FAC Explorer

Finding 34025 (2022-007)

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 lacks a process to prevent nonprogram food costs from being subsidized by program food revenues.
  • Impacted Requirements: This finding violates compliance with 7 CFR 210.14(f).
  • Recommended Follow-Up: Implement the USDA's Nonprogram Revenue Tool and improve invoice reporting with Aramark.

Finding Text

Finding number: 2022-007 This finding is: New Federal Program Name and Year: National School Lunch Program 2022 Project No.: 2022-4210 CFDA No.: 10.555 Passed through: Illinois State Board of Education Federal Agency: United States Department of Agriculture Criteria: The District is responsible for monitoring the District's compliance with 7 CFR 210.14(f) to ensure that costs of nonprogram foods are not being subsidized by program food revenues. Condition: The District does not have a process in place currently nor is using the USDA's Nonprogram Revenue Tool to ensure that costs of nonprogram foods are not being subsidized by program food revenues. Questioned Costs: This section is not applicable to this specific finding. Questioned costs are not identifiable as costs of both the program and nonprogram foods are not kept separately. Context: The District did not put a process into place to ensure that costs of nonprogram foods are not being subsidized by program food revenues. Effect: The District did not follow the compliance requirements in 7 CFR 210.14(f). Cause: The District failed to ensure that costs of nonprogram foods were not being subsidized by program food revenues. Recommendation: We recommend the District begin using the USDA's Nonprogram Revenue Tool as well as work with Aramark to change the presentation of the invoices received. The District will also request additional monthly reports detailing revenue from nonprogram foods. Management's Response: The District will begin using the USDA's Nonprogram Revenue Tool, updated invoices from Aramark, and new reports from Aramark to ensure compliance with the Code of Federal Regulations.

Corrective Action Plan

Compliance: Finding: 2022-007 Condition: The District does not have a process in place currently nor is using the USDA's Nonprogram Revenue Tool to monitor the District's compliance with 7 CFR 210.14(f) to ensure that costs of nonprogram foods are not being subsidized by program food revenues. Plan: The District will begin using the USDA's Nonprogram Revenue Tool as well as work with Aramark to change the presentation of the invoices received. The District will also request additional monthly reports detailing revenue from nonprogram foods. Anticipated Date of Completion: June 30, 2023 Name of Contact Person: Dr. Joel Hackney, Superintendent Management's Response: Management will begin using the USDA's Nonprogram Revenue Tool, updated invoices from Aramark, and new reports from Aramark to ensure compliance with the Code of Federal Regulations.

Categories

School Nutrition Programs Subrecipient Monitoring

Other Findings in this Audit

  • 34023 2022-005
    Material Weakness
  • 34024 2022-006
    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