Audit 386204

Criteria or Specific Requirement: Per 2 CFR 200.303 - Internal Controls and the OMB Compliance Supplement: Child Nutrition Cluster, Reporting- the District is required to have internal controls, including segregation of duties, over reporting of monthly reimbursement claims. Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Questioned Costs: This condition resulted in no identified questioned costs. Context: Currently one individual is responsible for preparing and submitting the monthly reimbursement claims. Effect: Meal claims could be submitted to the Illinois State Board of Education that do not accurately reflect the number of meals served. Consequently, the District could be over- or under- reimbursed by this grant program. Cause: Absence of formal internal control procedures resulted in one person performing all reporting functions. Recommendation: Implement segregation of duties by requiring one person to prepare the claim and a second person (e.g., supervisor) to review and approve the claim before submission. The review should be supported with signatures or electronic approval logs. Management's Response: A corrective action plan will be developed and implemented. A secondary review of the meal claim to the supporting documents will be performed before the meal claim is submitted.