Finding Text
Federal program: Child Nutrition Cluster (CFDA 10.553, 10.555) Criteria: Per Title 2, Subtitle A, Chapter II, Subpart D, Section 202.303 (a), a non-Federal entity must "establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)." Condition: A material weakness in controls over compliance was identified for controls over compliance requirement L from the 2022 Office of Management and Budget (OMB) Compliance Supplement. Controls over reporting were found not to be implemented. Cause: Oversights by administrative staff, which may have been due to a lack of familiarity with the process of compiling and submitting reports, as well as difficulties adjusting to process changes related to the pandemic and its effects on the District. Effect or potential effect: A lack of effective internal controls over compliance for reporting could cause incorrect meal numbers to be reported, leading to the district receiving a higher or lower reimbursement than they should have received. Questioned costs: No known or estimated questioned costs identified. Context: Out of a population of 12 monthly reimbursement reports filed for the year ended June 30, 2022, 4 samples were selected. Of the 4 monthly reimbursement reports, none had evidence of review. Recommendation: The District should develop and implement policies and procedures to ensure that all monthly reimbursement reports are reviewed in a timely manner and documented appropriately. Views of responsible officials: The District understands and concurs with this finding