Finding 1176600 (2025-001)

2025-001 U.S. Department of Agriculture Passed through the Commonwealth of Massachusetts – Department of Elementary and Secondary Education Child Nutrition Cluster – ALN 10.553, 10.555, 10.559 & 10.582 Significant Deficiency in Internal Controls Over Compliance and Other Matter Finding Criteria: Per 2 CFR section 200.437, costs incurred in accordance with the recipient’s established written policies for employee health are allowable. Condition: A journal entry was tested during the compliance audit that reclassified $50,000 of employee health costs to the school lunch fund that did not include any documentation of the costs charged to the school lunch fund and how they were allocated. Cause: The District lacks written policies and procedures for allocating employee health costs to the school lunch program and other activities of the District. Effect: The District is at risk of charging ineligible costs to the school lunch fund. Questioned Costs: None Repeat Finding from Prior Year: No. Recommendation: The District should develop written policies regarding employee health costs allocated to the school lunch program and other activities of the District. Views of Responsible Officials: Management agrees with the finding