Finding Text
Criteria or Specific Requirement: All revenue generated by the school food service must be used to operate and improve its food service program (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)).
Condition: Internal controls over coding for non-routine expenditures charged to the food service program do not appear to be effective. Testing procedures revealed several instances of expenditures which had no benefit to the food service program and did not fulfill the requirements for meals served under the food service program being charged to the food service program.
Context: Among items tested were non-payroll expenditure transactions. AICPA sampling guidelines for small popluations was utilized to determine the appropriate sample size. Based on additional review, we were able to satisfy ourselves that the errors were isolated to one vendor.
Questioned Costs: $4,706. This amount represents the total amount of non-routine expenditures paid to the single vendor which were incorrectly coded by the Academy.
Effect: The food service fund is paying for costs that do not benefit the food service program of the Academy.
Cause: The Academy is not appropriately coding and reviewing non-routine expenditures for the food service program.
Repeat: No
Auditor's Recommendation: Management and individuals involved in the processing of expenditures should review the program requirements for expenditures coded to the food service program. We also recommend a thorough and detailed review of all expenditures charged on a regular basis by program management.
View of Responsible Officials: The Executive Director and Financial Service Provider will monitor the expenditures in the food service program.