Audit 317789

FY End
2022-06-30
Total Expended
$1.30M
Findings
12
Programs
8
Year: 2022 Accepted: 2024-08-23

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
484945 2022-009 Material Weakness Yes P
484946 2022-010 Material Weakness - B
484947 2022-011 Material Weakness - L
484948 2022-009 Material Weakness Yes P
484949 2022-010 Material Weakness - B
484950 2022-011 Material Weakness - L
1061387 2022-009 Material Weakness Yes P
1061388 2022-010 Material Weakness - B
1061389 2022-011 Material Weakness - L
1061390 2022-009 Material Weakness Yes P
1061391 2022-010 Material Weakness - B
1061392 2022-011 Material Weakness - L

Programs

Contacts

Name Title Type
EX3WTGMNCJ45 Holly Fischer Auditee
6419232718 Steve Gerdes Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported in the Schedule are reported on the accrual or modified accrual basis of accounting. 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 minimus cost rate.

Finding Details

Segregation of Duties - The Garner-Hayfield-Ventura Community School District (Distric) did not properly segregate custody, recordkeeping and reconciling functions, including those related to federal programs. See 2022-001
Food Service Contract - Criteria: Payments to vendors are required to be supported by the contract and in accordance with allowable cost principles. Condition: The District has a contract with a food service management company to operate its food service program. Our review of the procedures noted the following: * - There does not appear to be procedures in place to ensure the propriety of the labor amount reimbursed to the food service management company by the District. * - The District paid the food service management company from invoices which did not methematically compute by several thousand dollars. * - The District does not reconcile the dollar equivalent of the number of meals paid to the food service management company with the number of meals served based on the District's records. Cause: The District has not implemented procedures to ensure the contract and payment terms with the food service management company are complied with. Effect: The lack of established polcies and procedures resulted in the issues as noted above. Recommendation: The District should implement procedures to ensure the contract and payment terms with the food service management company are complied with. Response and corrective action planned: We have revamped our polices and procedures in relation to the above issues. Conclusion: Response acknowledged.
Meal Claims - Criteria: The District does not have a process to ensure compliance with reporting requirements within the federal program. Criteria: The April 2022 Office of Management and Budget Compliance Supplement states the following for Compliance Requirements-Reporting and Recordkeeping: “Each month’s claim for reimbursement and all data used in the claims review process must be maintained on file. Accurate records must be maintained justifying all meals claimed…” Condition: The District does not have a process to review monthly data used in computing meal reimbursement claims. There were errors in the meal counts reported to the state. Specifically, for one month tested, we identified that the Districr reported 11,316 lunch meals for April 2022, but supporting documenation showed 14,816 lunch meals (3,500 less). Cause: The District does not monitor compliance reporting and recordkeeping rules as established by the Iowa Department of Education and the Office of Management and Budget. Effect: The District does not have adequate documentation to ensure compliance with federal requirements regarding reporting and recordkeeping. The District could incorrectly report meal counts. Recommendation: We recommend the District implement a process to review monthly claim reporting and to retain records used in meal count reporting for the required period of time. Response and Corrective Action Plan: The District will implement a process to review and retain meal claim reporting documentation as outlined by the Iowa Department of Education and Office of Management and Budget. Conclusion: Response accepted
Segregation of Duties - The Garner-Hayfield-Ventura Community School District (Distric) did not properly segregate custody, recordkeeping and reconciling functions, including those related to federal programs. See 2022-001
Food Service Contract - Criteria: Payments to vendors are required to be supported by the contract and in accordance with allowable cost principles. Condition: The District has a contract with a food service management company to operate its food service program. Our review of the procedures noted the following: * - There does not appear to be procedures in place to ensure the propriety of the labor amount reimbursed to the food service management company by the District. * - The District paid the food service management company from invoices which did not methematically compute by several thousand dollars. * - The District does not reconcile the dollar equivalent of the number of meals paid to the food service management company with the number of meals served based on the District's records. Cause: The District has not implemented procedures to ensure the contract and payment terms with the food service management company are complied with. Effect: The lack of established polcies and procedures resulted in the issues as noted above. Recommendation: The District should implement procedures to ensure the contract and payment terms with the food service management company are complied with. Response and corrective action planned: We have revamped our polices and procedures in relation to the above issues. Conclusion: Response acknowledged.
Meal Claims - Criteria: The District does not have a process to ensure compliance with reporting requirements within the federal program. Criteria: The April 2022 Office of Management and Budget Compliance Supplement states the following for Compliance Requirements-Reporting and Recordkeeping: “Each month’s claim for reimbursement and all data used in the claims review process must be maintained on file. Accurate records must be maintained justifying all meals claimed…” Condition: The District does not have a process to review monthly data used in computing meal reimbursement claims. There were errors in the meal counts reported to the state. Specifically, for one month tested, we identified that the Districr reported 11,316 lunch meals for April 2022, but supporting documenation showed 14,816 lunch meals (3,500 less). Cause: The District does not monitor compliance reporting and recordkeeping rules as established by the Iowa Department of Education and the Office of Management and Budget. Effect: The District does not have adequate documentation to ensure compliance with federal requirements regarding reporting and recordkeeping. The District could incorrectly report meal counts. Recommendation: We recommend the District implement a process to review monthly claim reporting and to retain records used in meal count reporting for the required period of time. Response and Corrective Action Plan: The District will implement a process to review and retain meal claim reporting documentation as outlined by the Iowa Department of Education and Office of Management and Budget. Conclusion: Response accepted
Segregation of Duties - The Garner-Hayfield-Ventura Community School District (Distric) did not properly segregate custody, recordkeeping and reconciling functions, including those related to federal programs. See 2022-001
Food Service Contract - Criteria: Payments to vendors are required to be supported by the contract and in accordance with allowable cost principles. Condition: The District has a contract with a food service management company to operate its food service program. Our review of the procedures noted the following: * - There does not appear to be procedures in place to ensure the propriety of the labor amount reimbursed to the food service management company by the District. * - The District paid the food service management company from invoices which did not methematically compute by several thousand dollars. * - The District does not reconcile the dollar equivalent of the number of meals paid to the food service management company with the number of meals served based on the District's records. Cause: The District has not implemented procedures to ensure the contract and payment terms with the food service management company are complied with. Effect: The lack of established polcies and procedures resulted in the issues as noted above. Recommendation: The District should implement procedures to ensure the contract and payment terms with the food service management company are complied with. Response and corrective action planned: We have revamped our polices and procedures in relation to the above issues. Conclusion: Response acknowledged.
Meal Claims - Criteria: The District does not have a process to ensure compliance with reporting requirements within the federal program. Criteria: The April 2022 Office of Management and Budget Compliance Supplement states the following for Compliance Requirements-Reporting and Recordkeeping: “Each month’s claim for reimbursement and all data used in the claims review process must be maintained on file. Accurate records must be maintained justifying all meals claimed…” Condition: The District does not have a process to review monthly data used in computing meal reimbursement claims. There were errors in the meal counts reported to the state. Specifically, for one month tested, we identified that the Districr reported 11,316 lunch meals for April 2022, but supporting documenation showed 14,816 lunch meals (3,500 less). Cause: The District does not monitor compliance reporting and recordkeeping rules as established by the Iowa Department of Education and the Office of Management and Budget. Effect: The District does not have adequate documentation to ensure compliance with federal requirements regarding reporting and recordkeeping. The District could incorrectly report meal counts. Recommendation: We recommend the District implement a process to review monthly claim reporting and to retain records used in meal count reporting for the required period of time. Response and Corrective Action Plan: The District will implement a process to review and retain meal claim reporting documentation as outlined by the Iowa Department of Education and Office of Management and Budget. Conclusion: Response accepted
Segregation of Duties - The Garner-Hayfield-Ventura Community School District (Distric) did not properly segregate custody, recordkeeping and reconciling functions, including those related to federal programs. See 2022-001
Food Service Contract - Criteria: Payments to vendors are required to be supported by the contract and in accordance with allowable cost principles. Condition: The District has a contract with a food service management company to operate its food service program. Our review of the procedures noted the following: * - There does not appear to be procedures in place to ensure the propriety of the labor amount reimbursed to the food service management company by the District. * - The District paid the food service management company from invoices which did not methematically compute by several thousand dollars. * - The District does not reconcile the dollar equivalent of the number of meals paid to the food service management company with the number of meals served based on the District's records. Cause: The District has not implemented procedures to ensure the contract and payment terms with the food service management company are complied with. Effect: The lack of established polcies and procedures resulted in the issues as noted above. Recommendation: The District should implement procedures to ensure the contract and payment terms with the food service management company are complied with. Response and corrective action planned: We have revamped our polices and procedures in relation to the above issues. Conclusion: Response acknowledged.
Meal Claims - Criteria: The District does not have a process to ensure compliance with reporting requirements within the federal program. Criteria: The April 2022 Office of Management and Budget Compliance Supplement states the following for Compliance Requirements-Reporting and Recordkeeping: “Each month’s claim for reimbursement and all data used in the claims review process must be maintained on file. Accurate records must be maintained justifying all meals claimed…” Condition: The District does not have a process to review monthly data used in computing meal reimbursement claims. There were errors in the meal counts reported to the state. Specifically, for one month tested, we identified that the Districr reported 11,316 lunch meals for April 2022, but supporting documenation showed 14,816 lunch meals (3,500 less). Cause: The District does not monitor compliance reporting and recordkeeping rules as established by the Iowa Department of Education and the Office of Management and Budget. Effect: The District does not have adequate documentation to ensure compliance with federal requirements regarding reporting and recordkeeping. The District could incorrectly report meal counts. Recommendation: We recommend the District implement a process to review monthly claim reporting and to retain records used in meal count reporting for the required period of time. Response and Corrective Action Plan: The District will implement a process to review and retain meal claim reporting documentation as outlined by the Iowa Department of Education and Office of Management and Budget. Conclusion: Response accepted