Audit 18564

Condition: The District food service program did not adapt internal controls to monitor costs for their allowability or level of effort in the food service program as being incurred. Criteria: The Uniform Guidance requires internal controls over compliance requirements that are direct and material to federal program. The Child Nutrition Cluster has direct and material compliance requirements of allowability and level of effort. Context: The District food service program refunded the general fund $1,601,930 for prior year costs incurred during the COVID-19 pandemic state of emergency. Cause: During the COVID-19 pandemic state of emergency the District operated an expanded food service program for the community. Due to the extraordinary circumstances and uncertainty of the funding source for costs, the District did not adapt internal controls to monitor costs for their allowability or level of effort in the food service program as being incurred. Effect: There may have been instances of noncompliance with allowability and level of effort of costs incurred that were not prevented or detected by management or employees of the District in their normal course of performing their assigned functions. Instances of noncompliance could have been either including or excluding applicable costs incurred. Questioned Costs: None Recommendation: When the District expands the food service program under any circumstances, the District should adapt internal controls to monitor costs for their allowability and level of effort in the food service program as being incurred. View of Responsible Official and Planned Corrective Action (Unaudited): The District will establish protocol in the food service program for extraordinary and usual circumstances to ensure internal controls are adapted for monitoring costs as being incurred for their allowability and level of effort.

Condition: The District food service program did not adapt internal controls to monitor costs for their allowability or level of effort in the food service program as being incurred. Criteria: The Uniform Guidance requires internal controls over compliance requirements that are direct and material to federal program. The Child Nutrition Cluster has direct and material compliance requirements of allowability and level of effort. Context: The District food service program refunded the general fund $1,601,930 for prior year costs incurred during the COVID-19 pandemic state of emergency. Cause: During the COVID-19 pandemic state of emergency the District operated an expanded food service program for the community. Due to the extraordinary circumstances and uncertainty of the funding source for costs, the District did not adapt internal controls to monitor costs for their allowability or level of effort in the food service program as being incurred. Effect: There may have been instances of noncompliance with allowability and level of effort of costs incurred that were not prevented or detected by management or employees of the District in their normal course of performing their assigned functions. Instances of noncompliance could have been either including or excluding applicable costs incurred. Questioned Costs: None Recommendation: When the District expands the food service program under any circumstances, the District should adapt internal controls to monitor costs for their allowability and level of effort in the food service program as being incurred. View of Responsible Official and Planned Corrective Action (Unaudited): The District will establish protocol in the food service program for extraordinary and usual circumstances to ensure internal controls are adapted for monitoring costs as being incurred for their allowability and level of effort.