Audit 390192

Noncompliance with Allowable Costs/Cost Principles Assistance Listing Number: 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Entity: Kentucky Department of Education Criteria: Per 2 CFR 200.403 and the grant agreement, only allowable costs that are necessary, reasonable, and adequately documented may be charged to the program. Reimbursement requests must accurately reflect actual participation and allowable costs. Condition: During our audit of the Summer Feeding Program, we identified that the entity submitted reimbursement sheets that did not accurately reflect actual participation and allowable costs. As a result, the entity received $20,601 in excess federal reimbursements during the audit period ended June 30, 2025. Cause: The entity did not have adequate internal controls to ensure that reimbursement sheets were properly completed and reconciled to actual participation and allowable costs prior to submission. Effect: Unallowable costs were charged to the federal program, resulting in $20,601 of questioned costs. The State oversight agency subsequently suspended the entity's ability to operate the federal summer feeding program and required repayment of the excess funds. Known Questioned Costs: $20,601, calculated as the excess reimbursement received due to errors in the reimbursement sheets during the audit period. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the entity implement procedures to ensure that all reimbursement requests are accurately prepared and reconciled to actual participation and allowable costs prior to submission. Staff should receive training on federal documentation and reporting requirements. However, as of this time, the Agency has been disallowed from participating in the Summer Feeding program by the Kentucky Department of Education. Views of Responsible Officials: Management concurs with the finding. The entity has implemented new procedures for the preparation and review of reimbursement requests.