Finding Text
FINDING 2024-004
Information on the federal program:
Subject: Child Nutrition Cluster - Reporting
Federal Agency: Department of Agriculture
Federal Program: School Breakfast Program, National School Lunch Program
Assistance Listing Number: 10.553, 10.555
Federal Award Numbers and Years (or Other Identifying Numbers): FY 22-23, FY 23-24
Pass-Through Entity: Indiana Department of Education
Compliance Requirement: Reporting
Audit Finding: Material Weakness, Other Matters
Criteria: 2 CFR section 200.303 states in part:
"The non-Federal entity must:
(a) Establish and maintain effective internal control over Federal award that provides reasonable assurance
that the non-Federal entity is managing the Federal awards 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: An effective internal control system was not in place at the School Corporation in order to
ensure compliance with requirements related to the grant agreement and the cash management
compliance requirement.
Cause: The School Corporation's management had not developed a system of internal controls to ensure
compliance with the reporting requirements.
Effect: The failure to establish an effective internal control system placed the School Corporation at risk of
noncompliance with the grant agreement and the compliance requirements. A lack of segregation of duties
within an internal control system could have also allowed noncompliance with the compliance requirements
and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight,
reviews, and approvals over the activities of the programs.
Questioned Costs: $20,650.57 net overstatement of claimed meals
Context: In a sample of 5 monthly claims for reimbursement selected for testing, the following compliance
exceptions were noted:
Management failed to submit the April 2023 claim for reimbursement in a timely manner (within 90
days) to the IDOE and was not reimbursed for meals served as a result.
For the other 5 claims tested, the number of meals claimed did not agree to the supporting meal
system reports. There was a gross overstatement of meals claimed of $21,188.92 and a gross
understatement of meals claimed of $538.35 resulting in a net over-reimbursement of $20,650.57.
We noted that the School Corporation has a secondary review control in place designed to review claims
prior to submission to the IDOE. However, the control was not operating effectively to detect and prevent
errors in the amount claimed for reimbursement.
Identification as a repeat finding, if applicable: No.
Recommendation: We recommended that the School Corporation's management review internal controls
in place and ensure the meal count data submit for reimbursement agrees to underlying meal count data
obtained from the food service software.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding
and has prepared a corrective action plan.