Finding Text
Food Service Contract - Criteria: Payments to vendors are required to be supported by the contract and in accordance with allowable cost principles. Condition: The District has a contract with a food service management company to operate its food service program. Our review of the procedures noted the following: * - There does not appear to be procedures in place to ensure the propriety of the labor amount reimbursed to the food service management company by the District. * - The District paid the food service management company from invoices which did not methematically compute by several thousand dollars. * - The District does not reconcile the dollar equivalent of the number of meals paid to the food service management company with the number of meals served based on the District's records. Cause: The District has not implemented procedures to ensure the contract and payment terms with the food service management company are complied with. Effect: The lack of established polcies and procedures resulted in the issues as noted above. Recommendation: The District should implement procedures to ensure the contract and payment terms with the food service management company are complied with. Response and corrective action planned: We have revamped our polices and procedures in relation to the above issues. Conclusion: Response acknowledged.