FAC Explorer

Audit 359131

FY End
2024-09-30
Total Expended
$2.03M
Findings
6
Programs
1
Organization: Nutrition Education Services, Inc. (LA)
Year: 2024 Accepted: 2025-06-18
Auditor: Minda B Raybourn CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565295 2024-001 Significant Deficiency - A
565296 2024-002 Significant Deficiency - A
565297 2024-003 - - A
1141737 2024-001 Significant Deficiency - A
1141738 2024-002 Significant Deficiency - A
1141739 2024-003 - - A

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $2.03M Yes 3

Contacts

Name Title Type
J6NRHP9JLDJ1 Minda B Raybourn Auditee
9853355998 Minda B Raybourn Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the 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: Nutrition Education Services, Inc. has elected not to use the 10% de minimi indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Nutrition Education Services, Inc. under programs of the federal government for the year ended September 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2, U.S. Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Nutrition Education Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Nutrition Education Services, Inc.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the 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: Nutrition Education Services, Inc. has elected not to use the 10% de minimi indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the 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.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the 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: Nutrition Education Services, Inc. has elected not to use the 10% de minimi indirect cost rate allowed under the Uniform Guidance. Nutrition Education Services, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Subrecepients Accounting Policies: Expenditures reported on the Schedule are reported on the 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: Nutrition Education Services, Inc. has elected not to use the 10% de minimi indirect cost rate allowed under the Uniform Guidance. There was not awards passed through to sub-receipients

Finding Details

Finding 2024-001
Condition: The agency amended the administrative expenditure budget effective February 1, 2024. One employee had a budgeted salary amended effective February 1, 2024. The amended budget document shows the amended salary at $27.95 per hour for 88 hours at a total of $19,676.80. Per discussion with management, this amount was not correct. The employee’s amended salary should have been $27.95 per hour at 8 hours for 3 days per week from February 2024 through September 2024. The correct amended budget salary should have been $22,807.20. The amount that should have been paid per month was $2,850.90 or $22,807.20 for February through September 2024. The employee was actually paid $3,521.70 per month from February 1, 2024 through September 30, 2024 for a total of $28,173.60. The result was an overpayment of $5,366.Criteria: Internal controls should be in place to ensure budgeted salaries that are amended are computed correctly and that the correct pay rate is used to pay employees. Cause: The budgeted salary for an employee were not amended correctly. For payroll processing, the correct amended budget for wages was not used on one employee. The correct revised change was not processed in the payroll system.Effect: The employee was over paid in the amount of $5,366.Recommendation: The Executive Director must ensure that any amended budgets for salaries are computed correctly and properly reflected in the accounting system before processing the payroll that includes the change. Copies of the payroll that is budgeted for administrative salaries should be provided for review and to ensure that the correct pay rate is used for computing payroll expenditures. Management Response: We agree with finding and the recommended procedure to be implemented. Responsible Official: Mark Cittadino, Executive Director, PO Box 5280, Slidell, LA 70469, Telephone (985) 641-5051
Finding 2024-002
Condition: The agency amended the administrative expenditure budget effective February 1, 2024. One employee had a budgeted salary amended effective February 1, 2024. The amended budget document shows the amended salary at $27.95 per hour for 88 hours at a total of $19,676.80. Per discussion with management, this amount was not correct. The employee’s amended salary should have been $27.95 per hour at 8 hours for 3 days per week from February 2024 through September 2024. The amount that should have been paid per month was $2,850.90 or $22,807.20 for February through September. The employee was actually paid $3,521.70 per month from February 1, 2024 through September 30, 2024 for a total of $28,173.60. The result was an overpayment of $5,366. Criteria: Internal controls should be in place to ensure budgeted salaries that are amended are computed correctly and that the correct pay rate is used to pay employees. Cause: The budgeted salary for an employee were not amended correctly. For payroll processing, the correct amended budget for wages was not used on one employee. The correct revised change was not processed in the payroll system. Effect: The employee was over paid in the amount of $5,366. Recommendation: The Executive Director must ensure that any amended budgets for salaries are computed correctly and properly reflected in the accounting system before processing the payroll that includes the change. Copies of the payroll that is budgeted for administrative salaries should be provided for review and to ensure that the correct pay rate is used for computing payroll expenditures. Management Response: We agree with finding and the recommended procedure to be implemented. Responsible Official: Mark Cittadino, Executive Director, PO Box 5280, Slidell, LA 70469, Telephone (985) 641-5051
Finding 2024-003
Condition: The agency amended the administrative expenditure budget effective February 1, 2024. One employee had a budgeted salary amended effective February 1, 2024. The amended budget document shows the amended salary at $27.95 per hour for 88 hours at a total of $19,676.80. Per discussion with management, this amount was not correct. The employee’s amended salary should have been $27.95 per hour at 8 hours for 3 days per week from February 2024 through September 2024. The amount that should have been paid per month was $2,850.90 or $22,807.20 for February through September. The employee was actually paid $3,521.70 per month from February 1, 2024 through September 30, 2024 for a total of $28,173.60. The result was an overpayment of $5,366. Criteria: CACFP funds may be used to pay for expenditures that meet Food and Nutrition Services’ (FNS) definition of allowable, are reasonable and necessary, and have State agency approval. An agency may have costs that are necessary and reasonable for operation of the institution but are not allowed as Program costs. Program funds may not be used to cover unallowable costs. Agencies must include all costs in the budget. The allowable costs must be approved in advance by the State agency through the annual budget approval process or amendment process before the agency can charge them to the CACFP. Cause: The budgeted salary for an employee were not amended correctly. For payroll processing, the correct amended budget for wages was not used on one employee. The correct revised change was not processed in the payroll system. Effect: The employee was over paid in the amount of $5,366. Context: The total amount of expenditures for the program totaled $2,025,416. Of this amount, administrative expenditures totaled $311,466. The population of administrative expenditures contained 326 disbursements. A sample of 46 administrative expenses were selected for audit. A test of administrative expenditures showed that one employee was paid more than the amended salary in February 2024. As a result, the wages to the payroll were examined for February 2024 through September 2024. The employee was overpaid February 2024 through September 2024 in the amount of $ 5,366. The sample was a statistically valid sample. Recommendation: The Executive Director must ensure that any amended budgets for salaries are properly reflected in the accounting system before processing the payroll that includes the change. Copies of the payroll that is budgeted for administrative salaries should be provided for review and to ensure that the correct pay rate is used for computing payroll expenditures. Management Response: We agree with finding and the recommended procedure to be implemented. Responsible Official: Mark Cittadino, Executive Director, PO Box 5280, Slidell, LA 70469, Telephone (985) 641-5051 Total Department of Agriculture Questioned Costs: $5,366
Finding 2024-001
Condition: The agency amended the administrative expenditure budget effective February 1, 2024. One employee had a budgeted salary amended effective February 1, 2024. The amended budget document shows the amended salary at $27.95 per hour for 88 hours at a total of $19,676.80. Per discussion with management, this amount was not correct. The employee’s amended salary should have been $27.95 per hour at 8 hours for 3 days per week from February 2024 through September 2024. The correct amended budget salary should have been $22,807.20. The amount that should have been paid per month was $2,850.90 or $22,807.20 for February through September 2024. The employee was actually paid $3,521.70 per month from February 1, 2024 through September 30, 2024 for a total of $28,173.60. The result was an overpayment of $5,366.Criteria: Internal controls should be in place to ensure budgeted salaries that are amended are computed correctly and that the correct pay rate is used to pay employees. Cause: The budgeted salary for an employee were not amended correctly. For payroll processing, the correct amended budget for wages was not used on one employee. The correct revised change was not processed in the payroll system.Effect: The employee was over paid in the amount of $5,366.Recommendation: The Executive Director must ensure that any amended budgets for salaries are computed correctly and properly reflected in the accounting system before processing the payroll that includes the change. Copies of the payroll that is budgeted for administrative salaries should be provided for review and to ensure that the correct pay rate is used for computing payroll expenditures. Management Response: We agree with finding and the recommended procedure to be implemented. Responsible Official: Mark Cittadino, Executive Director, PO Box 5280, Slidell, LA 70469, Telephone (985) 641-5051
Finding 2024-002
Condition: The agency amended the administrative expenditure budget effective February 1, 2024. One employee had a budgeted salary amended effective February 1, 2024. The amended budget document shows the amended salary at $27.95 per hour for 88 hours at a total of $19,676.80. Per discussion with management, this amount was not correct. The employee’s amended salary should have been $27.95 per hour at 8 hours for 3 days per week from February 2024 through September 2024. The amount that should have been paid per month was $2,850.90 or $22,807.20 for February through September. The employee was actually paid $3,521.70 per month from February 1, 2024 through September 30, 2024 for a total of $28,173.60. The result was an overpayment of $5,366. Criteria: Internal controls should be in place to ensure budgeted salaries that are amended are computed correctly and that the correct pay rate is used to pay employees. Cause: The budgeted salary for an employee were not amended correctly. For payroll processing, the correct amended budget for wages was not used on one employee. The correct revised change was not processed in the payroll system. Effect: The employee was over paid in the amount of $5,366. Recommendation: The Executive Director must ensure that any amended budgets for salaries are computed correctly and properly reflected in the accounting system before processing the payroll that includes the change. Copies of the payroll that is budgeted for administrative salaries should be provided for review and to ensure that the correct pay rate is used for computing payroll expenditures. Management Response: We agree with finding and the recommended procedure to be implemented. Responsible Official: Mark Cittadino, Executive Director, PO Box 5280, Slidell, LA 70469, Telephone (985) 641-5051
Finding 2024-003
Condition: The agency amended the administrative expenditure budget effective February 1, 2024. One employee had a budgeted salary amended effective February 1, 2024. The amended budget document shows the amended salary at $27.95 per hour for 88 hours at a total of $19,676.80. Per discussion with management, this amount was not correct. The employee’s amended salary should have been $27.95 per hour at 8 hours for 3 days per week from February 2024 through September 2024. The amount that should have been paid per month was $2,850.90 or $22,807.20 for February through September. The employee was actually paid $3,521.70 per month from February 1, 2024 through September 30, 2024 for a total of $28,173.60. The result was an overpayment of $5,366. Criteria: CACFP funds may be used to pay for expenditures that meet Food and Nutrition Services’ (FNS) definition of allowable, are reasonable and necessary, and have State agency approval. An agency may have costs that are necessary and reasonable for operation of the institution but are not allowed as Program costs. Program funds may not be used to cover unallowable costs. Agencies must include all costs in the budget. The allowable costs must be approved in advance by the State agency through the annual budget approval process or amendment process before the agency can charge them to the CACFP. Cause: The budgeted salary for an employee were not amended correctly. For payroll processing, the correct amended budget for wages was not used on one employee. The correct revised change was not processed in the payroll system. Effect: The employee was over paid in the amount of $5,366. Context: The total amount of expenditures for the program totaled $2,025,416. Of this amount, administrative expenditures totaled $311,466. The population of administrative expenditures contained 326 disbursements. A sample of 46 administrative expenses were selected for audit. A test of administrative expenditures showed that one employee was paid more than the amended salary in February 2024. As a result, the wages to the payroll were examined for February 2024 through September 2024. The employee was overpaid February 2024 through September 2024 in the amount of $ 5,366. The sample was a statistically valid sample. Recommendation: The Executive Director must ensure that any amended budgets for salaries are properly reflected in the accounting system before processing the payroll that includes the change. Copies of the payroll that is budgeted for administrative salaries should be provided for review and to ensure that the correct pay rate is used for computing payroll expenditures. Management Response: We agree with finding and the recommended procedure to be implemented. Responsible Official: Mark Cittadino, Executive Director, PO Box 5280, Slidell, LA 70469, Telephone (985) 641-5051 Total Department of Agriculture Questioned Costs: $5,366