FAC Explorer

Finding 1206441 (2025-011)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-04-12
Audit: 398464
Organization: Edgecombe County Board of Education (NC)
Auditor: ANDERSON SMITH & WIKE PLLC

AI Summary

  • Core Issue: The District overcharged the Child Nutrition Program by $314,388, violating state limits on indirect costs.
  • Impacted Requirements: North Carolina law caps indirect costs for the program at 8% of allowable expenditures.
  • Recommended Follow-Up: Management should establish and enforce controls to prevent future overcharges on indirect costs.

Finding Text

SIGNIFICANT DEFICIENCY / NON-COMPLIANCE US DEPARTMENT OF AGRICULTURE AWARD: CHILD NUTRITION CLUSTER Allowable costs/cost principles Criteria: North Carolina General Statute 115C-450 limits indirect costs charged to the Child Nutrition Program to a maximum of 8% of allowable expenditures. Condition: The District overcharged the Child Nutrition Program by $314,388. Effect: The District overstated revenue in the Other Special Revenue Fund by $314,388 leading to an overstatement of available resources. Cause: Insufficient oversight by management. Identification of a repeat finding: This is not a repeat finding from the immediate previous audit. Questioned Cost: None. A liability has been recorded to reimburse the Child Nutrition Program. Recommendation: We recommend that management implement and enforce controls to ensure that indirect costs charged to the Child Nutrition Program do not exceed allowable limits. Management Response: The Board agrees with this finding and recommendation.

Corrective Action Plan

Finding 2025-11 Name of Contact Person: Dena Howell, Finance Officer Corrective Action Plan: Management intends to implement controls to ensure the Child Nutrition program is not charged indirect costs in excess of the allowable limit. Proposed Completion Date: As soon as possible.

Categories

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 1206436 2025-011
    Material Weakness Repeat
  • 1206437 2025-011
    Material Weakness Repeat
  • 1206438 2025-011
    Material Weakness Repeat
  • 1206439 2025-011
    Material Weakness Repeat
  • 1206440 2025-011
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $5.27M
84.027 SPECIAL EDUCATION GRANTS TO STATES $2.40M
10.553 SCHOOL BREAKFAST PROGRAM $1.23M
10.855 DISTANCE LEARNING AND TELEMEDICINE LOANS AND GRANTS $685,357
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $538,993
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $278,561
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $208,915
84.358 RURAL EDUCATION $193,282
12.000 ISSUE OF DEPARTMENT OF DEFENSE EXCESS EQUIPMENT $175,731
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $140,356
84.011 MIGRANT EDUCATION_STATE GRANT PROGRAM $137,385
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $123,471
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $67,198
84.425 EDUCATION STABILIZATION FUND $57,375
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $43,823
32.009 EMERGENCY CONNECTIVITY FUND PROGRAM $41,172
93.235 TITLE V STATE SEXUAL RISK AVOIDANCE EDUCATION (TITLE V STATE SRAE) PROGRAM $39,687
10.555 NATIONAL SCHOOL LUNCH PROGRAM $1,787