PK-5) \nDIRECTOR OF BUSINESS SERVICES District 4 ~ Justyn Turner & SPECIAL SERVICES DIRECTOR \nSue 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"]], "columns": ["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"], "primary_keys": ["rowid"], "primary_key_values": ["46"], "units": {}, "query_ms": 0.7160489913076162, "source": "MyTown", "source_url": "https://mytown.theboringparts.com", "license": "CC BY 4.0", "license_url": "https://creativecommons.org/licenses/by/4.0/"}