Finding Text
2025-001 Improve Controls Over Food and Nutrition Services Reporting Federal Agency: U.S. Department of Education Program: Child Nutrition Cluster AL Number: 10.555 Award Year: 2025 Type of Finding Internal Control over Compliance - Reporting - Significant Deficiency Criteria or Specific Requirement In accordance with 2 CFR 200.303 management of the Town is responsible for establishing, documenting, and maintaining effective internal control over Federal award that provides reasonable assurance that the Town is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Requests for reimbursement were not reviewed by anyone other than the preparer. Cause Weaknesses in the design of internal controls. Effect or Potential Effect Without proper documentation and adherence to the review and approval process, there is an increased risk of inaccurate reimbursement requests being submitted to the grantor. Questioned Costs There are no questioned costs as a result of this finding as there are no costs directly associated with the finding. Recommendation The Town should implement formal policies and procedures regarding separation of duties and the requirement of a second individual being involved in the reporting process. Views of Responsible Official and Planned Corrective Action Management’s views and Corrective Action Plan are included at the end of this report.