Finding 1172429 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-04

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 review and approval, violating federal regulations.
  • Recommended Follow-Up: Management should establish procedures to ensure all monthly claims have documented approval 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 School’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

Finding 2025-001: Reporting – Significant deficiency in internal controls over compliance. Management Response: The District’s Child Nutrition Assistant Director (AD) 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 AD 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 AD receives approval via email from the COO, the email will be printed or digitally saved with the claims reports. The AD 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

  • 1172427 2025-001
    Material Weakness Repeat
  • 1172428 2025-001
    Material Weakness Repeat
  • 1172430 2025-002
    Material Weakness Repeat
  • 1172431 2025-002
    Material Weakness Repeat
  • 1172432 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $430,350
10.555 NATIONAL SCHOOL LUNCH PROGRAM $401,594
84.425 EDUCATION STABILIZATION FUND $153,032
84.027 SPECIAL EDUCATION GRANTS TO STATES $123,119
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $111,528
10.553 SCHOOL BREAKFAST PROGRAM $101,587
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $17,954