Audit 395649

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 the 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 questioned costs. Context: Currently, one individual is responsible for preparing and submitting the monthly reimbursement claims. Effect: Meal claims could be submitted to ISBE that do not accurately reflect the number of meals served. Consequently, the District could be over- or under-reimbursed by this grant program. Cause: Absense 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 monthly claim and a second person (e.g., supervisor) to review and approve the claim before submission. The review should be documented with signatures or electronic approval logs. Management's Response: Management agrees with the finding and will implement a secondary review process over the the preparation and submission of the meal claim. This review will be documented by the signature of the reviewer.