Finding 1080141 (2023-007)

Material Weakness
Requirement
ABL
Questioned Costs
-
Year
2023
Accepted
2024-10-25
Audit: 325909
Organization: City of Auburn, Maine (ME)

AI Summary

  • Core Issue: The School Department overstated breakfast meal counts by 1,000 meals and used estimated payroll hours for the Fresh Fruit and Vegetable Program.
  • Impacted Requirements: Monthly claims must be based on accurate meal counts and payroll charges must reflect actual work performed.
  • Recommended Follow-Up: Establish policies to ensure the Business Manager receives supporting documentation for claims and that employees document their time accurately.

Finding Text

2023-007 U.S. Department of Agriculture, For the period July 1, 2022 through June 30, 2023, Assistance Listing #10.553, 10.555, 10.556, 10.559, and 10.582 - Internal Controls over Child Nutrition Cluster Criteria: The School Department receives federal reimbursement for free and reduced price meals provided to children at established reimbursement rates. Monthly claims for reimbursement must be based on lunch counts taken daily at the point of service, which correctly identify the number of free, reduced price, and paid lunches served to eligible students. In addition, the School Department participates in the Fresh Fruit and Vegetable Program which provides reimbursement of fresh fruit and vegetable purchases and related operational program costs. Charges for salaries and wages to the program must be based on records that accurately reflect the work performed. Condition: The April claim reimbursement form overstated breakfast meal counts by 1,000 meals, which comprised 7% of total meals claimed. In addition, operational and administrative payroll costs charged to the Fresh Fruit and Vegetable Program were based on estimated hours worked, rather than actual time and effort records. Cause: The Business Manager approves all monthly claims in the CNPWeb system prior to submission to the State. However, the School Department does not have a policy to provide supporting claim documentation to the Business Manager to verify the accuracy of the monthly claim. In addition, the School Department does not have policies and procedures that provide reasonable assurance that payroll charges to the Fresh Fruit and Vegetable Program are accurate, allowable, and properly allocated. Effect: Errors in monthly claims may not be detected and corrected in a timely basis resulting in potential questioned costs. Unsupported payroll charges may not meet cost principal requirements resulting in potential questioned costs. Recommendation: We recommend the School Department establish policies and procedures that ensure the Business Manager has adequate supporting documentation to verify monthly nutrition claims before they are submitted to the State. We also recommend that policies and procedures be established to ensure employees allocating their time to the Fresh Fruit and Vegetable Program complete documentation as required by 2 CFR 200.430(i). Likely Questioned Costs: None.

Categories

School Nutrition Programs Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 503696 2023-007
    Material Weakness
  • 503697 2023-007
    Material Weakness
  • 503698 2023-007
    Material Weakness
  • 503699 2023-007
    Material Weakness
  • 503700 2023-007
    Material Weakness
  • 503701 2023-008
    Material Weakness
  • 503702 2023-008
    Material Weakness
  • 503703 2023-008
    Material Weakness
  • 503704 2023-006
    Material Weakness
  • 1080138 2023-007
    Material Weakness
  • 1080139 2023-007
    Material Weakness
  • 1080140 2023-007
    Material Weakness
  • 1080142 2023-007
    Material Weakness
  • 1080143 2023-008
    Material Weakness
  • 1080144 2023-008
    Material Weakness
  • 1080145 2023-008
    Material Weakness
  • 1080146 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $1.74M
84.425 Covid-19 - Elementary and Secondary School Emergency Relief III $1.34M
20.205 Highway Planning and Construction - Mill Street and Main Street $1.10M
84.027 Special Education - Grants to States (idea, Part B) $1.07M
84.010 Title Ia $1.06M
84.425 Covid-19 - Elementary and Secondary School Emergency Relief II $1.03M
10.555 National School Lunch Program $1.01M
10.553 School Breakfast Program $300,532
14.905 Lead Hazard Reduction Demonstration Grant $284,020
14.218 Community Development Block Grant - Entitlement $262,804
84.367 Title Iia - Supporting Effective Instruction $234,228
84.287 21st Century - Community Learning Center $216,431
20.205 Highway Planning and Construction - Traffic Signals $212,854
10.555 Donated Commodities $181,252
10.559 Summer Food Service Program $117,031
14.239 Covid-19 - Home Investment Partnership Program $116,681
14.239 Home Investment Partnership Program $102,063
84.425 Covid-19- Multilingual Learners Experiencing Homelessness $92,292
10.560 State Administrative Expenses for Child Nutrition: Supply Chain Assistance $87,991
14.218 Covid-19 - Community Development Block Grant - Entitlement $87,889
93.575 Covid-19 - Childcare and Development Block Grant $69,742
10.582 Fresh Fruit and Vegetable Program $63,736
97.044 Assistance to Firefighters Grant $49,570
97.067 Homeland Security $48,661
84.424 Title IV - Student Support and Academic Enrichment $25,197
84.425 Covid-19 - Homeless Children and Youth II $24,787
84.173 Special Education - Preschool Grants (idea Preschool) $23,536
84.002 Adult Basic Education $22,475
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $18,743
97.036 Disaster Grants - Public Assistance $18,743
84.365 Title III - Language Acquisition $13,681
10.558 Child and Adult Care Food Program $10,222
16.922 Equitable Sharing Program $7,716
14.218 Community Development Block Grant - Entitlement - School Department $7,386
16.607 Bullet Proof Vest $7,195
16.738 Edward Byrne Justice Assistance Grant $5,100
10.649 Covid-19 - Pandemic Ebt Administrative Costs: Snap $5,024
20.600 Evidence Based Impaired Driving (oui Grant) $4,356
20.600 Speed Enforcement Program $3,603
16.727 Enforcing Underage Drinking Laws $2,560
84.010 Title Ia - Program Improvement $1,814
84.173 Covid-19 - Special Education - Preschool Grants (idea Preschool) $1,471
20.600 Pedestrian Safety Grant $917
20.616 Hv Distracted Driving Enforcement Project $604
20.205 Highway Planning and Construction - Hotel Rd. $483