Audit 376814

Finding 2025-001 Activities Allowed ALN 10.553/10.555/10.559/10.582 Child Nutrition Cluster Criteria: 2 CFR part 200 section 303 indicates that the District is responsible for establishing and maintaining effective internal control over the Federal award that provides reasonable assurance that the District is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During testing, it was noted that 1 of the 40 transactions selected for testing in the Child Nutrition Cluster did not have sufficient audit evidence to demonstrate approval of an authorized pay rate prior to payment. There were no instances of noncompliance with activities allowed requirements related to the transactions selected. Cause: Controls over expenditures were not functioning as designed since a pay rate had no evidence of being approved due to oversight. Effect: Internal controls over this requirement were not operating effectively. Questioned Costs: None noted. Recommendation: The District should follow its established internal control procedures over activities allowed requirements. Views of Responsible Officials: Since this was an inadvertent clerical error, District will continue to review its’ internal control procedures over payroll and established procedures to ensure employee pay rates show signs of approval prior to payroll being processed.