Finding 29148 (2022-003)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-09-21
Audit: 30107
Organization: Big Apple Institute INC (NY)

AI Summary

  • Core Issue: Food purchases for program and non-program purposes were not properly separated, leading to necessary journal corrections.
  • Impacted Requirements: CFR regulations mandate that program food purchasing must be distinct from other food programs and non-funded refreshments.
  • Recommended Follow-Up: Ensure all non-program food purchases are on separate invoices and improve management oversight in approving program food purchases.

Finding Text

22-03 CFDA 10.553 and 10.555?United States Department of Agriculture, Nutrition Cluster passed through the New York State Dept. of Education, Child Nutrition Administration Condition: Food purchasing for program and non-programmatic purposes was not appropriately segregated. Journal entries were required to correct for these errors. Criteria: According to CFR regulations, the purchasing of program food must be separated from both other food programs and non-funded school refreshments. Cause: Lack of proper scrutiny of the use of food purchases in relation to the menu requirements. Effect: While excess costs were not charged to the program, the error is indicative of deficiencies in the relation of program purchases to menu requirements. Perspective: Applicable to the Breakfast and Lunch programs. Auditor Recommendation: All purchases for non-program foods should be on separate invoices and management must be more careful in the approval process for program food purchases. All non-program foods should be paid for separately using non-program accounts. Reviews of Responsible Officials: Response per corrective action plan on page 26.

Corrective Action Plan

On behalf of the finding 22-03-CFDA 10.553 and 10.555-Federal Grant Programs the following changes will be implemented: The Food Program Directors will ensure that all the food-related invoices will be separated in relation of program purchases to menu requirements. All the invoices will be approved by the Food Program Directors. All the invoices will be paid separately. All food invoices related to non-funded purchases will be allocated accordingly and paid separately. The enforcement of the purchasing procedure will be in effect starting October 2023 to ensure the separation of purchasing, inventory control, authorization and disbursement functions. The responsible party for this change will be Sharon Gardner, Food Program Director.

Categories

Procurement, Suspension & Debarment School Nutrition Programs

Other Findings in this Audit

  • 29149 2022-003
    Significant Deficiency
  • 605590 2022-003
    Significant Deficiency
  • 605591 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $616,406
10.558 Child and Adult Care Food Program $439,789
10.553 School Breakfast Program $156,893
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $28,594