Finding 39853 (2022-008)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2022
Accepted
2023-09-27

AI Summary

  • Core Issue: The contract with the Food Service Management Company was not properly executed or monitored during FY22.
  • Impacted Requirements: This violates 7 CFR Chapter 2 Section 210.16a, leading to potential noncompliance with Uniform Guidance.
  • Recommended Follow-Up: Ensure annual written contracts are obtained and implement controls to match payments with detailed supporting invoices.

Finding Text

2022-008 Federal Agency: U.S. Department of Agriculture Pass Thru Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Condition: Food Service Management Company contract was not properly executed and monitored during FY22. Criteria: 7 CFR Chapter 2 Section 210.16a Food Service Management Companies?Any school food authority (including a State agency in the capacity of a school food authority) may contract with a food service management company its food service operation in one or more of its schools. Cause: Lack of monitoring Context: No written contract was found for the fiscal year 2022 with the food service management company. Two out of the three monthly invoices did not have a detailed supporting documentation for the services billed. Effect: Noncompliance with Uniform Guidance and possible question costs. Recommendation: Written contracts need to be obtained on an annual basis for contract services provided by outside companies on a recurring basis. Controls need to be implemented to insure those amounts paid under these contracts agrees with detail supporting invoices. Repeat Finding from Prior Year: No Views of Responsible Officials and Planned Corrective Action: FY23 Food Service Management contract has been reviewed. Finance Director will compare monthly invoices and detail with the meals claimed to contract terms. Also note that FY24, the District is returning to a self-managed Child Nutrition program.

Corrective Action Plan

2022-008 Federal Agency: U.S. Department of Agriculture Pass Thro Entity: Oklahoma State Department of Education Program: Child Nutrition Cluster Assistance Listing: 10.553 & 10.555 Grant Period: Year ending June 30, 2022 Recommendation: The auditor recommended that written contracts need to be obtained on an annual basis for contract services provided by outside companies on a recurring basis. Controls need to be implemented to insure those amounts paid under these contracts agrees with detail supporting invoices. Action Taken: FY23 Food Service Management contract has been reviewed. Finance Director will compare monthly invoices and detail with the meals claimed to contract terms. Also note that FY24, the District is returning to a self-managed Child Nutrition program.

Categories

Subrecipient Monitoring School Nutrition Programs

Other Findings in this Audit

  • 39842 2022-006
    Material Weakness
  • 39843 2022-003
    Material Weakness
  • 39844 2022-004
    Material Weakness
  • 39845 2022-005
    Material Weakness Repeat
  • 39846 2022-003
    Material Weakness
  • 39847 2022-004
    Material Weakness
  • 39848 2022-005
    Material Weakness Repeat
  • 39849 2022-003
    Material Weakness
  • 39850 2022-004
    Material Weakness
  • 39851 2022-005
    Material Weakness Repeat
  • 39852 2022-007
    Material Weakness
  • 39854 2022-007
    Material Weakness
  • 39855 2022-008
    Material Weakness
  • 48207 2022-007
    Material Weakness
  • 48208 2022-008
    Material Weakness
  • 616284 2022-006
    Material Weakness
  • 616285 2022-003
    Material Weakness
  • 616286 2022-004
    Material Weakness
  • 616287 2022-005
    Material Weakness Repeat
  • 616288 2022-003
    Material Weakness
  • 616289 2022-004
    Material Weakness
  • 616290 2022-005
    Material Weakness Repeat
  • 616291 2022-003
    Material Weakness
  • 616292 2022-004
    Material Weakness
  • 616293 2022-005
    Material Weakness Repeat
  • 616294 2022-007
    Material Weakness
  • 616295 2022-008
    Material Weakness
  • 616296 2022-007
    Material Weakness
  • 616297 2022-008
    Material Weakness
  • 624649 2022-007
    Material Weakness
  • 624650 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $2.07M
84.425 Education Stabilization Fund $775,412
84.377 School Improvement Grants $647,961
10.553 School Breakfast Program $390,313
10.555 National School Lunch Program $126,121
10.558 Child and Adult Care Food Program $105,459
84.048 Career and Technical Education -- Basic Grants to States $44,953
84.060 Indian Education_grants to Local Educational Agencies $42,617
15.130 Indian Education_assistance to Schools $27,523
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $22,842
84.173 Special Education_preschool Grants $16,046
84.027 Special Education_grants to States $10,346
84.184 Safe and Drug-Free Schools and Communities_national Programs $2,622