Finding Text
Federal agency: U.S. Department of Agriculture Federal program title: Child Nutrition Cluster Assistance Listing Number: 10.555, 10.582 Federal Award Identification Number, Year, and Award Period: 202525N119946: 10/4/2024 - 9/30/2025 202423L160346: 10/1/2023 - 9/30/2024 202419L160346: 10/1/2023 - 9/30/2024 202524L160346: 10/4/2024 - 9/30/2025 Pass-Through Agency: N/A Pass-Through Number(s): N/A Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: From 7 CFR 210.5(d): Substantiation and reconciliation process. Each State agency shall maintain Program records as necessary to support the reimbursement payments made to school food authorities under §§ 210.7 and 210.8 and the reports submitted to FNS under this paragraph. The State agency shall ensure such records are retained for a period of 3 years or as otherwise specified in § 210.23(c). (1) Monthly report. Each State agency shall submit a final Report of School Program Operations (FNS- 10) to FNS for each month. The final reports shall be limited to claims submitted in accordance with § 210.8 of this part. For the month of October, the final report shall include the total number of children approved for free lunches, the total number of children approved for reduced price lunches, and the total number of children enrolled in participating public schools, private schools, and residential child care institutions, respectively, as of the last day of operation in October. The final reports shall be postmarked and/or submitted no later than 90 days following the last day of the month covered by the report. States shall not receive Program funds for any month for which the final report is not submitted within this time limit unless FNS grants an exception. Upward adjustments to a State's report shall not be made after 90 days from the month covered by the report unless authorized by FNS. Downward adjustments to a State's report shall always be made regardless of when it is determined that such adjustments are necessary. FNS authorization is not required for downward adjustments. Any adjustments to a State's report shall be reported to FNS in accordance with procedures established by FNS. Criteria or specific requirement (continued): Per §200.302 Financial Management, the state’s and the other non-Federal entity’s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by the terms and conditions; and tracking expenditures to establish that funds have been used in accordance with Federal statutes, regulations, and the terms and conditions of the Federal award. Further, the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements Condition: 1 out of 4 FNS-10 sampled, the Department did not accurately report statewide program participation totals on the FNS‑10, as required by 7 CFR § 210.5(d). Although underlying support was accurate, the reported amount was reported incorrectly 5 out of 5 SF-425 sampled did not have the supporting documentation or reported incorrectly for the "Federal share of expenditures" at the time the report was prepared. Questioned costs: None Context: This was identified as we tested financial reporting Cause: The Department lacks established internal controls and procedures over reporting to ensure risks of incomplete reports are mitigated Effect: The Department is not in compliance with federal regulations. Repeat Finding: No Recommendation: We recommend the Department implement effective processes and procedures to ensure reported information is accurate and aligns with underlying data Views of responsible officials: Open – Views of responsible officials and management’s planned corrective actions, timeline and designation of what employee position are responsible for meeting deadlines in the timeline.