Finding 1081205 (2023-001)

Activities Allowed or Unallowed & Allowable Costs/Cost Principles Federal Program: Child and Adult Care Food Program (ALN 10.558) Federal Agency: U.S. Department of Agriculture Federal Award Year: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Under the Uniform Guidance, nonfederal entities 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our review of the federal program, we determined that the Organization lacks internal controls over expenditures. Cause: The Organization does not have detection and prevention procedures. Effect: Without proper internal controls, the Organization cannot prevent or detect instances of noncompliance with grant requirements. Questioned Costs: $50,633 Recommendation: We recommend the organization adhere to the Uniform Guidance and establish internal controls to ensure proper authorization and approvals of expenditures. Management’s views and Corrective Action Plan: Management agrees with finding. See Corrective Action Plan on page 21.