Audit 21727

FY End
2022-06-30
Total Expended
$15.53M
Findings
6
Programs
16
Organization: Los Lunas Schools (NM)
Year: 2022 Accepted: 2023-01-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
21364 2022-001 Significant Deficiency - L
21365 2022-001 Significant Deficiency - L
21366 2022-001 Significant Deficiency - L
597806 2022-001 Significant Deficiency - L
597807 2022-001 Significant Deficiency - L
597808 2022-001 Significant Deficiency - L

Contacts

Name Title Type
C3K9JREQYGJ4 Sandra Traczyk Auditee
5058668223 Scott Eliason Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of Los Lunas Schools (the Schools) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Schools, it is not intended to and does not present the financial position or changes in financial position of the Schools. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is the same basis as was used to prepare the fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

2022-001 CHILD NUTRITION REPORTING CONTROLS Federal Program Information Funding agency: U.S. Department of Agriculture, Passed through the New Mexico Department of Public Education Title: National School Lunch Program and School Breakfast Program ALN Number: 10.553 and 10.555 Award Year: 2022 Question Costs: None Type of Finding: Significant Deficiency Condition We tested 25 meal count tally sheets to review for compliance and controls over compliance with reporting requirements. On 23 out of the 25 tested tally sheets, at 13 out of 14 unique school sites in the sample, did not have sufficient evidence of review in accordance with federal guidelines. Criteria The OMB Compliance Supplement 2 CFR 200 section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Further guidance over food service counts, reconciliations, and approvals are found in the PSAB Supplement 17 of the Manual of Procedures outlined by the New Mexico Department of Public Education. Effect The Schools was not in compliance with its policies of reviewing the meal count tally sheets. There is a lack of accountability over meal counts performed. Cause New procedures had previously been implemented to resolve this finding during fiscal year 2020, but changes to procedures occurred as a result of the Schools change to participate in the Community Eligibility Program (CEP) in fiscal year 2022. Cash was no longer collected from students under this program, so simple tally sheets are now used at the ?point of sale?. There was a lack of standardization and oversight in implementing this transition, as school sites began to utilize their own newly created forms, which no longer contained required signatures. Recommendation We recommend the Schools utilize a standardized tally sheet form that requires review and approval by two different individuals, for each of breakfast and lunch counts. This form should be sent to the state oversight agency for approval of this new system of controls.
2022-001 CHILD NUTRITION REPORTING CONTROLS Federal Program Information Funding agency: U.S. Department of Agriculture, Passed through the New Mexico Department of Public Education Title: National School Lunch Program and School Breakfast Program ALN Number: 10.553 and 10.555 Award Year: 2022 Question Costs: None Type of Finding: Significant Deficiency Condition We tested 25 meal count tally sheets to review for compliance and controls over compliance with reporting requirements. On 23 out of the 25 tested tally sheets, at 13 out of 14 unique school sites in the sample, did not have sufficient evidence of review in accordance with federal guidelines. Criteria The OMB Compliance Supplement 2 CFR 200 section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Further guidance over food service counts, reconciliations, and approvals are found in the PSAB Supplement 17 of the Manual of Procedures outlined by the New Mexico Department of Public Education. Effect The Schools was not in compliance with its policies of reviewing the meal count tally sheets. There is a lack of accountability over meal counts performed. Cause New procedures had previously been implemented to resolve this finding during fiscal year 2020, but changes to procedures occurred as a result of the Schools change to participate in the Community Eligibility Program (CEP) in fiscal year 2022. Cash was no longer collected from students under this program, so simple tally sheets are now used at the ?point of sale?. There was a lack of standardization and oversight in implementing this transition, as school sites began to utilize their own newly created forms, which no longer contained required signatures. Recommendation We recommend the Schools utilize a standardized tally sheet form that requires review and approval by two different individuals, for each of breakfast and lunch counts. This form should be sent to the state oversight agency for approval of this new system of controls.
2022-001 CHILD NUTRITION REPORTING CONTROLS Federal Program Information Funding agency: U.S. Department of Agriculture, Passed through the New Mexico Department of Public Education Title: National School Lunch Program and School Breakfast Program ALN Number: 10.553 and 10.555 Award Year: 2022 Question Costs: None Type of Finding: Significant Deficiency Condition We tested 25 meal count tally sheets to review for compliance and controls over compliance with reporting requirements. On 23 out of the 25 tested tally sheets, at 13 out of 14 unique school sites in the sample, did not have sufficient evidence of review in accordance with federal guidelines. Criteria The OMB Compliance Supplement 2 CFR 200 section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Further guidance over food service counts, reconciliations, and approvals are found in the PSAB Supplement 17 of the Manual of Procedures outlined by the New Mexico Department of Public Education. Effect The Schools was not in compliance with its policies of reviewing the meal count tally sheets. There is a lack of accountability over meal counts performed. Cause New procedures had previously been implemented to resolve this finding during fiscal year 2020, but changes to procedures occurred as a result of the Schools change to participate in the Community Eligibility Program (CEP) in fiscal year 2022. Cash was no longer collected from students under this program, so simple tally sheets are now used at the ?point of sale?. There was a lack of standardization and oversight in implementing this transition, as school sites began to utilize their own newly created forms, which no longer contained required signatures. Recommendation We recommend the Schools utilize a standardized tally sheet form that requires review and approval by two different individuals, for each of breakfast and lunch counts. This form should be sent to the state oversight agency for approval of this new system of controls.
2022-001 CHILD NUTRITION REPORTING CONTROLS Federal Program Information Funding agency: U.S. Department of Agriculture, Passed through the New Mexico Department of Public Education Title: National School Lunch Program and School Breakfast Program ALN Number: 10.553 and 10.555 Award Year: 2022 Question Costs: None Type of Finding: Significant Deficiency Condition We tested 25 meal count tally sheets to review for compliance and controls over compliance with reporting requirements. On 23 out of the 25 tested tally sheets, at 13 out of 14 unique school sites in the sample, did not have sufficient evidence of review in accordance with federal guidelines. Criteria The OMB Compliance Supplement 2 CFR 200 section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Further guidance over food service counts, reconciliations, and approvals are found in the PSAB Supplement 17 of the Manual of Procedures outlined by the New Mexico Department of Public Education. Effect The Schools was not in compliance with its policies of reviewing the meal count tally sheets. There is a lack of accountability over meal counts performed. Cause New procedures had previously been implemented to resolve this finding during fiscal year 2020, but changes to procedures occurred as a result of the Schools change to participate in the Community Eligibility Program (CEP) in fiscal year 2022. Cash was no longer collected from students under this program, so simple tally sheets are now used at the ?point of sale?. There was a lack of standardization and oversight in implementing this transition, as school sites began to utilize their own newly created forms, which no longer contained required signatures. Recommendation We recommend the Schools utilize a standardized tally sheet form that requires review and approval by two different individuals, for each of breakfast and lunch counts. This form should be sent to the state oversight agency for approval of this new system of controls.
2022-001 CHILD NUTRITION REPORTING CONTROLS Federal Program Information Funding agency: U.S. Department of Agriculture, Passed through the New Mexico Department of Public Education Title: National School Lunch Program and School Breakfast Program ALN Number: 10.553 and 10.555 Award Year: 2022 Question Costs: None Type of Finding: Significant Deficiency Condition We tested 25 meal count tally sheets to review for compliance and controls over compliance with reporting requirements. On 23 out of the 25 tested tally sheets, at 13 out of 14 unique school sites in the sample, did not have sufficient evidence of review in accordance with federal guidelines. Criteria The OMB Compliance Supplement 2 CFR 200 section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Further guidance over food service counts, reconciliations, and approvals are found in the PSAB Supplement 17 of the Manual of Procedures outlined by the New Mexico Department of Public Education. Effect The Schools was not in compliance with its policies of reviewing the meal count tally sheets. There is a lack of accountability over meal counts performed. Cause New procedures had previously been implemented to resolve this finding during fiscal year 2020, but changes to procedures occurred as a result of the Schools change to participate in the Community Eligibility Program (CEP) in fiscal year 2022. Cash was no longer collected from students under this program, so simple tally sheets are now used at the ?point of sale?. There was a lack of standardization and oversight in implementing this transition, as school sites began to utilize their own newly created forms, which no longer contained required signatures. Recommendation We recommend the Schools utilize a standardized tally sheet form that requires review and approval by two different individuals, for each of breakfast and lunch counts. This form should be sent to the state oversight agency for approval of this new system of controls.
2022-001 CHILD NUTRITION REPORTING CONTROLS Federal Program Information Funding agency: U.S. Department of Agriculture, Passed through the New Mexico Department of Public Education Title: National School Lunch Program and School Breakfast Program ALN Number: 10.553 and 10.555 Award Year: 2022 Question Costs: None Type of Finding: Significant Deficiency Condition We tested 25 meal count tally sheets to review for compliance and controls over compliance with reporting requirements. On 23 out of the 25 tested tally sheets, at 13 out of 14 unique school sites in the sample, did not have sufficient evidence of review in accordance with federal guidelines. Criteria The OMB Compliance Supplement 2 CFR 200 section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Further guidance over food service counts, reconciliations, and approvals are found in the PSAB Supplement 17 of the Manual of Procedures outlined by the New Mexico Department of Public Education. Effect The Schools was not in compliance with its policies of reviewing the meal count tally sheets. There is a lack of accountability over meal counts performed. Cause New procedures had previously been implemented to resolve this finding during fiscal year 2020, but changes to procedures occurred as a result of the Schools change to participate in the Community Eligibility Program (CEP) in fiscal year 2022. Cash was no longer collected from students under this program, so simple tally sheets are now used at the ?point of sale?. There was a lack of standardization and oversight in implementing this transition, as school sites began to utilize their own newly created forms, which no longer contained required signatures. Recommendation We recommend the Schools utilize a standardized tally sheet form that requires review and approval by two different individuals, for each of breakfast and lunch counts. This form should be sent to the state oversight agency for approval of this new system of controls.