Federal audit findings
Audit report
A state audit has found fault in a Educational Service District 112 program that uses U.S. Department of Agriculture funds to pay for food and snacks served at its child care centers.
“The district cannot ensure it obtained the best services at the most competitive price,” according to the audit, released Monday. “However, the products purchased are allowable under the federal program, and as a result, we are not questioning these costs.”
Vancouver-based ESD 112 provides a variety of services to school districts and also runs the Southwest Washington Child Care Consortium, which has 24 child care centers.
The audit found the Child and Adult Care food program “did not have adequate internal controls to ensure compliance with federal procurement and suspension and debarment requirements,” according to audit findings. The audit period was Sept. 1, 2011 through Aug. 31, 2012.
In fiscal year 2012, the district spent $184,670 for lunches and snacks at its child care centers. It purchased food and snacks costing approximately $168,000 and $44,590 from two vendors, the majority paid by federal funds.
However, federal law and district policy require the district to obtain price or rate quotes from at least three qualified sources for purchases totaling between $40,000 and $75,000. Formal bids are required for purchases exceeding $75,000. ESD 112 did not comply with these requirements for either purchase, according to the findings. It also did not enter into a contract with either vendor.”We got quotes on most of the items, but didn’t take the full step. It’s a formal process as opposed to going out and getting quotes. That’s what we should have done,” said Tim Merlino, chief financial officer for ESD 112. “We’ll be putting out a request for proposal in the next couple of weeks for the food purchase bid that will begin this school year.”The fiscal school year ends Aug. 31. ESD 112 expects to have the bid responses and make a selection sometime in June, Merlino said.
Susan Parrish: 360-735-4515; http://twitter.com/Col_Schools; susan.parrish@columbian.com
