Finding 11918 (2023-001)

Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Education Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting, Special Tests and Provisions Criteria In accordance with 2 CFR 200.303, management is responsible for establishing and maintaining internal controls over federal programs. This includes the development of a system to ensure documentation is maintained to support all reported figures and counts as it relates to federal programs, including the Child Nutrition Cluster. Condition The District lacked proper internal controls over supporting documentation. Cause The director of the program left in August 2023 and there was not an adequate filing system in place to ensure all files would be retained. Effect The District could not support the figures reported on the meal reimbursement claim and may not have been reimbursed for the proper number of meals served. The District may not have filed the verification report on time. Context During our review of the child nutrition cluster we noted the following:  Breakfast meals claimed on the January 2023 reimbursement claim could not be agreed to supporting documentation. Meals reported on the claim were less than the support.  It could not be determined if the Verification Summary Report was submitted by February 1. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure all supporting documentation is retained. Views of Responsible Officials See Corrective Action Plan.