Finding 1159454 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-10-01

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to reporting for federal grants.
  • Impacted Requirements: The lack of documented review and approval for 1 out of 4 monthly claims violates Section 200 of the Code of Federal Regulations.
  • Recommended Follow-up: Management should establish and enforce procedures to ensure all monthly claims have documented approval before submission.

Finding Text

Finding 2024‐004: Reporting – Significant deficiency in internal control over compliance. Child Nutrition Cluster Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 1 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.

Corrective Action Plan

No. 2024-004 Subject: Reporting - Significant deficiency in internal control over compliance Name of Contact Person: Ingmar Berg, CFO Phone Number: (480) 270-5438 x1091 Anticipated Completion Date: June 30, 2025 Corrective Action: Management will implement internal controls related to documentation of approval for all monthly NSLP claims for reimbursement prior to submission. We will establish a formalized procedure to ensure that all monthly claims for reimbursement undergo documented management review and approval before submission. This procedure will clearly define the review process and designate responsible personnel for each step to maintain accountability. All reviewed and approved claims will be accompanied by signed documentation as evidence of compliance. All Food Service personnel involved in the reimbursement submission process will receive training on the new procedure to ensure understanding and adherence to the documentation requirements.

Categories

Cash Management Reporting School Nutrition Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1159447 2024-003
    Material Weakness Repeat
  • 1159448 2024-003
    Material Weakness Repeat
  • 1159449 2024-004
    Material Weakness Repeat
  • 1159450 2024-004
    Material Weakness Repeat
  • 1159451 2024-004
    Material Weakness Repeat
  • 1159452 2024-004
    Material Weakness Repeat
  • 1159453 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $190,514
84.425 Education Stabilization Fund $155,993
84.010 Title I Grants to Local Educational Agencies $61,700
10.555 National School Lunch Program $42,142
10.553 School Breakfast Program $24,549
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $15,689
84.424 Student Support and Academic Enrichment Program $6,110