Finding Text
1. FINDING NUMBER: 2022- 004 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Child Nutrition Cluster 2022 4. Project No.: 4210, 4210-SC, 4220, Commodity Credit & Fresh Fruits and Vegetables 5. CFDA No.: 10.553 & 10.555 6. Passed Through: Illinois State Board of Education & U.S. Department of Defense 7. Federal Agency: United States Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance with cash management require the District to have controls or procedures in place to monitor the program income of the food service program to ensure that annual profit does not exceed 3 months of operating expenses. 9. Condition The District prepared analysis of the profitability of the food service program was not clerically accurate by a material amount. 10. Questioned Costs None 11. Context The food service receipts used in the profitability analysis were understated by $65,030. Only Federal sources were included in the receipt total. 12. Effect Noncompliance with cash management requirements could occur and not be detected. 13. Cause The report generated from the District's accounting system did not included all sources of revenue required to be included in the profitability analysis. 14. Recommendation The profitability analysis should be reviewed by someone independent of the preparer to ensure that all food service receipts and disbursements are included in the profitability analysis. 15. Management's response The auditor's recommendation will be implemented in subsequent years.