Excess Food Service Fund Balance (Material Weakness)
Federal Agency: U.S. Department of Agriculture
Pass-through Agency: New Hampshire Department of Education
Cluster/Program: Child Nutrition Cluster
Assistance Listing Numbers: 10.553 & 10.555
Passed-through Identification: N/A
Compliance Requirement: Special Tests and Provisions
Type of Finding:
Internal Control over Compliance – Material Weakness
Material Noncompliance
Criteria or Specific Requirement: Federal regulations 2 CFR 200.303 states, the School District, as a recipient of Federal funds, must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
In addition, under 7 CFR, 210.14(b), Net Cash Resources, “the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service.”
Condition: During review of the food service unassigned fund balance, it was noted that the balance exceeded three months’ average expenditures. The fund balance in the food service fund amounted to $61,039 whereas three months’ average expenditures is $50,130. This generates excess fund balance of $10,909.
Effect: The District is not in compliance with CFR Title 7, 210.14(b) by maintaining fund balance more than three months average expenditures.
Cause: Lack of administrative oversight.
Questioned Costs: $10,909.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the School District take immediate steps to reduce its net cash resources by having an acceptable, approved plan for using surplus fund balance. Since program funds must be used only for program purposes, excess fund balance must be reduced by improving the quality of food served or purchasing needed supplies, services, or equipment unless otherwise directed by the State of New Hampshire Department of Education.
Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.
Meal Reimbursements (Significant Deficiency)
Federal Agency: U.S. Department of Agriculture
Pass-through Agency: New Hampshire Department of Education
Cluster/Program: Child Nutrition Cluster
Assistance Listing Numbers: 10.553 & 10.555
Passed-through Identification: N/A
Compliance Requirement: Reporting
Type of Finding:
Internal Control over Compliance – Significant Deficiency
Criteria or Specific Requirement: Per 7 CFR 210.8, Claims for Reimbursement, “the school food service authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement.”
Condition: While the district was timely with its claims, they did not include all eligible participants. During our review of food service meal claims, it was noted that the school’s point of sale system used for tracking eligible meals, did not agree with the monthly New Hampshire Department of Education claims for 10 out of 12 months (or 83.33%).
Effect: As a result, the district under reported 58 breakfast meals (should have reported 18,953 vs. 18,895), and 102 lunch meals (should have reported 34,681 vs. 34,579). The School District should have received additional funds.
Cause: Inexperienced staff: lack of sufficient training.
Questioned Costs: None.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the School District implement additional procedures over the tracking and submission of monthly meals reimbursements.
Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.
Excess Food Service Fund Balance (Material Weakness)
Federal Agency: U.S. Department of Agriculture
Pass-through Agency: New Hampshire Department of Education
Cluster/Program: Child Nutrition Cluster
Assistance Listing Numbers: 10.553 & 10.555
Passed-through Identification: N/A
Compliance Requirement: Special Tests and Provisions
Type of Finding:
Internal Control over Compliance – Material Weakness
Material Noncompliance
Criteria or Specific Requirement: Federal regulations 2 CFR 200.303 states, the School District, as a recipient of Federal funds, must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
In addition, under 7 CFR, 210.14(b), Net Cash Resources, “the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service.”
Condition: During review of the food service unassigned fund balance, it was noted that the balance exceeded three months’ average expenditures. The fund balance in the food service fund amounted to $61,039 whereas three months’ average expenditures is $50,130. This generates excess fund balance of $10,909.
Effect: The District is not in compliance with CFR Title 7, 210.14(b) by maintaining fund balance more than three months average expenditures.
Cause: Lack of administrative oversight.
Questioned Costs: $10,909.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the School District take immediate steps to reduce its net cash resources by having an acceptable, approved plan for using surplus fund balance. Since program funds must be used only for program purposes, excess fund balance must be reduced by improving the quality of food served or purchasing needed supplies, services, or equipment unless otherwise directed by the State of New Hampshire Department of Education.
Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.
Meal Reimbursements (Significant Deficiency)
Federal Agency: U.S. Department of Agriculture
Pass-through Agency: New Hampshire Department of Education
Cluster/Program: Child Nutrition Cluster
Assistance Listing Numbers: 10.553 & 10.555
Passed-through Identification: N/A
Compliance Requirement: Reporting
Type of Finding:
Internal Control over Compliance – Significant Deficiency
Criteria or Specific Requirement: Per 7 CFR 210.8, Claims for Reimbursement, “the school food service authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement.”
Condition: While the district was timely with its claims, they did not include all eligible participants. During our review of food service meal claims, it was noted that the school’s point of sale system used for tracking eligible meals, did not agree with the monthly New Hampshire Department of Education claims for 10 out of 12 months (or 83.33%).
Effect: As a result, the district under reported 58 breakfast meals (should have reported 18,953 vs. 18,895), and 102 lunch meals (should have reported 34,681 vs. 34,579). The School District should have received additional funds.
Cause: Inexperienced staff: lack of sufficient training.
Questioned Costs: None.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the School District implement additional procedures over the tracking and submission of monthly meals reimbursements.
Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.