FAC Explorer

Finding 11600 (2022-004)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-02-05
Audit: 15449
Organization: Carroll County School District (MS)
Auditor: Watkins Ward and Stafford PLLC

AI Summary

  • Core Issue: Inadequate internal controls were found in the approval process for federal fund expenditures in the Child Nutrition Cluster.
  • Impacted Requirements: Purchases were made without proper documentation, including 22 orders placed after the purchase and 10 lacking receiving documentation.
  • Recommended Follow-Up: Implement stricter controls to ensure all expenditures are authorized and supported by adequate documentation before payment.

Finding Text

Criteria Management is responsible for establishing internal controls to provide reasonable assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. Condition During our test of general disbursements charged to the Child Nutrition Cluster we noted the following: • 22 instances of a purchase order dated after the purchase occurred • 10 instances of purchases lacking proper receiving documentation. Cause Supervisory personnel were not thoroughly reviewing purchase requisitions prior to cafeteria personnel ordering goods and services for the cafeteria. Supervisory personnel were not thoroughly reviewing purchases to cafeteria to ensure the goods and services were received. Effect Lack of adequate internal controls surrounding the approval of expenditures of federal funds could result in expenditures being made that are not allowable in the Child Nutrition Program. Recommendation We recommend the district implement controls and procedures to ensure that all expenditures are properly authorized and only paid after sufficient documentation has been received to ensure that all the goods and services have been received by the school district. Views of Responsible Officials We concur with the finding and recommendation.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles School Nutrition Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 11599 2022-004
    Significant Deficiency Repeat
  • 11601 2022-004
    Significant Deficiency Repeat
  • 588041 2022-004
    Significant Deficiency Repeat
  • 588042 2022-004
    Significant Deficiency Repeat
  • 588043 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $690,148
84.425 Education Stabilization Fund $584,195
84.287 Twenty-First Century Community Learning Centers $448,764
84.010 Title I Grants to Local Educational Agencies $352,828
10.553 School Breakfast Program $224,938
84.367 Improving Teacher Quality State Grants $74,144
32.U01 The Schools and Libraries Program $61,560
84.027 Special Education_grants to States $32,644
84.048 Career and Technical Education -- Basic Grants to States $29,029
84.424 Student Support and Academic Enrichment Program $25,780
84.358 Rural Education $11,242
84.173 Special Education_preschool Grants $4,729
10.559 Summer Food Service Program for Children $2,308
10.560 State Administrative Expenses for Child Nutrition $2,179