Finding 1172050 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-03
Audit: 385161
Organization: Nyos Charter School, Inc. (TX)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance for Child Nutrition Cluster reporting.
  • Impacted Requirements: Monthly claims for reimbursements lacked documented management review and approval, violating federal regulations.
  • Recommended Follow-Up: Management needs to create and enforce procedures to ensure all claims are reviewed and approved before submission.

Finding Text

Finding 2025-001: Reporting – Significant deficiency in internal controls over compliance. Child Nutrition Cluster ALN 10.555/10.553 Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance for all required reporting submissions. Condition: During reporting testing for federal grants, 4 out of 4 monthly claims for reimbursements did not have documented support of review and approval prior to the claim being submitted. Cause: NYOS did not have a standard procedure in place to document management's review and approval for monthly claims for reimbursements. Effect: NYOS’ reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned costs: None. Recommendation: Management should design and implement controls to ensure prior approval of reporting claims are documented. Management’s response: See corrective action plan.

Corrective Action Plan

Finding 2025-001, Reporting- Significant deficiency in internal controls over compliance Cause: The finding resulted from the lack of a formalized, documented review process to verify the accuracy of claim data between Skyward, PrimeroEdge, and TXUNPS. Historically, the claim reporting relied on single-entry verification without a defined cross-check procedure or document retention system to confirm alignment across platforms. Corrective Action: NYOS Charter School has implemented a new monthly verification process to ensure accuracy and transparency in the meal count reporting workflow. - The PEIMS Manager will generate the Average Daily Attendance (ADA) report from Skyward each month. - The Food Service Manager will use this report to enter claim data into PrimeroEdge. - The Director of Operations will then cross-reference the claim information from PrimeroEdge with the ADA report from Skyward before entering final claim data into TXUNPS. - Copies of the ADA report, the PrimeroEdge claim summary, and the TXUNPS submission confirmation will be downloaded and stored in the Food Services Google Drive for audit documentation and ongoing internal control review. - Staff involved in this process will receive annual training on verification procedures, documentation standards, and data integrity best practices. Timeline: Updated verification process implemented in October 2025; full rollout and training completed by December 2025. Responsible Party: - Chief of Operations & HR -Director of Operations - PEIMS Manager - Food Service Manager Monitoring: Quarterly internal reviews will be conducted by the Chief of Operations & HR to ensure consistent application of the cross-verification process and proper retention of supporting documentation in the Food Services Google Drive.

Categories

Cash Management Reporting School Nutrition Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1172049 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $232,136
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $186,316
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $143,550
32.009 EMERGENCY CONNECTIVITY FUND PROGRAM $132,336
10.553 SCHOOL BREAKFAST PROGRAM $65,640
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $45,801
84.027 SPECIAL EDUCATION GRANTS TO STATES $40,609
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $36,158
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $25,569
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $12,025
84.369 GRANTS FOR STATE ASSESSMENTS AND RELATED ACTIVITIES $2,727
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $1,428