Finding 1147033 (2024-001)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-07-08

AI Summary

  • Core Issue: The School District lacks proper review processes for payments to the food service management company, risking unallowable costs.
  • Impacted Requirements: Compliance with 2 CFR section 200.303 is not being met, which mandates internal controls over Federal awards.
  • Recommended Follow-up: The School District should implement a review of all invoices to ensure reimbursements are for allowable activities and costs under the Nutrition Cluster Federal Program.

Finding Text

2 CFR section 200.303 requires that non-Federal entities receiving Federal awards establish and maintain internal control over the Federal awards 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 awards. The School District employs a food service management company to oversee and conduct the activities of the food service department. The School District paid a lump sum to the food service management company each month, but there was no evidence that the School District reviewed any of the supporting invoices to verify amounts paid were for allowable activities and costs. Failure to have policies and procedures over allowable activities and allowable costs could result in unallowable costs and activities being charged to the federal program. The School District should review all detailed invoices from their food service management company. The School District should ensure to only reimburse the food service management company for allowable activities and costs for the Nutrition Cluster Federal Program.

Categories

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 570587 2024-001
    Material Weakness
  • 570588 2024-001
    Material Weakness
  • 570589 2024-001
    Material Weakness
  • 570590 2024-001
    Material Weakness
  • 570591 2024-001
    Material Weakness
  • 570592 2024-001
    Material Weakness
  • 1147029 2024-001
    Material Weakness
  • 1147030 2024-001
    Material Weakness
  • 1147031 2024-001
    Material Weakness
  • 1147032 2024-001
    Material Weakness
  • 1147034 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $3.20M
10.553 School Breakfast Program $300,660
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $211,034
21.027 Coronavirus State and Local Fiscal Recovery Funds $195,511
10.555 National School Lunch Program $123,693
84.424 Student Support and Academic Enrichment Program $70,610
10.582 Fresh Fruit and Vegetable Program $61,254
84.010 Title I Grants to Local Educational Agencies $33,496
84.173 Special Education Preschool Grants $8,331
84.027 Special Education Grants to States $6,687