Finding Text
Condition: Expenditures for the Child and Adult Care Food Program were incorrectly reported as expenditures to other nutrition programs. Criteria: According to 2 CFR §200.303, Internal Controls, non-Federal entities must establish and maintain effective internal control over federal awards that provides reasonable assurance the entity is managing the award in compliance with federal statutes, regulations, and the terms and conditions of the award. Further, under 2 CFR §§200.400, Policy Guide, and 200.405, Allocable Costs, costs are to be adequately supported as charged to the Federal award and must be necessary, reasonable, allocable, and conform to any limitations or exclusions set forth in federal regulations or award terms. Cause: The School did not understand the need to properly identify expenditures to the appropriate formula grant nutrition program. Effect: Although expenditures were properly reported collectively over all the nutrition programs, expenditures for specific nutrition programs were incorrectly reported for various separately funded nutrition programs. Recommendation: We recommend that the School properly identify and report nutrition program expenditures by program. Management’s Response: The School’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.