Finding Text
Finding No. 2023-005 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 National School Lunch Program (NSLP) Federal Award No.: 217NMNM3N1174, 227NMNM3N1174, 237NMNM3N1174 Area: Reporting Questioned Costs: $-0- Criteria: In accordance with 7 CFR Section 210.8, to be entitled to reimbursement under this part, each school food authority shall submit to the State agency, a Claim for Reimbursement that must include data in sufficient detail to justify the reimbursement claimed and to enable the State agency to provide the Report of School Program Operations required under § 210.5(d). Such data must include, at a minimum, the number of free, reduced price, and paid lunches and after school snacks served to eligible children. The claim must be signed by a school food authority official. In addition, School food authorities shall maintain on file, each Claim for Reimbursement and all data used in the claims review process, by school. Records shall be retained as specified in § 210.23(c) of this part. School food authorities shall make this information available to the Department and the State agency upon request. In accordance with the applicable reporting requirements, an SF-425 report is required to be accompanied by supporting accounting records to verify the accuracy of the reported amounts. Condition: 1. Of five SF-425 reports that were due for submission during FY2023, the underlying accounting records supporting all five (or 100%) SF-425 reports, were not provided. 2. Of four quarterly program reports that were due for submission during FY2023, the underlying accounting records supporting all four (or 100%) quarterly program reports, were not provided. Cause: 1. PSS lacks monitoring control procedures to ensure data included in the SF-425 and quarterly program reports are supported with underlying accounting records. 2. Inadequate documentation and inadequate systematic filing of relevant documentation supporting the SF-425 and quarterly program reports. Effect or potential effect: PSS is in noncompliance with the applicable reporting compliance requirements. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: 1. PSS should implement and enforce monitoring controls over compliance with applicable reporting requirements; and 2. Establish and maintain effective systematic filing of relevant documentation to support program costs and for easier retrieval. Views of Auditee and Corrective Action Plan: PSS concurs with the findings. Refer to PSS’ Corrective Action Plan for additional information.