Finding 1172402 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-04
Audit: 385496
Organization: Village Tech Schools, Inc. (TX)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance for the Child Nutrition Cluster reporting.
  • Impacted Requirements: Monthly claims for reimbursements lacked documented management review and approval, violating federal regulations.
  • Recommended Follow-Up: Management should establish 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 10.553/10.555Criteria: 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: The School did not have a standard procedure in place to document management’s review and approval for monthly claims for reimbursements. Effect: The Organization’s reporting of monthly claims for reimbursement are not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None. Recommendation: Management should implement controls to ensure related documentation of approval for all monthly claims for reimbursement prior to submission.

Corrective Action Plan

Subject: Management response to Fiscal Year 2025 Audit Findings The management of Village Tech Schools acknowledges receipt of the following findings for the FY25 audit and has developed a corrective action plan response to address the findings. Finding 2025-001: Reporting – Significant deficiency in internal controls over compliance. Management Response: The District’s Child Nutrition Supervisor (CNS) prepared the claims data submitted into the Tx-UNPS System to receive Child Nutrition federal funding. The claims data was submitted without management approval. The District will implement procedures to ensure that monthly claim reports are reviewed by the Chief Operations Officer (COO) prior to being submitted into Tx-UNPS System. The CNS will prepare the claims report documentation, which includes the point of sale and attendance reports. The claims report and supporting documentation will be emailed to the COO. Once the reports are reviewed and determined to be accurate, the COO will email approval. Once the CNS receives approval via email from the COO, the email will be printed or digitally saved with the claims reports. The CNS will submit claims data into the Tx-UNPS System and print the NSLP Claim for Reimbursement Summary. The Summary will be sent to the COO for confirmation. The new process will begin in October 2025.

Categories

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

Other Findings in this Audit

  • 1172401 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $248,031
10.555 NATIONAL SCHOOL LUNCH PROGRAM $232,109
84.027 SPECIAL EDUCATION GRANTS TO STATES $199,142
10.553 SCHOOL BREAKFAST PROGRAM $37,591
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $32,416
84.425 EDUCATION STABILIZATION FUND $8,887
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $7,754
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $582