Finding 393176 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-04-15

AI Summary

  • Core Issue: The District overpaid an employee and charged non-food service work to the Child Nutrition program.
  • Impacted Requirements: Lack of internal controls led to non-compliance with federal regulations (2 CFR 200.303 & 200.430(i)).
  • Recommended Follow-Up: Implement stronger internal controls to ensure compliance and prevent unallowable expenses.

Finding Text

2023-001 – Activities Allowed and Allowable Costs Federal Program Information: U. S. Department of Education Passed through the State of Vermont Agency of Education ALN: - 10.555 Child Nutrition Cluster Criteria: The following CFR applies to this finding: 2 CFR 200.303 & 2 CFR section 200.430(i) Condition: During audit procedures, it was identified that the District overpaid the employee for 4 charges under this program and charged work to the program that was not specific to food service. Cause: The District does not have the necessary internal controls over compliance. Effect: Insufficient controls could result in unallowable expenses being charged to the program and subsequently improperly reimbursed by federal funds. Identification of Questioned Costs: None identified. Context: There were 75 payroll charges tested. It was found that the employee was not paid the correct rate on 4 charges tested, and there were 3 charges where an employee was charged to the program that did not work specifically for food service. This is not statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implements internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Client agrees with finding, and the unabridged version of their response can be found in the Corrective Action Plan. Please see the Corrective Action Plan issued by the Mount Mansfield Unified Union School District.

Corrective Action Plan

Contact Person Responsible for Corrective Action: Nicole Fortier, Director of Finance and Operations Corrective Action: During our audit it was identified that MMUUSD overpaid an employee for four charges under the Food Service program and charged the work to the program that was not specific to Food Service. To be more specific, Food Service subs were paid at a higher rate ($.50 higher) than the stated rate for a Food Service substitute. Additionally, there were instances noted where a maintenance substitute was charged to a Food Service budget unit. The first step in our corrective action plan was a review with our Senior Payment Specialist of the importance of slowing down and verifying the correct hourly rate being input for our substitutes. This step has already been completed. Additionally, we are in the process of implementing a more thorough payroll review process, which will include a preliminary review by Christal Clark, Accountant in the Business Office. Once Christal has completed her review, this will go to Nicole Fortier, Director of Finance for a final, high‐level review and sign off. We are hopeful to begin the process at the end of FY24, with full implementation in FY25. Anticipated Completion Date: 7/01/2024

Categories

Allowable Costs / Cost Principles School Nutrition Programs

Other Findings in this Audit

  • 969618 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $1.95M
84.367 Improving Teacher Quality State Grants $184,951
93.575 Child Care and Development Block Grant $123,298
84.010 Title I Grants to Local Educational Agencies $109,485
84.027 Special Education_grants to States $103,326
10.674 Wood Utilization Assistance $65,000
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $51,614
93.959 Block Grants for Prevention and Treatment of Substance Abuse $41,071
84.425 Education Stabilization Fund $30,000
84.173 Special Education_preschool Grants $28,196
84.196 Education for Homeless Children and Youth $4,298