Finding 36895 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-03-02
Audit: 25582
Organization: Harrison County School District (MS)

AI Summary

  • Core Issue: Management mistakenly charged a bus driver's salary to the federal program, violating compliance rules.
  • Impacted Requirements: Costs must be directly related to the program; $16,425.66 was improperly billed.
  • Recommended Follow-Up: Ensure accurate salary coding and transfer the unallowed costs from the maintenance fund to the child nutrition program fund.

Finding Text

Finding 2022-001 Reference Number: 2022-001 Federal Agency: U.S. Department of Agriculture Federal Program: National school lunch program ? seamless summer option Assistance Listing No.: 10.555 Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Significant deficiency in Internal Control over Compliance CRITERIA: Cost charged to the federal program must be for program related purposes. CONDITION: Management charged the salary of a school district bus driver to the federal program. CAUSE: The cause of the condition was an error by management. EFFECT: The effect of the condition resulted in $16,425.66 of unallowed cost being charged to the federal program. QUESTIONED COST: None PREVALENCE OF AUDIT FINDING: This condition is considered to be an isolated incident. REPEAT FINDING: This is not a repeat finding. RECOMMENDATION: It is recommended that management exercise caution in coding salaries such that salaries to be charged to local sources not be charged to federal programs. In addition, it is recommended that $16,425.66 be transferred from the district maintenance fund to the child nutrition program fund. VIEWS OF RESPONSIBLE OFFICIAL: See Auditee?s Corrective Action Plan

Corrective Action Plan

2022-001 a. Name of contact person responsible for corrective action: Mitchell King b. Corrective action planned: Personnel and federal program directors will review coding of all employees prior to payment. Child nutrition program has been reimbursed the unallowed cost. c. Anticipated completion date: June 30, 2023

Categories

School Nutrition Programs Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 36896 2022-002
    Significant Deficiency
  • 613337 2022-001
    Significant Deficiency
  • 613338 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $9.33M
84.010 Title I Grants to Local Educational Agencies $5.79M
84.425 Covid-19 - Education Stabilization Fund (essser) Arp III $4.09M
84.027 Special Education_grants to States $3.92M
84.425 Covid--19 - Education Stabilization Fund (esser) II $1.38M
84.367 Improving Teacher Quality State Grants $901,371
10.555 Covid-19 - Emergency Operation Cost Reimbursement Program $586,234
84.424 Student Support and Academic Enrichment Program $407,349
10.582 Fresh Fruit and Vegetable Program $370,024
12.U01 Reserve Officers' Training Corps $222,487
84.048 Career and Technical Education -- Basic Grants to States $208,897
84.027 Covid-19 - Special Education_grants to States $149,656
84.365 English Language Acquisition State Grants $95,882
84.173 Special Education_preschool Grants $94,180
84.425 Covid-19 - Education Stabilization Fund (esser) I $44,166
84.425 Covid-19 - Cte Esser Grant $16,550
93.778 Medical Assistance Program $16,125
84.173 Covid-19 - Idea Arp $1,678