Finding 3120 (2023-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2023-12-02

AI Summary

  • Core Issue: The School lacks proper review and approval processes for invoices and meal counts related to federal programs.
  • Impacted Requirements: This violates the internal control requirements of the Single Audit Act, risking errors in expenditures and reimbursements.
  • Recommended Follow-Up: Implement a review process for invoices and meal counts, ensuring approvals are done by someone other than the Cafeteria Manager, and document these processes.

Finding Text

School Breakfast Program - Assistance Listing No. 10.553; Grant Period: Year Ended June 30, 2023 and National School Lunch Program - Assistance Listing No. 10.555; Grant Period: Year Ended June 30, 2023 Criteria and Condition: To receive federal awards, non-federal entities must agree to maintain internal controls to provide reasonable assurance of compliance with requirements of the Single Audit Act. Context: The School purchases food for the School Breakfast and National School Lunch program however, the invoices for purchases are not reviewed or approved before payment. Also, the meal counts for reimbursement are not reviewed prior to submitting. Cause: The School believed it was efficient if the Cafeteria Manager oversaw all aspects of the program. Effect: This could have resulted in errors or misstatement of expenditures or reimbursements. Recommendation: The School should ensure that processes are in place to review and approve invoices for purchases related to the breakfast and lunch program. In addition, the meal counts and monthly claim reimbursements should be reviewed and confirmed by someone other than the individual compiling the counts. These processes should be documented. Views of responsible officials and planned corrective actions: The School agrees with the finding and is in the process of designing and implementing controls to ensure compliance with the Act.

Corrective Action Plan

Finding 2023-002 - School Breakfast Program No. 10.553; Grant Period: Year Ended June 30, 2023 and National School Lunch Program - Assistance Listing No. 10.555; Grant Period: Year Ended June 30, 2023 Recommendation: The School should ensure that processes are in place to review and approve of invoices for purchases related to the breakfast and lunch program. Also, the meal counts and monthly claim reimbursements should be reviewed and confirmed by someone other than the person compiling the counts. These processes should be documented. Action Taken: Purchase orders for food and supply purchases will be filled out by the Cafeteria Manager and approved by the Chief Operating Officer (COO). Once the food is delivered, the Cafeteria Manager will submit the invoice to the COO and he will match it to the invoice and review and sign the invoice. On a monthly basis, the COO will review and approve the monthly meal counts, compiled by the Cafeteria Manager and submit the meal claim reimbursement. The COO, Craig Eichmann, will be responsible for implementing this updated process and it will be fully implemented by October 31, 2023.

Categories

School Nutrition Programs Internal Control / Segregation of Duties Procurement, Suspension & Debarment Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 3121 2023-002
    Significant Deficiency
  • 3122 2023-002
    Significant Deficiency
  • 3123 2023-002
    Significant Deficiency
  • 579562 2023-002
    Significant Deficiency
  • 579563 2023-002
    Significant Deficiency
  • 579564 2023-002
    Significant Deficiency
  • 579565 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $331,408
84.010 Title I Grants to Local Educational Agencies $328,639
10.553 School Breakfast Program $222,430
84.425 Education Stabilization Fund $220,735
84.367 Improving Teacher Quality State Grants $52,234
84.424 Student Support and Academic Enrichment Program $21,821
84.031 Higher Education_institutional Aid $3,581