Finding Text
Deficiency in Internal Control and Compliance
Federal Program
Child Nutrition Cluster (AL 10.553, 10.555, 10.559)
Reporting
Criteria
Federal compliance requirements state that auditors are to trace amounts reported in a financial
report to the accounting records. Furthermore, a system of internal control has all reports
reviewed and approved before they are submitted for reimbursement.
Condition
During testing of the District’s reimbursement reports, we noted the District over submitted for
meals served and there is no review or approval of monthly reimbursement reports before
submission.
Questioned Costs
Not Applicable
Context
We sampled 3 months of reports submitted for reimbursement in the food service department.
We noted in one month that the district over reported 67 breakfasts and 86 lunches. During
internal control inquiry, we noted that there is no formal review and approval before a report is
submitted for reimbursement.
Cause
Management oversight.
Effect
The district is at risk of errors when requesting reimbursement for meals served.
Repeat Finding
No.
Recommendation
The District should implement policies and procedures to ensure reports submitted are
accurate.
Views of Responsible Officials
The District agrees with the recommendation.