FAC Explorer

Audit 6435

FY End
2023-06-30
Total Expended
$5.32M
Findings
8
Programs
2
Organization: School Nutrition Prog of the Archdiocese of La Education & Welfare Cor (CA)
Year: 2023 Accepted: 2023-12-13
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4117 2023-001 Significant Deficiency - N
4118 2023-001 Significant Deficiency - N
4119 2023-001 Significant Deficiency - N
4120 2023-001 Significant Deficiency - N
580559 2023-001 Significant Deficiency - N
580560 2023-001 Significant Deficiency - N
580561 2023-001 Significant Deficiency - N
580562 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $141,706 Yes 1
10.553 School Breakfast Program $121,860 Yes 1

Contacts

Name Title Type
U3K6HV62EXR3 Lilia Chavez Auditee
2136377915 Mandy Pittman Auditor
No contacts on file

Notes to SEFA

Title: Note 1-Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying information numbers are presented where available. The information in the Schedule is presented in accordance with the requirements of the Uniform Guidance; therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The SNP did not use the 10% de minimis cost rate during the year ended June 30, 2023. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the School Nutrition Program (the SNP) of the Archdiocese of Los Angeles Education and Welfare Corporation (the Corporation) for its preschools, elementary schools and high schools that received and expended the federal awards for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of the OMB Compliance Supplement, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the Uniform Guidance). The Corporation’s SNP reporting entity is defined in Note 1 to the Corporation’s SNP financial statements. Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the Corporation. The SNP is eligible and has elected to perform a program specific audit since they only have one federal program, the Child Nutrition Cluster.
Title: Note 2-Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying information numbers are presented where available. The information in the Schedule is presented in accordance with the requirements of the Uniform Guidance; therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The SNP did not use the 10% de minimis cost rate during the year ended June 30, 2023. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying information numbers are presented where available. The information in the Schedule is presented in accordance with the requirements of the Uniform Guidance; therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: Note 3-Indirect Costs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying information numbers are presented where available. The information in the Schedule is presented in accordance with the requirements of the Uniform Guidance; therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The SNP did not use the 10% de minimis cost rate during the year ended June 30, 2023. The SNP did not use the 10% de minimis cost rate during the year ended June 30, 2023.

Finding Details

Finding 2023-001
Federal Program Title: U.S. Department of Agriculture (USDA) Passed through the State of California Department of Education 10.553/10.555 Child Nutrition Cluster Award: A1960Z 7/1/22-6/30/23 Finding 2023-001—Verification Population Criteria or specific requirements Section III, P. of the grant agreement from the California Department of Education Nutrition Services Division Permanent Single Agreement, states that verification must be completed on Household meals Benefit Applications as specified by Child Nutrition Program (CNP) regulations and guidance. Local Education Agency (LEA) must select the sample by the lesser of 3% or 3000 of the approved applications on file as of October 1, selected from error prone applications. Condition While gaining our understanding of controls over verification, management noted that they rely on their internal software, Paradox, to tally the number of applications on file as of October 1, as well as any reports considered error prone. The system does not print out a report to list out all applications and management was unable to reproduce any report to show the total number of applications to agree to the tallied applications from the Paradox system as of October 1. The Paradox system is based on the application entered into the system by the SNP Personnel. Cause Management has become reliant on its system to perform controls. Effect or potential effect The wrong number of students could be verified resulting in noncompliance. Questioned costs None. Context Although we were able to see that management did perform a verification sample, we could not get comfortable with the number of approved applications on file as of October 1 and, therefore, could not determine if management tested the required number of applications. Repeat finding No. Recommendation We recommend that SNP maintain a report of all applications from the Paradox system as of October 1 and review to ensure they have a complete population to perform their verification test. Views of Responsible Officials Management agrees with the finding. See corrective action plan.
Finding 2023-001
Federal Program Title: U.S. Department of Agriculture (USDA) Passed through the State of California Department of Education 10.553/10.555 Child Nutrition Cluster Award: A1960Z 7/1/22-6/30/23 Finding 2023-001—Verification Population Criteria or specific requirements Section III, P. of the grant agreement from the California Department of Education Nutrition Services Division Permanent Single Agreement, states that verification must be completed on Household meals Benefit Applications as specified by Child Nutrition Program (CNP) regulations and guidance. Local Education Agency (LEA) must select the sample by the lesser of 3% or 3000 of the approved applications on file as of October 1, selected from error prone applications. Condition While gaining our understanding of controls over verification, management noted that they rely on their internal software, Paradox, to tally the number of applications on file as of October 1, as well as any reports considered error prone. The system does not print out a report to list out all applications and management was unable to reproduce any report to show the total number of applications to agree to the tallied applications from the Paradox system as of October 1. The Paradox system is based on the application entered into the system by the SNP Personnel. Cause Management has become reliant on its system to perform controls. Effect or potential effect The wrong number of students could be verified resulting in noncompliance. Questioned costs None. Context Although we were able to see that management did perform a verification sample, we could not get comfortable with the number of approved applications on file as of October 1 and, therefore, could not determine if management tested the required number of applications. Repeat finding No. Recommendation We recommend that SNP maintain a report of all applications from the Paradox system as of October 1 and review to ensure they have a complete population to perform their verification test. Views of Responsible Officials Management agrees with the finding. See corrective action plan.
Finding 2023-001
Federal Program Title: U.S. Department of Agriculture (USDA) Passed through the State of California Department of Education 10.553/10.555 Child Nutrition Cluster Award: A1960Z 7/1/22-6/30/23 Finding 2023-001—Verification Population Criteria or specific requirements Section III, P. of the grant agreement from the California Department of Education Nutrition Services Division Permanent Single Agreement, states that verification must be completed on Household meals Benefit Applications as specified by Child Nutrition Program (CNP) regulations and guidance. Local Education Agency (LEA) must select the sample by the lesser of 3% or 3000 of the approved applications on file as of October 1, selected from error prone applications. Condition While gaining our understanding of controls over verification, management noted that they rely on their internal software, Paradox, to tally the number of applications on file as of October 1, as well as any reports considered error prone. The system does not print out a report to list out all applications and management was unable to reproduce any report to show the total number of applications to agree to the tallied applications from the Paradox system as of October 1. The Paradox system is based on the application entered into the system by the SNP Personnel. Cause Management has become reliant on its system to perform controls. Effect or potential effect The wrong number of students could be verified resulting in noncompliance. Questioned costs None. Context Although we were able to see that management did perform a verification sample, we could not get comfortable with the number of approved applications on file as of October 1 and, therefore, could not determine if management tested the required number of applications. Repeat finding No. Recommendation We recommend that SNP maintain a report of all applications from the Paradox system as of October 1 and review to ensure they have a complete population to perform their verification test. Views of Responsible Officials Management agrees with the finding. See corrective action plan.
Finding 2023-001
Federal Program Title: U.S. Department of Agriculture (USDA) Passed through the State of California Department of Education 10.553/10.555 Child Nutrition Cluster Award: A1960Z 7/1/22-6/30/23 Finding 2023-001—Verification Population Criteria or specific requirements Section III, P. of the grant agreement from the California Department of Education Nutrition Services Division Permanent Single Agreement, states that verification must be completed on Household meals Benefit Applications as specified by Child Nutrition Program (CNP) regulations and guidance. Local Education Agency (LEA) must select the sample by the lesser of 3% or 3000 of the approved applications on file as of October 1, selected from error prone applications. Condition While gaining our understanding of controls over verification, management noted that they rely on their internal software, Paradox, to tally the number of applications on file as of October 1, as well as any reports considered error prone. The system does not print out a report to list out all applications and management was unable to reproduce any report to show the total number of applications to agree to the tallied applications from the Paradox system as of October 1. The Paradox system is based on the application entered into the system by the SNP Personnel. Cause Management has become reliant on its system to perform controls. Effect or potential effect The wrong number of students could be verified resulting in noncompliance. Questioned costs None. Context Although we were able to see that management did perform a verification sample, we could not get comfortable with the number of approved applications on file as of October 1 and, therefore, could not determine if management tested the required number of applications. Repeat finding No. Recommendation We recommend that SNP maintain a report of all applications from the Paradox system as of October 1 and review to ensure they have a complete population to perform their verification test. Views of Responsible Officials Management agrees with the finding. See corrective action plan.
Finding 2023-001
Federal Program Title: U.S. Department of Agriculture (USDA) Passed through the State of California Department of Education 10.553/10.555 Child Nutrition Cluster Award: A1960Z 7/1/22-6/30/23 Finding 2023-001—Verification Population Criteria or specific requirements Section III, P. of the grant agreement from the California Department of Education Nutrition Services Division Permanent Single Agreement, states that verification must be completed on Household meals Benefit Applications as specified by Child Nutrition Program (CNP) regulations and guidance. Local Education Agency (LEA) must select the sample by the lesser of 3% or 3000 of the approved applications on file as of October 1, selected from error prone applications. Condition While gaining our understanding of controls over verification, management noted that they rely on their internal software, Paradox, to tally the number of applications on file as of October 1, as well as any reports considered error prone. The system does not print out a report to list out all applications and management was unable to reproduce any report to show the total number of applications to agree to the tallied applications from the Paradox system as of October 1. The Paradox system is based on the application entered into the system by the SNP Personnel. Cause Management has become reliant on its system to perform controls. Effect or potential effect The wrong number of students could be verified resulting in noncompliance. Questioned costs None. Context Although we were able to see that management did perform a verification sample, we could not get comfortable with the number of approved applications on file as of October 1 and, therefore, could not determine if management tested the required number of applications. Repeat finding No. Recommendation We recommend that SNP maintain a report of all applications from the Paradox system as of October 1 and review to ensure they have a complete population to perform their verification test. Views of Responsible Officials Management agrees with the finding. See corrective action plan.
Finding 2023-001
Federal Program Title: U.S. Department of Agriculture (USDA) Passed through the State of California Department of Education 10.553/10.555 Child Nutrition Cluster Award: A1960Z 7/1/22-6/30/23 Finding 2023-001—Verification Population Criteria or specific requirements Section III, P. of the grant agreement from the California Department of Education Nutrition Services Division Permanent Single Agreement, states that verification must be completed on Household meals Benefit Applications as specified by Child Nutrition Program (CNP) regulations and guidance. Local Education Agency (LEA) must select the sample by the lesser of 3% or 3000 of the approved applications on file as of October 1, selected from error prone applications. Condition While gaining our understanding of controls over verification, management noted that they rely on their internal software, Paradox, to tally the number of applications on file as of October 1, as well as any reports considered error prone. The system does not print out a report to list out all applications and management was unable to reproduce any report to show the total number of applications to agree to the tallied applications from the Paradox system as of October 1. The Paradox system is based on the application entered into the system by the SNP Personnel. Cause Management has become reliant on its system to perform controls. Effect or potential effect The wrong number of students could be verified resulting in noncompliance. Questioned costs None. Context Although we were able to see that management did perform a verification sample, we could not get comfortable with the number of approved applications on file as of October 1 and, therefore, could not determine if management tested the required number of applications. Repeat finding No. Recommendation We recommend that SNP maintain a report of all applications from the Paradox system as of October 1 and review to ensure they have a complete population to perform their verification test. Views of Responsible Officials Management agrees with the finding. See corrective action plan.
Finding 2023-001
Federal Program Title: U.S. Department of Agriculture (USDA) Passed through the State of California Department of Education 10.553/10.555 Child Nutrition Cluster Award: A1960Z 7/1/22-6/30/23 Finding 2023-001—Verification Population Criteria or specific requirements Section III, P. of the grant agreement from the California Department of Education Nutrition Services Division Permanent Single Agreement, states that verification must be completed on Household meals Benefit Applications as specified by Child Nutrition Program (CNP) regulations and guidance. Local Education Agency (LEA) must select the sample by the lesser of 3% or 3000 of the approved applications on file as of October 1, selected from error prone applications. Condition While gaining our understanding of controls over verification, management noted that they rely on their internal software, Paradox, to tally the number of applications on file as of October 1, as well as any reports considered error prone. The system does not print out a report to list out all applications and management was unable to reproduce any report to show the total number of applications to agree to the tallied applications from the Paradox system as of October 1. The Paradox system is based on the application entered into the system by the SNP Personnel. Cause Management has become reliant on its system to perform controls. Effect or potential effect The wrong number of students could be verified resulting in noncompliance. Questioned costs None. Context Although we were able to see that management did perform a verification sample, we could not get comfortable with the number of approved applications on file as of October 1 and, therefore, could not determine if management tested the required number of applications. Repeat finding No. Recommendation We recommend that SNP maintain a report of all applications from the Paradox system as of October 1 and review to ensure they have a complete population to perform their verification test. Views of Responsible Officials Management agrees with the finding. See corrective action plan.
Finding 2023-001
Federal Program Title: U.S. Department of Agriculture (USDA) Passed through the State of California Department of Education 10.553/10.555 Child Nutrition Cluster Award: A1960Z 7/1/22-6/30/23 Finding 2023-001—Verification Population Criteria or specific requirements Section III, P. of the grant agreement from the California Department of Education Nutrition Services Division Permanent Single Agreement, states that verification must be completed on Household meals Benefit Applications as specified by Child Nutrition Program (CNP) regulations and guidance. Local Education Agency (LEA) must select the sample by the lesser of 3% or 3000 of the approved applications on file as of October 1, selected from error prone applications. Condition While gaining our understanding of controls over verification, management noted that they rely on their internal software, Paradox, to tally the number of applications on file as of October 1, as well as any reports considered error prone. The system does not print out a report to list out all applications and management was unable to reproduce any report to show the total number of applications to agree to the tallied applications from the Paradox system as of October 1. The Paradox system is based on the application entered into the system by the SNP Personnel. Cause Management has become reliant on its system to perform controls. Effect or potential effect The wrong number of students could be verified resulting in noncompliance. Questioned costs None. Context Although we were able to see that management did perform a verification sample, we could not get comfortable with the number of approved applications on file as of October 1 and, therefore, could not determine if management tested the required number of applications. Repeat finding No. Recommendation We recommend that SNP maintain a report of all applications from the Paradox system as of October 1 and review to ensure they have a complete population to perform their verification test. Views of Responsible Officials Management agrees with the finding. See corrective action plan.