Finding Text
8. Criteria or specific requirement: Per Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) Subpart D, Post Federal Award Requirements Section 200.303, Internal controls, the recipient must establish, document and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Per 7 CFR Section 210.8(a), the school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. '9. Condition: Three (3) monthly claims for reimbursement reported meal counts in excess of those supported by records of the District. 10. Cause: The District's internal controls over compliance were not functioning effectively to ensure claims for reimbursement were accurately prepared. '11. Effect: The District was not in compliance with the reporting compliance requirement. '12. Questioned Costs: The following questioned costs were computed based on the excess meals claimed for reimbursement times the applicable reimbursement rate: $37 (Project No. 25-4220-00) $2,074 (Project No. 25-4210-00) '13. Context: From the population of eleven (11) monthly claims for reimbursement, a sample of four (4) claims were selected for testing. We noted three (3) months in which the claims for reimbursement reported meal counts in excess of those supported by records of the District as follows: October 2024: Actual breakfast meals served: 10,313; Breakfast meals claimed for reimbursement: 10,326. March 2025: Actual lunch meals served: 12,901; Lunch meals claimed for reimbursement: 12,911 April 2025: Actual lunch meals served: 10,087; Lunch meals claimed for reimbursement: 10,190 In addition, the District was unable to locate supporting documentation of the snack claim counts of 765 for October 2024 and 525 for April 2025, which contributed to the questioned cost total for program 25-4210-00. A statistically valid sample was not utilized. 14. Recommendation: We recommend that management review its policies and procedures and implement changes to strengthen internal control over compliance. 15. Management's response: The District agrees with the auditor's finding and recommendation.