Finding Text
SA-2024-04 - SIGNIFICANT DEFICIENCY
FEDERAL AWARD PROGRAM: 10.553, 10.555, 10.559 Child Nutrition Cluster
SPECIFIC REQUIREMENT: Federal reimbursement claims are required to be recorded to the correctfiscal year in the general ledger.CONDITION: We noted in our testing of NSLP reimbursements, the District recorded the May 2024 and
June 2024 claims to the incorrect fiscal year.
CRITERIA: NSLP claims should be recorded in the correct fiscal year.
EFFECT: Without controls in place to make sure NSLP claims are recorded in the correct fiscal year, there
exists the possibility of material misstatement to the financial statement and non compliance to the grant.
CAUSE: The finance office experienced turn over in the fiscal year under audit.
RECOMMENDATION: We recommend the District record reimbursements in the correct fiscal year.
VIEWS OF RESPONSIBLE OFFICIALS: Reimbursements from the state for meal claims for the months
of May and June were received in July 2024 (in the new fiscal year). Due to turnover in the District's
business office, they were recorded when they were received (as revenue) rather than accounts receivable.
Moving forward, the District will recognize meal reimbursement revenue in the fiscal year that it is for, and
the proper amounts will be applied to the proper accounts, and confirmed via multi-step review. This will
take affect starting in fiscal year 24-25.