Finding Text
2024-005 Material Weakness in Internal Control Over Eligibility – WIC Special Supplemental Nutrition Program for Women, Infants, and Children (10.557) Criteria: The District’s internal control structure should ensure that only eligible applicants participate into the program. Condition: During the audit, it was identified partial of the associated support documents could not be located for two out of sixty tested participants. This testing was performed to evaluate the District’s controls over maintaining federal program eligibility files; as the participants were served by the program, the finding relates to document maintenance and has no direct impact on federal expenditures. Cause: The District lacks a formal review of maintaining all of the associated documentation for review purpose. This deficiency was compounded by the significant turnover in key accounting and finance personnel identified in the prior year, which prevented the District to properly review the processes. Effect: The associated information for the participants could be incorrectly reported. Recommendation: We recommend that the District develop and implement a formal review process. Management’s Response: Management acknowledges the finding and is committed to strengthening its review process. Questioned Costs: None. The finding relates to a failure in the control process for maintaining participant documentation. No unauthorized expenditures were identified. Recurring Finding: No. (New finding for FY 2024).