Finding Text
Significant Deficiency/Other Non-compliance
Federal Agency
U.S. Department of Agriculture
Pass-through:
Mississippi Department of Education
Assistance Listing Numbers:
10.553 & 10.555
Program Title:
Child Nutrition Cluster
Compliance Requirement:
Activities Allowed or Unallowed;
Allowable Costs/Cost Principles.
Repeat Finding from prior year:
No
Prior Year Finding Number:
N/A
Criteria:
2 CFR Section 200.405 states “(a) A cost is allocable to a Federal award or other cost objective if the cost is assignable to that Federal award or other cost objective in accordance with the relative benefits received. This standard is met if the cost satisfies any of the following criteria:
(1) Is incurred specifically for the Federal award;
(2) Benefits both the Federal award and other work of the recipient or subrecipient and can be distributed in proportions that may be approximated using reasonable methods; or
(3) Is necessary to the overall operation of the recipient or subrecipient and is assignable in part to the Federal award in accordance with these cost principles.
Condition:
The district charged 100% of a part-time accounts payable clerk’s wages and benefits to the Child Nutrition Fund, while her duties were not 100% child nutrition related.
Context/Perspective
This finding is a result of our statistically valid random sample of forty cash disbursements for single audit purposes and the conditions cited appear to be an isolated issue.
Cause:
The cause is likely a failure monitor all cost charged to the program.
Effect:
Failure to monitor all cost charged to the federal award can result in disallowed cost being applied to the program.
Recommendation:
We recommend the School District implement controls to ensure that all supervisors review all charges to salaries and wages for agreement to approved timesheets.
Questioned Cost:
Known questioned cost, based on the results of our audit procedures, amounted to $28,006; likely questioned cost $48,779.
Views of responsible officials of the auditee:
See Auditee’s Corrective Action Plan