Finding Text
Finding 2025-004 Lack of Internal Controls over Reporting Federal Agency: U.S. Department of Agriculture, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Award Year: 2025 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Program requirements state that each month’s claim for reimbursement and all data used in the claims review process must be maintained on file. Accurate records must be maintained to justify all meals claimed and documenting that all program funds were spent only on Child Nutrition Program costs. Condition/Context: The District did not adhere to proper recordkeeping requirements specified in the program requirements. During our review of claim reports filed with the State of Alaska, we noted that two of three reports tested lacked sufficient records to substantiate the underlying report figures. Cause: Lack of internal control over reporting. Effect: Failure to follow compliance reporting requirements could result in loss of federal funding. Questioned Costs: Actual and likely questioned costs are below the reporting threshold of $25,000. Repeat finding: This is not a repeat finding, therefore we believe it to be an isolated instance. Recommendation: We recommend that management complies with all reporting requirements and implements additional internal control procedures over recordkeeping and reporting.