FAC Explorer

Finding 1161428 (2024-009)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-10-27
Audit: 371295
Organization: City of Auburn, Maine (ME)
Auditor: RUNYON KERSTEEN OUELLETTE

AI Summary

  • Core Issue: Lack of internal controls for reviewing monthly claims for federal meal reimbursements.
  • Impacted Requirements: Claims must accurately reflect daily lunch counts for free, reduced price, and paid meals.
  • Recommended Follow-Up: Implement new procedures for fiscal year 2025 to ensure claims are supported by proper documentation before submission.

Finding Text

2024-009 U.S. Department of Agriculture, For the period July 1, 2023, through June 30, 2024, Assistance Listing #10.553, 10.555, 10.556, 10.559, and 10.582 - Internal Controls over Child Nutrition Cluster Criteria: The School Department receives federal reimbursement for free and reduced price meals provided to children at established reimbursement rates. Monthly claims for reimbursement must be based on lunch counts taken daily at the point of service, which correctly identify the number of free, reduced price, and paid lunches served to eligible students. Condition: There was no internal control process in place to ensure the monthly claim details are reviewed prior to submission to the CNPWeb system. A new control process has been created for fiscal year 2025, but this was not in place during fiscal year 2024. Cause: The Business Manager approves all monthly claims in the CNPWeb system prior to submission to the State. However, the School Department does not have a procedure to provide supporting claim documentation to the Business Manager to verify the accuracy of the monthly claim. Effect: Errors in monthly claims may be incorrect and may not be detected and corrected in a timely basis resulting in potential questioned costs. Recommendation: We recommend the School Department follow their newly established policies and procedures for fiscal year 2025 to ensure the Business Manager has adequate supporting documentation to verify monthly nutrition claims before they are submitted to the State. Questioned Costs: None.

Corrective Action Plan

Management Response/Corrective Action Plan: Effective November 2024, a new procedure is in place to verify school lunch counts are reported accurately. The School Nutrition Director documents data in spreadsheets and uses this for completing reimbursement requests. The Business Manager also reviews the provided spreadsheets before approving claims for reimbursement.

Categories

School Nutrition Programs Cash Management

Other Findings in this Audit

  • 1161422 2024-009
    Material Weakness Repeat
  • 1161423 2024-009
    Material Weakness Repeat
  • 1161424 2024-009
    Material Weakness Repeat
  • 1161425 2024-009
    Material Weakness Repeat
  • 1161426 2024-009
    Material Weakness Repeat
  • 1161427 2024-009
    Material Weakness Repeat
  • 1161429 2024-008
    Material Weakness Repeat
  • 1161430 2024-008
    Material Weakness Repeat
  • 1161431 2024-008
    Material Weakness Repeat
  • 1161432 2024-010
    Material Weakness Repeat
  • 1161433 2024-010
    Material Weakness Repeat
  • 1161434 2024-010
    Material Weakness Repeat
  • 1161435 2024-011
    Material Weakness Repeat
  • 1161436 2024-011
    Material Weakness Repeat
  • 1161437 2024-006
    Material Weakness Repeat
  • 1161438 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds $3.17M
84.425 COVID-19 - Elementary and Secondary School Emergency Relief III $2.28M
20.205 Highway Planning and Construction - Mill Street and Main Street $1.96M
14.218 Community Development Block Grant - Entitlement $1.55M
84.010 Title IA $1.07M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $949,284
84.027 Special Education - Grants to States (IDEA, Part B) $708,495
20.205 Highway Planning and Construction - Hotel Rd $539,369
10.553 SCHOOL BREAKFAST PROGRAM $313,345
14.905 LEAD HAZARD REDUCTION DEMONSTRATION GRANT PROGRAM $230,209
84.367 Title IIA - Supporting Effective Instruction $225,545
84.287 21st Century - Community Learning Center $204,260
14.239 COVID-19 - Home Investment Partnership Program $165,200
84.425 COVID-19 - Literacy Grant $143,570
14.239 Home Investment Partnership Program $120,454
10.555 Donated Commodities $117,497
84.424 Title IV - Student Support and Academic Enrichment $78,041
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $77,002
10.555 State Administrative Expenses for Child Nutrition: Supply Chain Assistance $74,210
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $68,647
16.922 EQUITABLE SHARING PROGRAM $59,073
84.425 COVID-19 - Multilingual Learners Experiencing Homelessness $58,877
14.218 COVID-19 - Community Development Block Grant - Entitlement $55,722
84.425 COVID-19 - Elementary and Secondary School Emergency Relief II $53,649
97.067 HOMELAND SECURITY GRANT PROGRAM $29,560
20.205 Highway Planning and Construction - Turner Street Safety $27,758
84.365 Title III - Language Acquisition $26,064
84.173 Special Education - Preschool Grants (IDEA Preschool) $23,614
20.205 Highway Planning and Construction - Traffic Signals $21,916
10.558 Child and Adult Care Food Program $20,736
20.205 Highway Planning and Construction - Turner Dennison $17,988
84.002 Adult Basic Education $15,502
20.600 Speed Enforcement Program $11,512
84.010 Title IA - Program Improvement $10,961
16.607 Bullet Proof Vest $10,865
10.675 Project Canopy: Urban and Community Forestry Program $7,876
84.425 COVID-19 - Homeless Children and Youth II $7,784
16.738 Edward Byrne Justice Assistance Grant $6,458
10.649 COVID-19 - Pandemic EBT Administrative Costs: SNAP $5,224
10.555 After School Snack Program $953
14.218 Community Development Block Grant - Entitlement - School Department $911