Finding 24839 (2022-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 22047
Organization: Monticello Cusd #25 (IL)

AI Summary

  • Core Issue: The District's profitability analysis for the food service program was inaccurate, missing $65,030 in receipts.
  • Impacted Requirements: This affects compliance with cash management rules, which require monitoring to ensure profits do not exceed three months of operating expenses.
  • Recommended Follow-Up: Have an independent review of the profitability analysis to ensure all revenue sources are included.

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.

Categories

Cash Management School Nutrition Programs Program Income Internal Control / Segregation of Duties

Other Findings in this Audit

  • 24837 2022-004
    Significant Deficiency
  • 24838 2022-004
    Significant Deficiency
  • 24840 2022-004
    Significant Deficiency
  • 24841 2022-003
    -
  • 24842 2022-003
    -
  • 601279 2022-004
    Significant Deficiency
  • 601280 2022-004
    Significant Deficiency
  • 601281 2022-004
    Significant Deficiency
  • 601282 2022-004
    Significant Deficiency
  • 601283 2022-003
    -
  • 601284 2022-003
    -

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $443,205
84.027 Special Education_grants to States $366,209
10.553 School Breakfast Program $147,652
84.010 Title I Grants to Local Educational Agencies $129,012
84.367 Improving Teacher Quality State Grants $38,401
10.555 National School Lunch Program $29,957
93.778 Medical Assistance Program $18,396
84.173 Special Education_preschool Grants $10,036
84.048 Career and Technical Education -- Basic Grants to States $8,000
10.649 Pandemic Ebt Administrative Costs $614