Epic Charter SchoolsLocal Government

Finding 2022-004 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to January 1, 2022, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: As a result, Epic lacked the appropriate procedures from July 1, 2021 through December 31, 2021 and did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management implements the formal procurement policy that meets the requirements outlined by the Uniform Guidance throughout the entirety of the fiscal year. Additionally, we recommend purchase order (PO) approvals are decentralized, allowing for budget owners to be the first line of defense for obtaining the necessary quotes when requesting to contract with a vendor and that these quotes are attached to the PO for final approvals. Management Response: We understand the causes and findings as outlined above. Epic will continue to follow the policy put in place in January 2022, which is consistent with requirements outlined by the Uniformed Guidance.

Finding 2022-004 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to January 1, 2022, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: As a result, Epic lacked the appropriate procedures from July 1, 2021 through December 31, 2021 and did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management implements the formal procurement policy that meets the requirements outlined by the Uniform Guidance throughout the entirety of the fiscal year. Additionally, we recommend purchase order (PO) approvals are decentralized, allowing for budget owners to be the first line of defense for obtaining the necessary quotes when requesting to contract with a vendor and that these quotes are attached to the PO for final approvals. Management Response: We understand the causes and findings as outlined above. Epic will continue to follow the policy put in place in January 2022, which is consistent with requirements outlined by the Uniformed Guidance.

Finding 2022-004 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to January 1, 2022, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: As a result, Epic lacked the appropriate procedures from July 1, 2021 through December 31, 2021 and did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management implements the formal procurement policy that meets the requirements outlined by the Uniform Guidance throughout the entirety of the fiscal year. Additionally, we recommend purchase order (PO) approvals are decentralized, allowing for budget owners to be the first line of defense for obtaining the necessary quotes when requesting to contract with a vendor and that these quotes are attached to the PO for final approvals. Management Response: We understand the causes and findings as outlined above. Epic will continue to follow the policy put in place in January 2022, which is consistent with requirements outlined by the Uniformed Guidance.

Finding 2022-004 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to January 1, 2022, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: As a result, Epic lacked the appropriate procedures from July 1, 2021 through December 31, 2021 and did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management implements the formal procurement policy that meets the requirements outlined by the Uniform Guidance throughout the entirety of the fiscal year. Additionally, we recommend purchase order (PO) approvals are decentralized, allowing for budget owners to be the first line of defense for obtaining the necessary quotes when requesting to contract with a vendor and that these quotes are attached to the PO for final approvals. Management Response: We understand the causes and findings as outlined above. Epic will continue to follow the policy put in place in January 2022, which is consistent with requirements outlined by the Uniformed Guidance.

Finding 2021-008 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to July 1, 2021, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: Epic had an expenditure exceeding $25,000 that did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management establish a formal procurement policy that meets the requirements outlined by the Uniform Guidance. Management Response: We agree with the causes and findings as outlined above. A procurement procedure that meets the requirements outlined by the Uniform Guidance has been in effect since January 2022.

Finding 2021-008 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to July 1, 2021, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: Epic had an expenditure exceeding $25,000 that did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management establish a formal procurement policy that meets the requirements outlined by the Uniform Guidance.Management Response: We agree with the causes and findings as outlined above. A procurement procedure that meets the requirements outlined by the Uniform Guidance has been in effect since January 2022.

Finding 2021-008 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to July 1, 2021, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: Epic had an expenditure exceeding $25,000 that did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management establish a formal procurement policy that meets the requirements outlined by the Uniform Guidance. Management Response: We agree with the causes and findings as outlined above. A procurement procedure that meets the requirements outlined by the Uniform Guidance has been in effect since January 2022.

Finding 2021-008 ? Proper procurement for contracts Criteria: From the Uniform Guidance sections 200.31-200.326, there are five general procurement standards that cover the purchase of property, supplies and services under the Uniform Guidance: 1. The organization must maintain written policies and procedures for procurement covering the methods available under these regulations. 2. Costs must be reasonable and necessary 3. Must provide for full and open competition 4. The organization must maintain written standards of conduct covering internal and external conflicts of interest 5. The organization must maintain documentation addressing cost and price analysis and vendor selections where applicable based on the method of procurement used. Condition: Prior to July 1, 2021, management did not have a formal bid policy in place for contracts that required formal bids that were consistent with requirements outlined by the Uniform Guidance. Cause and Effect: Epic had an expenditure exceeding $25,000 that did not follow the specified process where an open competition occurred, a price analysis was performed, and there was no bid process was followed. Recommendation: We recommend that management establish a formal procurement policy that meets the requirements outlined by the Uniform Guidance.Management Response: We agree with the causes and findings as outlined above. A procurement procedure that meets the requirements outlined by the Uniform Guidance has been in effect since January 2022.