Finding 1073896 (2022-005)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2024-09-20
Audit: 320243
Organization: Lead Academy (AL)

AI Summary

  • Core Issue: Inadequate controls led to inaccurate meal counts for USDA reimbursement, with claims unsupported by documentation.
  • Impacted Requirements: Compliance with 2 CFR 200.303 is necessary for effective internal controls over federal awards, including proper documentation for claimed meals.
  • Recommended Follow-Up: Assign a knowledgeable supervisor for the child nutrition program and implement oversight procedures for contractor services and USDA claims.

Finding Text

Sufficient controls were not in place for the current fiscal year to ensure that an accurate meal count was claimed for USDA reimbursement resulting in meal counts submitted for reimbursement not adequately supported by available documentation. The Uniform Guidance sets forth requirements for internal controls over federal programs in 2 CFR sections 200.303 that a grantee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Such controls should include preparing and maintaining documentation supporting the allowability of applicable meals claimed for reimbursement. This finding was reported in the prior year. Testing noted the following findings: Meals were served at unapproved sites. Meal counts from daily meal tallies differ from the total meals claimed for 5 of 7 months tested. There was inadequate oversight of activities and information provided by the contractor. We recommend that a knowledgeable person be assigned responsibility for oversight of the child nutrition program. We further recommend procedures be implemented to provide oversight of contractor services and information provided including a review process for the USDA claims requests. The Academy responds that it has employed a supervisor responsible for overseeing the child nutrition program and the contract with the contractor was terminated during the 2022 fiscal year. Further, the Academy began providing onsite meal service beginning with the 2022-23 school year using a new provider.

Categories

Questioned Costs Internal Control / Segregation of Duties Cash Management School Nutrition Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 497454 2022-005
    Material Weakness Repeat
  • 497455 2022-005
    Material Weakness Repeat
  • 497456 2022-005
    Material Weakness Repeat
  • 497457 2022-006
    Material Weakness
  • 497458 2022-006
    Material Weakness
  • 1073897 2022-005
    Material Weakness Repeat
  • 1073898 2022-005
    Material Weakness Repeat
  • 1073899 2022-006
    Material Weakness
  • 1073900 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $239,938
84.425 Education Stabilization Fund $232,746
10.553 School Breakfast Program $210,351
84.027 Special Education Grants to States $88,483
10.579 Child Nutrition Discretionary Grants Limited Availability $22,873
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $21,648
10.555 National School Lunch Program $16,447
84.424 Student Support and Academic Enrichment Program $15,880
84.048 Career and Technical Education -- Basic Grants to States $7,845
10.560 State Administrative Expenses for Child Nutrition $463
10.649 Pandemic Ebt Administrative Costs $298
96.001 Social Security Disability Insurance $60