Finding Text
Criteria: The organization must ensure that the correct costs for meals is based on children attendance and not enrollment in accordance with CFR Part 225, Cost Principles. Condition: The costs incurred for children meals were significantly more than the amount reimbursed by USDA resulting in Agency losses. Cause: The Organization incurred costs for meals based on enrollment and not attendance. The Agency was reimbursed for meals based on attendance. Effect: The Agency is not in compliance with the allowable costs principles and could lose future grant funding and could incur continued operating losses. Questioned Costs: Not determinable Recommendation: The entity should implement policies and procedures to ensure compliance with allowable costs and activities. Views of Responsible Officials: Management is in the process of implementing policies and procedures to ensure cost incurred for the delivery of meals to children are allowable and reasonable.