Finding Text
U.S. Department of Agriculture
Passed through Illinois Department of Education, Minnesota Department of Education, and North Dakota Department of Education
Child Nutrition Cluster:
School Breakfast Program, 10.553
National School Lunch Program, 10.555
Summer Food Service Program for Children, 10.559
U.S. Department of Education
Research and Development Cluster:
Federal Assistance Listing # 84.215J, Innovative Approaches to Literacy; Promise Neighborhoods; and Full-Service Community Schools
Preparation of Consolidated Schedule of Expenditures of Federal Awards
Material Weakness in Internal Control over Compliance
Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (consolidated schedule) and accompanying notes to the consolidated schedule.
Condition: The Organization has a process for preparing and reviewing the consolidated schedule; however, the controls did not prevent material adjustments to the consolidated schedule.
Cause: The Organization has a process for preparing the consolidated schedule; however, the controls did not operate as designed.
Effect: The condition may affect the Organization’s ability to record, process, summarize, and report federal expenditure information consistent with the assertions of management in the consolidated financial statements on a timely basis.
Recommendation: A thorough review of the Schedule of Expenditures of Federal Awards should take place prior to the beginning of the audit to ensure that generally accepted accounting principles have been followed, proper cut-off of transactions has occurred, and there are no adjustments to be made to the Schedule of Expenditures of Federal Awards.
Views of Responsible Officials: Management agrees with this finding.