FAC Explorer

Finding 34024 (2022-006)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-12-11
Audit: 31720
Organization: Flora Community Unit School District #35 (IL)
Auditor: Leymone Hardcastle & CO LTD

AI Summary

  • Core Issue: The District's contract with Aramark lacks a required termination clause for cancellation with 60-day notice.
  • Impacted Requirements: This oversight violates compliance standards set by 7 CFR 210.16(d) and 7 CFR 220.7(d)(4).
  • Recommended Follow-Up: Update the Aramark contract to include the necessary termination clause before future signings.

Finding Text

Finding number: 2022-006 This finding is: New Federal Program Name and Year: National School Lunch Program 2022 & School Breakfast Program 2022 Project No: 2022-4210 & 2022-4220 CFDA No: 10.555 & 10.553 Passed through: Illinois State Board of Education Federal Agency: United States Department of Agriculture Criteria: The District is responsible for ensuring that there is a termination clause noted in the Aramark contract stating whereby either party may cancel for cause with 60-day notification as required by 7 CFR 210.16(d) and 7 CFR 220.7(d)(4). Condition: There was no termination clause noted in the District's contract with Aramark stating whereby either party may cancel for cause with 60-day notification. Questioned Costs: This section is not applicable to this specific finding. This finding relates to the administrative details of the program and respective contract. Therefore, the finding does not effect costs of the program. Context: The District did not make sure the Aramark contract included the proper termination clause before signing. Effect: The District did not follow the compliance requirements in 7 CFR 210.16(d) and 7 CFR 220.7(d)(4). Cause: The District failed to check for the proper termination clause in the Aramark contract. Recommendation: We recommend the Aramark contract being updated to include the proper termination clause stating whereby either party may cancel for cause with 60-day notification. Management's Response: The District will ensure the Aramark contract has been updated with the proper termination clause before signing another contract.

Corrective Action Plan

Compliance: Finding: 2022-006 Condition: There was no termination clause noted in the Aramark contract stating whereby either party may cancel for cause with 60-day notification as required by 7 CFR 210.16(d) and 7 CFR 220.7(d)(4). Plan: The Aramark contract will be updated to include the proper termination clause stating whereby either party may cancel for cause with 60-day notification. Anticipated Date of Completion: June 30, 2023 Name of Contact Person: Dr. Joel Hackney, Superintendent Management's Response: Management will ensure the Aramark contract has been updated with the proper termination clause before signing another contract.

Categories

School Nutrition Programs

Other Findings in this Audit

  • 34023 2022-005
    Material Weakness
  • 34025 2022-007
    Material Weakness
  • 34026 2022-005
    Material Weakness
  • 34027 2022-006
    Material Weakness
  • 34028 2022-007
    Material Weakness
  • 34029 2022-005
    Material Weakness
  • 34030 2022-006
    Material Weakness
  • 610465 2022-005
    Material Weakness
  • 610466 2022-006
    Material Weakness
  • 610467 2022-007
    Material Weakness
  • 610468 2022-005
    Material Weakness
  • 610469 2022-006
    Material Weakness
  • 610470 2022-007
    Material Weakness
  • 610471 2022-005
    Material Weakness
  • 610472 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 - Education Stabilization Fund - Arp Esser $958,938
84.425 Covid-19 - Education Stabilization Fund - Esser $657,570
10.555 National School Lunch Program $494,455
84.027 Special Education_grants to States $364,519
10.553 School Breakfast Program $203,193
84.010 Title I Grants to Local Educational Agencies $61,506
84.367 Improving Teacher Quality State Grants $54,119
93.778 Medical Assistance Program $40,722
10.555 Noncash Commodities $26,753
84.048 Career and Technical Education -- Basic Grants to States $26,415
84.424 Student Support and Academic Enrichment Program $26,389
84.173 Special Education_preschool Grants $15,749
10.555 Fresh Fruits and Vegetables $15,153
10.555 Covid-19 - National School Lunch Program $9,213
84.027 Covid-19 - Special Education_grants to States - Arp Idea $7,309
10.556 Special Milk Program for Children $3,169
84.425 Covid-19 - Education Stabilization Fund - Arp Homeless $2,380
10.559 Summer Food Service Program for Children $2,092
45.310 Grants to States $708