Finding Text
Finding 2025-002: Allowable cost-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 with allowable cost principles.Condition: During allowable cost testing for nonpayroll expenditures 1 out of 9 samples tested did not have documentation of prior approval for the expense.Cause: Control activities were not fully documented in accordance with the School’s internal control procedures over compliance.Questioned Costs: None.Recommendation: Management should ensure that controls are followed related to documentation of prior approval for expenses.