Finding 1224827 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-07-28

AI Summary

  • Core Issue: The District lacks proper internal controls for reviewing and approving SNP Claim for Reimbursement Summary reports.
  • Impacted Requirements: Compliance with 2 CFR section 200.303(a) regarding effective internal controls over Federal awards.
  • Recommended Follow-Up: Implement independent review procedures for reports before submission, ensuring documentation of the review process.

Finding Text

Reference Number: 2025 – 001 Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-through Agency: Pennsylvania Department of Education Pass-through Entity Number: N/A Federal Award Identification Number and Year: 241PA305N1199, 251PA305N1199 Award Period: 07/1/2024 to 6/30/2025 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Internal Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The District was unable to provide evidence of independent review and approval for three of three reporting samples tested. Questioned Costs: None Context: The District did not properly review and approve three of three SNP Claim for Reimbursement Summary reports. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Cause: The District did not have internal controls established to ensure proper review and approval of the SNP Claim for Reimbursement Summary report. Effect: There is a risk that meals submitted for reimbursement were overstated or understated. Repeat Finding: No Recommendation: We recommend that the District implement procedures to ensure that SNP Claim for Reimbursement Summary reports are independently reviewed and approved prior to submission to Program Electronic Application and Reimbursement System (PEARS). This review should be performed by an individual who is not involved in the preparation of the reports and evidence of the review should be documented.

Corrective Action Plan

Views of Responsible Officials: The District will implement formal internal control procedures requiring review and documented approval of all SNP Claim for Reimbursement Summary reports prior to submission in PEARS. The following procedures will be implemented: 1. The Director of Food Services will prepare the monthly SNP Claim for Reimbursement Summary report and compile all supporting meal count documentation. 2. Prior to submission, the Administrative Assistant to the Director of Food Services or another designated individual independent of the preparation process will: a. Review the claim for mathematical accuracy; b. Verify meal counts against supporting documentation; c. Confirm claims are submitted within required timelines; and 3. Evidence of the review and approval will be documented through: a. Signature or electronic approval on the reimbursement summary report; and b. Retention of supporting documentation in accordance with federal and state record retention requirements. 4. A written standard operating procedure (SOP) outlining these review and approval responsibilities will be developed and communicated to applicable personnel. The Business Manager will periodically monitor compliance with the procedure to ensure controls remain effective.

Categories

Subrecipient Monitoring Cash Management Reporting School Nutrition Programs Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1224825 2025-001
    Material Weakness Repeat
  • 1224826 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $668,803
10.553 SCHOOL BREAKFAST PROGRAM $281,393
10.555 NATIONAL SCHOOL LUNCH PROGRAM $112,225
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $78,436
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $66,606
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $50,752
84.027 SPECIAL EDUCATION GRANTS TO STATES $25,000
93.778 GRANTS TO STATES FOR MEDICAID $14,614
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $13,109
84.425 EDUCATION STABILIZATION FUND $1,943
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $1,260