FAC Explorer

Finding 33913 (2022-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-11-22
Audit: 24171
Organization: Hawley Public Schools Isd 150 (MN)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls due to the lack of a formal review process for meal claim summary reports.
  • Impacted Requirements: Compliance with Uniform Guidance standards for federal program operations is at risk.
  • Recommended Follow-Up: Management should implement a formal review process for meal claims summary reports before submission to ensure accuracy and prevent errors.

Finding Text

Reporting Significant Deficiency in Internal Control over Compliance ? Lack of report review Criteria ? Uniform Guidance set forth the standards that non-federal entities other than states must follow when operating federal programs and the required procedures. Condition ? In our testing of reporting, it was identified that there is no formal review of the meal claim summary reports that are submitted on a monthly basis for meal reimbursement. Cause ? One individual is responsible for preparing the reports and submitting them to the state. Also, there is no formal process to review the monthly reports before submission. Questioned Costs ? None reported Repeat Finding from Prior Years ? Not a repeat finding Effect ? No formal review could adversely affect the District's ability to detect misstatements in claim counts that could result in monetary corrections being necessary. Recommendation ? We recommend that management establish a formal process to review the meal claims summary report on a monthly basis before submission in order to verify the meal counts and ensure there are no errors. Views of Responsible Officials ? There is no disagreement with the audit finding.

Corrective Action Plan

Reporting ? Lack of Report Review Significant Deficiency in Internal Control over Compliance Finding Summary: During the course of the audit, Eide Bailly LLP noting there was no formal review of the meal claim summary reports that are submitted on a monthly basis for meal reimbursement. Responsible Individuals: Phil Jensen, Superintendent Corrective Action Plan: The District will establish an internal control for an independent review of the meal claims summary report and the claims made in CLiCS on a monthly basis to review for accuracy and completement. This review will be done by another district office staff member. Anticipated Completion Date: June 30, 2023

Categories

Cash Management Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 33914 2022-004
    Significant Deficiency
  • 33915 2022-004
    Significant Deficiency
  • 610355 2022-004
    Significant Deficiency
  • 610356 2022-004
    Significant Deficiency
  • 610357 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $217,001
10.553 School Breakfast Program $115,005
84.010 Title I Grants to Local Educational Agencies $87,317
10.558 Child and Adult Care Food Program $59,237
84.367 Improving Teacher Quality State Grants $28,820
10.555 National School Lunch Program $25,246
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $10,000
21.027 Coronavirus State and Local Fiscal Recovery Funds $7,402
10.649 Pandemic Ebt Administrative Costs $1,031
84.027 Special Education_grants to States $969