FINDING 2024-003
Finding Subject: Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost
Principles
Summary of Finding: Material Weakness, Modified Opinion
Contact Person Responsible for Corrective Action: Linda Zaborowski, CFO
Contact Phone Number and Email Address: (219) 8...
FINDING 2024-003
Finding Subject: Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost
Principles
Summary of Finding: Material Weakness, Modified Opinion
Contact Person Responsible for Corrective Action: Linda Zaborowski, CFO
Contact Phone Number and Email Address: (219) 881-5536 lzaborowski@garycsc.k12.in.us
Views of Responsible Officials:
We concur with the finding
Description of Corrective Action Plan:
Gary Community School Corporation is committed to strengthening internal controls to ensure
compliance with federal regulations governing the Child Nutrition Cluster programs. To address the
deficiencies identified in the audit, we will implement a structured system for reviewing and approving
all financial transactions related to the food service program. Moving forward, all invoices submitted
by the Food Service Management Company (FSMC) will require detailed supporting documentation
before payment is processed. The Food Service Director will conduct thorough reviews to verify the
accuracy and allowability of costs, ensuring that only eligible expenses are charged to the program.
Additionally, a standardized checklist will be developed to confirm compliance with federal cost
principles.
To address payroll-related deficiencies, all employees whose salaries are funded by the Child
Nutrition Cluster will be required to maintain detailed time and effort records that document their work
on federal and non-federal activities. The Payroll Department will not process payments from federal
funds without proper documentation, and approval from the CFO/Food Service Director.
To prevent future occurrences of questioned costs, the Business Office Coordinator will carefully
review all FSMC invoices to verify that adequate documentation is provided, and any unallowable
costs, including sales tax, are identified and excluded before payment is made. Moving forward,
internal procedures will include a detailed verification process to ensure that only allowable costs are
charged to the program.
Anticipated Completion Date:
Gary Community School Corporation will implement this procedure by July 2025.