Petersburg School DistrictLocal Government

Finding 2021-001 Noncompliance and Material Weakness in Internal Controls OverCompliance ? Procurement and Suspension and DebarmentIdentification of the federal programAwardYearAgency and PassthroughEntity Federal Program TitleFederal AssistanceListing Number Grant Number20212021Department ofAgriculture - passedthrough the State ofAlaska, Department ofEducation and EarlyDevelopmentDepartment ofAgriculture - passedthrough the State ofAlaska, Department ofEducation and EarlyDevelopmentChild Nutrition ClusterChild Nutrition Cluster10.55510.559MA 21.039.01MA 21.039.01Criteria or specific requirement In accordance with 2 CFR 200, the District must follow its ownprocurement policy which conforms to the Uniform Guidancestandards. This requires the District to, among other things, ensurethat it maintains procurement requisitions and supportingdocuments reviewed and approved by the appropriate authority,depending on the amount.Condition There was no evidence to support that the procurement rules andprocedures applicable to the grant were followed for one contractresulting in the District not being in compliance with theprocurement requirements of the program.Cause Internal controls policies were not in place to ensure the Districtfollows its own procurement requirements for the program.Effect or Potential Effect The District was not in compliance with the procurementrequirement for the program. The District did not go out to bid andinstead kept the same vendor from the previous year.Questioned Costs $213,045Context In our testwork for procurement requirements, we noted theDistrict did not follow the procurement policy and did not obtainquotes from other sources for one of the services allocable to theChild Nutrition Cluster Program.Identification as a repeatfindingThis is not a repeat finding.Recommendation We recommend that the controls and processes that have beenestablished be implemented and to ensure the District is followingits procurement policy and meeting the Uniform Guidancecompliance requirements.Views of responsible official Management agrees with the finding. The District will follow theUniform Guidance thresholds that are established for federalprograms, as well as follow the District?s Board policy. Seecorrective action plan.

Finding 2021-002 Significant Deficiency in Internal Controls Over Compliance?EligibilityIdentification of the federal programAwardYearAgency and PassthroughEntity Federal Program TitleFederal AssistanceListing Number Grant Number20212021Department ofAgriculture - passedthrough the State ofAlaska, Departmentof Education andEarly DevelopmentDepartment ofAgriculture - passedthrough the State ofAlaska, Departmentof Education andEarly DevelopmentChild Nutrition ClusterChild Nutrition Cluster10.55510.559MA 21.039.01MA 21.039.01Criteria or specific requirement In accordance with 2 CFR 200, the District must establish internalcontrols to ensure that compliance requirements applicable to theprogram are followed in accordance with Uniform Guidance. Thisrequires the District to have policies in place to ensure eligibilityrequirements are met.Condition The District did not consistently maintain evidence of review ofmeal count sheets for eligibility requirements for the program. Cause Change in personnel and eligibility requirements for the programin 2021 resulted in the District not following its internal controlpolicy.Effect or Potential Effect Lack of proper internal controls related to approval of meal countsheets increases the likelihood of not catching errors in counts oninputs in the count sheet.Questioned Costs NoneContext In our testwork for eligibility requirements, of the 40 samplespulled, we noted 5 instances where the District did not follow theirinternal controls of signing meal count sheets for each meal servedfor the Child Nutrition Cluster Program.Identification as a repeatfindingThis is not a repeat finding.Recommendation We recommend that steps be taken by the District to ensure mealcount sheets are being review and signed to ensure accuratecounts.Views of responsible official Management agrees with the finding. The Director of NutritionServices will review meal counts and then send these forms over tothe Director of Finance for review and verification. See correctiveaction plan.

Finding 2020-001 Noncompliance and Significant Deficiency in Internal Controls Over Compliance ? Procurement and Suspension and Debarment. Agency and Pass-through Entity - Department of Education - passed through the State of Alaska, Department of Education and Early Development Federal Program Title - Special Education Cluster (IDEA) Federal CFDA Number - 84.027/84.173 Criteria or specific requirement - Uniform Guidance has established procurement requirements, which are required to be followed for certain types of costs allocated to federal awards. Condition - The District did not complete all of the procurement requirements during FY20 for one of the services allocable to the Special Education Cluster program. Cause - The District did not follow the procurement policy and did not obtain at least three quotes for a vendor in fiscal year 2019, since the issue was caught in fiscal year 2020, this finding could not be corrected timely. Effect or Potential Effect - Internal controls related to procurement requirements to obtain price quotes were not followed. Questioned Costs - None. Context - In our testwork for procurement requirements, we noted the District did not follow the procurement policy and did not obtain quotes from other sources for one of the services allocable to the Special Education Cluster Program. Identification as a repeat finding - This finding is a repeat finding. Repeated from finding 2019-001 for the year ended June 30, 2019. Recommendation - We recommend that steps be taken by the District to seek out other possible vendors for their service needs if required under the federal procurement requirements. Views of responsible official - Management agrees with the finding. See corrective action plan.

Finding 2019-001 Significant Deficiency in Internal Controls Over Compliance ? Procurement and Suspension and Debarment. Agency and Pass-through Entity Federal Program Title Federal CFDA Number Department of Education - passed through the State of Alaska, Department of Education and Early Development.Federal Program Title Special Education Cluster (IDEA). Federal CFDA Number 84.027/84.173. Criteria or specific requirement Uniform Guidance has established procurement requirements, which are required to be followed for certain types of costs allocated to federal awards. Condition The District did not complete all of the procurement requirements during FY19 for one of the services allocable to the Special Education Cluster program. Cause The District was unaware that there were other vendor options for the service, and thought the vendor they used was the sole vendor in the market for the service procured. Effect Internal controls related to procurement requirements to obtain price quotes were not followed. Questioned Costs None. Context In our testwork for procurement requirements, we noted the District did not follow the procurement policy and did not obtain quotes from a reasonable number of sources for one of the services allocable to the Special Education Cluster Program. Identification as a repeat finding None. Recommendation We recommend that steps be taken by the District to seek out other possible vendors for their service needs if required under the federal procurement requirements.