Finding 1074967 (2023-003)

CFDA 10.553 and 10.555—United States Department of Agriculture, NutritionCluster passed through the New York State Dept. of Education, Child Nutrition Administration Condition: Food purchasing for program and non-programmatic purposes was not appropriately segregated. Journal entries were required to correct for these errors. Criteria: According to CFR regulations, the purchasing of program food must be separated from both other food programs and non-funded school refreshments. Cause: Lack of proper scrutiny of the use of food purchases in relation to the menu requirements. Effect: While excess costs were not charged to the program, the error is indicative of deficiencies in the relation of program purchases to menu requirements. Perspective: Applicable to the Breakfast and Lunch programs. Auditor Recommendation: All purchases for non-program foods should be on separate invoices and management must be more careful in the approval process for program food purchases. All program foods should be paid for separately using program bank accounts. Reviews of Responsible Officials: Response per corrective action plan on page 25-26.