Audit 391180

8. Criteria or specific requirement: Per Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) Subpart D, Post Federal Award Requirements Section 200.303, Internal controls, the recipient must establish, document and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Per 7 CFR Section 210.8(a), the school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. '9. Condition: One (1) of the monthly claims for reimbursement reported meal counts in excess of those supported by records of the District. The November 2024 claim amounts were consistent with participation levels and reimbursement amounts in other months tested. No anomalies or fluctuations were identified through analytical procedures; however, required supporting documentation was not maintained. '10. Cause: The District's internal controls over compliance were not functioning effectively to ensure claims for reimbursement were accurately prepared. '11. Effect: Claims could not be verified as allowable and properly supported. '12. Questioned Costs: The following questioned costs were computed based on the excess meals claimed for reimbursement times the applicable reimbursement rate: $719 (Project No. 25-4220-00). '13. Context: From the population of eleven (11) monthly claims for reimbursement, a sample of two (2) claims were selected for testing. We noted one (1) month in which the claims for reimbursement reported meal counts in excess of those supported by records of the District as follows: November 2024: Actual breakfast meals served: 8,408; Breakfast meals claimed for reimbursement: 8,661. The difference was due to one (1) day where the supporting documentation was not maintained. A statistically valid sample was not utilized. '14. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over compliance. '15. Management's response: The District agrees with the auditor's finding and recommendation.