Audit 402313

Federal Agency: U.S. Department of Education Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: 10.CNC Child Nutrition Cluster 2024 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): Unknown Award Period: July 1, 2022 through June 30, 2024 Type of Finding: - Material Weakness in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR section 200.303(a), a non-Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should comply with the guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control-Integrated Framework," issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context: The District is required to submit monthly reimbursement requests to the Pennsylvania Department of Education (PDE). PDE utilizes these reports as reimbursement requests and subsequently submits payment to the District based on reported expenditures. For three of three monthly reimbursements selected for testing, the District was unable to provide documentation that there has been a review and approval process over the report prior to submission to the State. Questioned costs: None Cause: The District has not established formal policies/procedures requiring supervisory review and documented approval of reports prior to submission or reliance for external reporting. Effect: Without documented review controls, there is an increased risk that reporting errors, omissions, or noncompliance could occur and not be detected timely, which could result in incorrect information being used in the District’s external financial reporting and/or submissions to oversight agencies. Repeat Finding: Not a repeat finding. Recommendation: We recommend the District implement a documented review and approval process over reporting, including defined roles and responsibilities, required evidence of review, and retention of supporting documentation. Views of responsible officials: Management concurs with the finding.