Finding Text
FINDING NUMBER: 2022-002 THIS FINDING IS: Repeat from Prior year? Yes Year originally reported? 2020 FINDING TYPE: Internal Control DEFICIENCY TYPE: Significant Deficiency Federal Program Name and Year: Child Nutrition Cluster - 2022 Project No.: 21 & 22-4220, 4210, 4215, 4225 AL No.: 10.553, 10.555, 10.556, 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has not adequately established internal controls to ensure that net cash resources are being properly monitored. Questioned Costs: None. Context: The District did not properly calculate a running balance of the net cash resources of the nonprofit school food service nor did they have an understanding of the significance of their calculation. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed an adequate system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: We recommend that the management establish internal controls related to the cash management compliance requirement to monitor and ensure that the net cash resources of the nonprofit school food service does not exceed 3 months average expenditures. Management's response: There is no disagreement with this finding and internal controls will be developed to monitor the net cash resources of the nonprofit school food service.