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
Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting
Material Weakness in Internal Control over Compliance
Grant Award Number: Affects all grant awards under assistance listing 10.553, 10.555, and 10.559 on the Consolidated Schedule of Expenditures of Federal Awards.
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: There was no formal documentation of review and approval of seven invoices selected for testing.
There was no formal documentation of review and approval for 31 meal count sheets selected for testing.
There was no formal documentation of review and approval prior to submission for ten reimbursement requests selected for testing.
Cause: The Organization has designated internal controls over these areas; however, documentation was not maintained to support the performance of the controls.
Effect: Failure to perform an independent review of expenses and reporting could result in a reasonable possibility that the Organization would not detect errors in the normal course of performing duties and correct them in a timely manner.
Questioned Costs: None reported.
Context/Sampling: 60 invoices out of 604 total were selected for testing which made up $240,437 of $572,161 federal awards.
60 meal count sheets out of 144 total were selected for testing which made up $168,110 of $572,161 federal awards.
16 requests for reimbursement submissions out of 48 total were selected for testing which made up $63,141 of $572,161 federal awards.
Repeat Finding from Prior Year: No
Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, and reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements.
Views of Responsible Officials: Management agrees with this finding.