U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 6804 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of free, reduced price, and paid meals served. The total meals served by category are to be derived from the District's point of sale system. Condition: An administrative review conducted by the DESE, CNU reported that the number of preschool meals (breakfast and lunch) were double claimed on monthly claim forms from August 2021 through April 2022. The errors resulted in an over claim totaling $24,476. Cause: The inaccurate reporting of meals served resulted from the District adding preschool meals summarized in manual excel sheets to meals recorded in the point of sale system on the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. The over claim was $24,476. Questioned costs: The amount of questioned costs was $24,476. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise greater care in the preparation of monthly claims for reimbursement. Views of responsible officials: The overclaim was repaid in February of 2023 and the District has put into place steps to prevent this from happening in the future by making sure overclaim does not occur again.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 6804 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Allowable Costs/Cost Principles Criteria or specific requirement: In accordance with 2 CFR 200.318(b) School Food Authorities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts. Labor is not an allowable expense in a fixed meal rate contract. Condition: A procurement review conducted by the Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) reported that unallowable labor charges totaling $27,740 were billed to the District by the foodservice management company (FSMC). Cause: The District failed to monitor the terms, conditions, and specifications of the FSMC contract. Effect: The District paid unallowable labor costs to the FSMC. Questioned costs: The amount of questioned costs was $27,740. Context: Results of a procurement review by the DESE, CNU. Recommendation: The District should exercise greater care in monitoring contract terms. Views of responsible officials: After consulting with CNU, the SFA requested the SFMC to review practices for billing of labor. They opted to not and the District went back to self-operating, no longer using the SFMC. We are seeking legal counsel on recouping the erroneous expenses.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 6804 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of free, reduced price, and paid meals served. The total meals served by category are to be derived from the District's point of sale system. Condition: An administrative review conducted by the DESE, CNU reported that the number of preschool meals (breakfast and lunch) were double claimed on monthly claim forms from August 2021 through April 2022. The errors resulted in an over claim totaling $24,476. Cause: The inaccurate reporting of meals served resulted from the District adding preschool meals summarized in manual excel sheets to meals recorded in the point of sale system on the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. The over claim was $24,476. Questioned costs: The amount of questioned costs was $24,476. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise greater care in the preparation of monthly claims for reimbursement. Views of responsible officials: The overclaim was repaid in February of 2023 and the District has put into place steps to prevent this from happening in the future by making sure overclaim does not occur again.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 6804 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Allowable Costs/Cost Principles Criteria or specific requirement: In accordance with 2 CFR 200.318(b) School Food Authorities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts. Labor is not an allowable expense in a fixed meal rate contract. Condition: A procurement review conducted by the Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) reported that unallowable labor charges totaling $27,740 were billed to the District by the foodservice management company (FSMC). Cause: The District failed to monitor the terms, conditions, and specifications of the FSMC contract. Effect: The District paid unallowable labor costs to the FSMC. Questioned costs: The amount of questioned costs was $27,740. Context: Results of a procurement review by the DESE, CNU. Recommendation: The District should exercise greater care in monitoring contract terms. Views of responsible officials: After consulting with CNU, the SFA requested the SFMC to review practices for billing of labor. They opted to not and the District went back to self-operating, no longer using the SFMC. We are seeking legal counsel on recouping the erroneous expenses.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 6804 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of free, reduced price, and paid meals served. The total meals served by category are to be derived from the District's point of sale system. Condition: An administrative review conducted by the DESE, CNU reported that the number of preschool meals (breakfast and lunch) were double claimed on monthly claim forms from August 2021 through April 2022. The errors resulted in an over claim totaling $24,476. Cause: The inaccurate reporting of meals served resulted from the District adding preschool meals summarized in manual excel sheets to meals recorded in the point of sale system on the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. The over claim was $24,476. Questioned costs: The amount of questioned costs was $24,476. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise greater care in the preparation of monthly claims for reimbursement. Views of responsible officials: The overclaim was repaid in February of 2023 and the District has put into place steps to prevent this from happening in the future by making sure overclaim does not occur again.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 6804 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Allowable Costs/Cost Principles Criteria or specific requirement: In accordance with 2 CFR 200.318(b) School Food Authorities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts. Labor is not an allowable expense in a fixed meal rate contract. Condition: A procurement review conducted by the Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) reported that unallowable labor charges totaling $27,740 were billed to the District by the foodservice management company (FSMC). Cause: The District failed to monitor the terms, conditions, and specifications of the FSMC contract. Effect: The District paid unallowable labor costs to the FSMC. Questioned costs: The amount of questioned costs was $27,740. Context: Results of a procurement review by the DESE, CNU. Recommendation: The District should exercise greater care in monitoring contract terms. Views of responsible officials: After consulting with CNU, the SFA requested the SFMC to review practices for billing of labor. They opted to not and the District went back to self-operating, no longer using the SFMC. We are seeking legal counsel on recouping the erroneous expenses.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 6804 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of free, reduced price, and paid meals served. The total meals served by category are to be derived from the District's point of sale system. Condition: An administrative review conducted by the DESE, CNU reported that the number of preschool meals (breakfast and lunch) were double claimed on monthly claim forms from August 2021 through April 2022. The errors resulted in an over claim totaling $24,476. Cause: The inaccurate reporting of meals served resulted from the District adding preschool meals summarized in manual excel sheets to meals recorded in the point of sale system on the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. The over claim was $24,476. Questioned costs: The amount of questioned costs was $24,476. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise greater care in the preparation of monthly claims for reimbursement. Views of responsible officials: The overclaim was repaid in February of 2023 and the District has put into place steps to prevent this from happening in the future by making sure overclaim does not occur again.
U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 6804 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Allowable Costs/Cost Principles Criteria or specific requirement: In accordance with 2 CFR 200.318(b) School Food Authorities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts. Labor is not an allowable expense in a fixed meal rate contract. Condition: A procurement review conducted by the Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) reported that unallowable labor charges totaling $27,740 were billed to the District by the foodservice management company (FSMC). Cause: The District failed to monitor the terms, conditions, and specifications of the FSMC contract. Effect: The District paid unallowable labor costs to the FSMC. Questioned costs: The amount of questioned costs was $27,740. Context: Results of a procurement review by the DESE, CNU. Recommendation: The District should exercise greater care in monitoring contract terms. Views of responsible officials: After consulting with CNU, the SFA requested the SFMC to review practices for billing of labor. They opted to not and the District went back to self-operating, no longer using the SFMC. We are seeking legal counsel on recouping the erroneous expenses.