Finding No.: 2024-004 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB, 7GU320GU3, 237GUGU3N8903 Area: Reporting Questioned Costs: $0 Criteria: The School Food Authority (SFA) must submit SF-425 Federal Financial Report quarterly related to Supply Chain Assistance fund. Further, financial reports should be traceable to accounting records that support the audited financial statements and the Schedule of Expenditures of Federal Awards. Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Conditions: 1. The following quarterly SF-425 for Supply Chain Assistance fund were not prepared and submitted during fiscal year 2024: Award # Quarter Ended 7GU320GU3 December 31, 2023 7GU320GU3 March 31, 2024 7GU320GU3 June 30, 2024 237GUGU3N8903 September 30, 2023 237GUGU3N8903 December 31, 2023 237GUGU3N8903 March 31, 2024 237GUGU3N8903 June 30, 2024 Finding No.: 2024-004, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB, 7GU320GU3, 237GUGU3N8903 Area: Reporting Questioned Costs: $0 Conditions, continued: 2. We noted variances between the expenditures reported in Financial Status Report FNS 777 against the underlying accounting records as summarized below: STATUS OF FUNDS Reported during FY24 QTR 3 - (04/01/24 - 06/30/24) Total per Expenditure Details Over (Under) Reported variance PROGRAMS/FUNCTIONS/ACTIVITIES Net outlays previously reported $7,947,328 $9,014,236 ($1,066,908) Total outlays this report period 1,434,331 2,395,557 ( 961,226) Less: Program income credits - - - Net outlays this report period (Line b minus line c) 1,434,331 2,395,557 ( 961,226) Net outlays to date (Line a plus line d) 9,381,659 11,409,793 (2,028,134) Less: Non-Federal Share of outlays - - - Total Federal share of outlays (Line e minus line f) 9,381,659 11,409,793 (2,028,134) Total unliquidated obligations 3,811,238 5,355,508 (1,544,270) Less: Non-Federal Share of unliquidated obligations shown on line h - - - Federal share of unliquidated obligations 3,811,238 5,355,508 (1,544,270) Total Federal share of outlays and unliquidated obligations 13,192,897 16,765,301 (3,572,404) Total cumulative amount of Federal fund authorized 12,239,790 12,239,790 - Unobligated balance of Federal funds ($ 953,107) ($ 4,525,511) $ 3,572,404 3. Subawards are not reported in FSRS, as follows: Transactions Tested Subaward Not Reported Dollar Amount of Tested Transactions Subaward Not Reported 2 2 $609,093 $609,093 Finding No.: 2024-004, continued Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB, 7GU320GU3, 237GUGU3N8903 Area: Reporting Questioned Costs: $0 Cause: GDOE lacks controls over compliance with applicable reporting requirements. Effect: GDOE is in noncompliance with applicable reporting requirements. No questioned cost is presented as the non-compliance was related to reporting requirements. Identified as a Repeat Finding: 2023-006 Recommendation: Responsible personnel should establish and implement controls over compliance with applicable reporting requirements relative to submitting quarterly SF-425, accurate reporting of FNS-777 and reporting subawards in FSRS.