Finding Text
Child Nutrition Cluster Reporting Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: WI Department of Public Instruction Pass-Through Number(s): 2022-433647-DPI-SB-SEVERE-546, 2022-433647-DPI-NDL-547 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Condition: Of the 7 tested monthly claim forms, 5 did not reconcile to the underlying meal count records of the district. There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: In the 4 National School Lunch Plan claims tested, the District reported 30,130 meals served, but had records to support 30,101, and of the 3 School Breakfast claims tested, the District reported 8,340 meals served, but had records to support 8,329. Cause: Due to the changes in the school lunch program caused by the pandemic, the District utilized manual count sheets for meals served during the year. One individual was responsible for compiling the count sheets and completing the monthly reporting. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District filed incorrect meal reporting during the year and received the incorrect funding amount. Repeat Finding: No Recommendation: We recommend that the District review its internal controls and designate an individual other than the preparer to review and approve any grant claims.