FAC Explorer

Audit 34592

FY End
2022-06-30
Total Expended
$1.00M
Findings
6
Programs
1
Organization: Fort Bragg Schools Cafeteria Fund (NC)
Year: 2022 Accepted: 2023-07-15
Auditor: Sharpe Patel PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34662 2022-001 Significant Deficiency Yes L
34663 2022-002 Significant Deficiency Yes P
34664 2022-003 Significant Deficiency Yes C
611104 2022-001 Significant Deficiency Yes L
611105 2022-002 Significant Deficiency Yes P
611106 2022-003 Significant Deficiency Yes C

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $157,812 Yes 0

Contacts

Name Title Type
L2BCSCMXTJX7 Mike Riles Auditee
9199070336 Jay Sharpe Auditor
No contacts on file

Notes to SEFA

Title: Food Donation Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Fort Bragg Schools Cafeteria Fund 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 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 Fort Bragg Schools Cafeteria Fund, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Fort Bragg Schools Cafeteria Fund. Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in 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. Nonmonetary assistance is reported in the Schedule at the fair market value of commodities received. At June 30, 2022, the Organization had food commodities totaling $95,803 in inventory.

Finding Details

Finding 2022-001
Finding 2022-001 Significant Deficiency Financial Statement Preparation Criteria: The Organization did not provide the auditors with complete and accurate financial statements and disclosures presented in accordance with generally accepted accounting principles. Condition: The Board of Directors and management share the ultimate responsibility for the Organization's internal control system and the accuracy and completeness of the Organization's financial statements and disclosures to ensure that those financial statements are presented in accordance with generally accepted accounting principles. Effect: Lack of a thorough review process could result in misstatements or omissions in the financial statements. Cause: There is a limited number of personnel in the Cafeteria Fund office. Questioned Costs: None. Recommendation: The Organization should review its current process for preparation of annual financial statements and allocate the resources necessary to ensure a thorough review of the financial statements and disclosures by personnel possessing the appropriate knowledge and skills.
Finding 2022-002
Finding 2022-002 Significant Deficiency Internal controls Criteria: With a limited number of personnel for certain functions, there are inherent limitations of the effectiveness of certain controls due to the lack of segregation of duties among Organization personnel. Condition: Duties should be segregated and alternative controls used to compensate for lack of separation. Effect: Transactions could be mishandled. Cause: There is a limited number of personnel in the Cafeteria Fund office. Questioned Costs: None. Recommendation: The duties should be separated as much as possible and alternative controls should be used to compensate for lack of separation.
Finding 2022-003
Finding 2022-003 Significant Deficiency Cash Management 2022-3 Criteria: The Organization shall limit its net cash resources to an amount that does not exceed three (3) months average expenditures for its child nutrition program. Condition: Based on the formula provided by the compliance supplement, the Organization exceed three (3) months average expenditures regarding its cash balances at June 30, 2022. Effect: The cash has excess cash resources over the recommended amounts based on 2022 operating expenditures Cause: The Organization has created increased efficiencies in its operations. Questioned Costs: None. Recommendation: We recommend that the Organization implement procedures to ensure that cash resources do not exceed three (3) months average of operating expenditures.
Finding 2022-001
Finding 2022-001 Significant Deficiency Financial Statement Preparation Criteria: The Organization did not provide the auditors with complete and accurate financial statements and disclosures presented in accordance with generally accepted accounting principles. Condition: The Board of Directors and management share the ultimate responsibility for the Organization's internal control system and the accuracy and completeness of the Organization's financial statements and disclosures to ensure that those financial statements are presented in accordance with generally accepted accounting principles. Effect: Lack of a thorough review process could result in misstatements or omissions in the financial statements. Cause: There is a limited number of personnel in the Cafeteria Fund office. Questioned Costs: None. Recommendation: The Organization should review its current process for preparation of annual financial statements and allocate the resources necessary to ensure a thorough review of the financial statements and disclosures by personnel possessing the appropriate knowledge and skills.
Finding 2022-002
Finding 2022-002 Significant Deficiency Internal controls Criteria: With a limited number of personnel for certain functions, there are inherent limitations of the effectiveness of certain controls due to the lack of segregation of duties among Organization personnel. Condition: Duties should be segregated and alternative controls used to compensate for lack of separation. Effect: Transactions could be mishandled. Cause: There is a limited number of personnel in the Cafeteria Fund office. Questioned Costs: None. Recommendation: The duties should be separated as much as possible and alternative controls should be used to compensate for lack of separation.
Finding 2022-003
Finding 2022-003 Significant Deficiency Cash Management 2022-3 Criteria: The Organization shall limit its net cash resources to an amount that does not exceed three (3) months average expenditures for its child nutrition program. Condition: Based on the formula provided by the compliance supplement, the Organization exceed three (3) months average expenditures regarding its cash balances at June 30, 2022. Effect: The cash has excess cash resources over the recommended amounts based on 2022 operating expenditures Cause: The Organization has created increased efficiencies in its operations. Questioned Costs: None. Recommendation: We recommend that the Organization implement procedures to ensure that cash resources do not exceed three (3) months average of operating expenditures.