Audit 313799

FY End
2022-06-30
Total Expended
$40.15M
Findings
6
Programs
12
Organization: Escondido Union School District (CA)
Year: 2022 Accepted: 2023-01-12
Auditor: Nigro & Nigro PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
454013 2022-003 Significant Deficiency - P
454014 2022-003 Significant Deficiency - P
454015 2022-003 Significant Deficiency - P
1030455 2022-003 Significant Deficiency - P
1030456 2022-003 Significant Deficiency - P
1030457 2022-003 Significant Deficiency - P

Programs

Contacts

Name Title Type
XLKWJNMHGBR9 Michelle Cagle Auditee
7604322129 Peter Glenn Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The schedule of expenditures of Federal awards includes the Federal grant activity of the District and is presented onthe modified accrual basis of accounting. The information in this schedule is presented in accordance with therequirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedulemay differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Program Identification:Federal Agency: U.S. Department of AgriculturePass through Entity: California Department of EducationProgram Names: Child and Adult Care Food Program (AL No. 10.558)Child Nutrition Cluster:National School Lunch Program (AL No. 10.553, 10.553)Criteria: An interagency cost vending agreement is permitted once approved through CDE so that charges to theChild and Adult Care Food Program (CACFP) from the National School Lunch Program (NSLP) based on approvedrates can be made. The reimbursement rate to CACFP is determined annually based on cost experience. A currentyear rate was based on actual costs.Context: Not ApplicableCondition: Although the use of a vending agreement is allowable, the District did not allocate the cost of theprogram properly.Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated. The amount of the variancewas $4,249,407, which should have been allocated to CACFP.Cause: The District accounted for revenues correctly but did not allocate any of the corresponding expenditures.Recommendation: We recommend that the District review the cost allocations and insure that all expenditures areallocated to the correct programs.Views of Responsible Official: comments, and the following actions will be taken toensure all expenditures are allocated to the correct programs:1. Receive the CACFP check, and book all revenue to CACFP Budget line (5320).2. Generate an invoice based on the IPV tool and rates laid forth in EUSD inter program agreement.3. Create JE debiting CACFP (5320) expense account and crediting NSLP (5310) expense account.These steps will track our funding sources and revenues by program in which it follows
Program Identification:Federal Agency: U.S. Department of AgriculturePass through Entity: California Department of EducationProgram Names: Child and Adult Care Food Program (AL No. 10.558)Child Nutrition Cluster:National School Lunch Program (AL No. 10.553, 10.553)Criteria: An interagency cost vending agreement is permitted once approved through CDE so that charges to theChild and Adult Care Food Program (CACFP) from the National School Lunch Program (NSLP) based on approvedrates can be made. The reimbursement rate to CACFP is determined annually based on cost experience. A currentyear rate was based on actual costs.Context: Not ApplicableCondition: Although the use of a vending agreement is allowable, the District did not allocate the cost of theprogram properly.Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated. The amount of the variancewas $4,249,407, which should have been allocated to CACFP.Cause: The District accounted for revenues correctly but did not allocate any of the corresponding expenditures.Recommendation: We recommend that the District review the cost allocations and insure that all expenditures areallocated to the correct programs.Views of Responsible Official: comments, and the following actions will be taken toensure all expenditures are allocated to the correct programs:1. Receive the CACFP check, and book all revenue to CACFP Budget line (5320).2. Generate an invoice based on the IPV tool and rates laid forth in EUSD inter program agreement.3. Create JE debiting CACFP (5320) expense account and crediting NSLP (5310) expense account.These steps will track our funding sources and revenues by program in which it follows
Program Identification:Federal Agency: U.S. Department of AgriculturePass through Entity: California Department of EducationProgram Names: Child and Adult Care Food Program (AL No. 10.558)Child Nutrition Cluster:National School Lunch Program (AL No. 10.553, 10.553)Criteria: An interagency cost vending agreement is permitted once approved through CDE so that charges to theChild and Adult Care Food Program (CACFP) from the National School Lunch Program (NSLP) based on approvedrates can be made. The reimbursement rate to CACFP is determined annually based on cost experience. A currentyear rate was based on actual costs.Context: Not ApplicableCondition: Although the use of a vending agreement is allowable, the District did not allocate the cost of theprogram properly.Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated. The amount of the variancewas $4,249,407, which should have been allocated to CACFP.Cause: The District accounted for revenues correctly but did not allocate any of the corresponding expenditures.Recommendation: We recommend that the District review the cost allocations and insure that all expenditures areallocated to the correct programs.Views of Responsible Official: comments, and the following actions will be taken toensure all expenditures are allocated to the correct programs:1. Receive the CACFP check, and book all revenue to CACFP Budget line (5320).2. Generate an invoice based on the IPV tool and rates laid forth in EUSD inter program agreement.3. Create JE debiting CACFP (5320) expense account and crediting NSLP (5310) expense account.These steps will track our funding sources and revenues by program in which it follows
Program Identification:Federal Agency: U.S. Department of AgriculturePass through Entity: California Department of EducationProgram Names: Child and Adult Care Food Program (AL No. 10.558)Child Nutrition Cluster:National School Lunch Program (AL No. 10.553, 10.553)Criteria: An interagency cost vending agreement is permitted once approved through CDE so that charges to theChild and Adult Care Food Program (CACFP) from the National School Lunch Program (NSLP) based on approvedrates can be made. The reimbursement rate to CACFP is determined annually based on cost experience. A currentyear rate was based on actual costs.Context: Not ApplicableCondition: Although the use of a vending agreement is allowable, the District did not allocate the cost of theprogram properly.Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated. The amount of the variancewas $4,249,407, which should have been allocated to CACFP.Cause: The District accounted for revenues correctly but did not allocate any of the corresponding expenditures.Recommendation: We recommend that the District review the cost allocations and insure that all expenditures areallocated to the correct programs.Views of Responsible Official: comments, and the following actions will be taken toensure all expenditures are allocated to the correct programs:1. Receive the CACFP check, and book all revenue to CACFP Budget line (5320).2. Generate an invoice based on the IPV tool and rates laid forth in EUSD inter program agreement.3. Create JE debiting CACFP (5320) expense account and crediting NSLP (5310) expense account.These steps will track our funding sources and revenues by program in which it follows
Program Identification:Federal Agency: U.S. Department of AgriculturePass through Entity: California Department of EducationProgram Names: Child and Adult Care Food Program (AL No. 10.558)Child Nutrition Cluster:National School Lunch Program (AL No. 10.553, 10.553)Criteria: An interagency cost vending agreement is permitted once approved through CDE so that charges to theChild and Adult Care Food Program (CACFP) from the National School Lunch Program (NSLP) based on approvedrates can be made. The reimbursement rate to CACFP is determined annually based on cost experience. A currentyear rate was based on actual costs.Context: Not ApplicableCondition: Although the use of a vending agreement is allowable, the District did not allocate the cost of theprogram properly.Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated. The amount of the variancewas $4,249,407, which should have been allocated to CACFP.Cause: The District accounted for revenues correctly but did not allocate any of the corresponding expenditures.Recommendation: We recommend that the District review the cost allocations and insure that all expenditures areallocated to the correct programs.Views of Responsible Official: comments, and the following actions will be taken toensure all expenditures are allocated to the correct programs:1. Receive the CACFP check, and book all revenue to CACFP Budget line (5320).2. Generate an invoice based on the IPV tool and rates laid forth in EUSD inter program agreement.3. Create JE debiting CACFP (5320) expense account and crediting NSLP (5310) expense account.These steps will track our funding sources and revenues by program in which it follows
Program Identification:Federal Agency: U.S. Department of AgriculturePass through Entity: California Department of EducationProgram Names: Child and Adult Care Food Program (AL No. 10.558)Child Nutrition Cluster:National School Lunch Program (AL No. 10.553, 10.553)Criteria: An interagency cost vending agreement is permitted once approved through CDE so that charges to theChild and Adult Care Food Program (CACFP) from the National School Lunch Program (NSLP) based on approvedrates can be made. The reimbursement rate to CACFP is determined annually based on cost experience. A currentyear rate was based on actual costs.Context: Not ApplicableCondition: Although the use of a vending agreement is allowable, the District did not allocate the cost of theprogram properly.Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated. The amount of the variancewas $4,249,407, which should have been allocated to CACFP.Cause: The District accounted for revenues correctly but did not allocate any of the corresponding expenditures.Recommendation: We recommend that the District review the cost allocations and insure that all expenditures areallocated to the correct programs.Views of Responsible Official: comments, and the following actions will be taken toensure all expenditures are allocated to the correct programs:1. Receive the CACFP check, and book all revenue to CACFP Budget line (5320).2. Generate an invoice based on the IPV tool and rates laid forth in EUSD inter program agreement.3. Create JE debiting CACFP (5320) expense account and crediting NSLP (5310) expense account.These steps will track our funding sources and revenues by program in which it follows