Finding Text
2023-003 – Inaccurate Reporting/Lack of Independent Review and Approval of Reporting
Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Reporting).
Federal program(s)
U.S. Department of Agriculture –
Child Nutrition Cluster (ALN 10.CNC); Passed through MDE; All project numbers
Criteria. Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions.
Condition. During our audit procedures over the District's reporting process, we noted that none of the claim requests selected for testing were subject to an independent review and approval process. We also noted that one out of the three reports selected for testing had the incorrect number of snack meals.
Cause. This condition is the result of management not recognizing the importance of establishing such controls.
Effect. As a result of this condition, the District did not comply fully with the reporting requirements under this federal award. In addition, the District was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis.
Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified.
Recommendation. We recommend that the District establish procedures to ensure that the number of meals being submitted for reimbursement agrees to the actual meal counts, and that all reports are subject to review and approval by an independent employee prior to submission.
View of Responsible Officials. The Food Services Director will review and total actual meal counts monthly, and the Food Services Administrative Assistant will review and verify the actual meal counts. The Business Manager will review and verify the monthly meal count after it is filed with the Business Office each month.
Responsible Official. Food Service Director and Business Manager
Estimated Completion Date. June 30, 2024