Finding Text
Finding 2022-001 Assisting Listing Number No. 10.555 Program title: National school lunch program ? seamless summer option Passed through the Mississippi Department of Education Compliance Requirement Allowable Cost / Cost Principles CRITERIA: The 2021-22 fiscal year calculation of indirect cost on the child nutrition program should be based on the adjusted expenditures for the current grant year, i.e., the 2021-22 grant year. CONDITION: The district calculated indirect cost based on adjusted expenditures for the child nutrition program for the current grant year and the previous two grant years. This resulted in an excess amount of indirect cost being charged to the child nutrition program. CAUSE: The cause of the condition was an error by management. EFFECT: The effect of the condition resulted in $605,187 excess indirect cost being charged to the federal program. QUESTIONED COSTS: $605,187 PERSPECTIVE FOR JUDGING THE PREVALENCE AND CONSEQUENCE OF THE AUDIT FINDING: This is an isolated matter. REPEAT OF A FINDING: This is not a repeat finding. RECOMMENDATION: It is recommended that indirect cost for the child nutrition program be calculated using the current grant year adjusted expenditures. VIEWS OF RESPONSIBLE OFFICIAL: See management?s response in the Corrective Action Plan.