Finding Text
2023-003: U.S. Department of Agriculture
Passed through State of Nevada Department of Agriculture
Child Nutrition Cluster
School Breakfast Program, 10.553
National School Lunch Program, 10.555
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Material Weakness in Internal Control over Compliance
Grant Award Number: Affects all grant awards included under assistance listing numbers 10.553 and 10.555 on the Schedule of Expenditures of Federal Awards.
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Internal Controls requires that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award.
A key component of effective internal control is adequate documentation to support payroll costs through approved timecards.
Condition: Payroll costs charged to the program did not have evidence of timecards by the employee.
Cause: Elko County School District did not have adequate internal controls to ensure maintenance of timecards charged to the program with approvals.
Effect: Unallowable costs may be charged to the program and not detected by Elko County School District.
Questioned Costs: None noted
Context/Sampling: A nonstatistical sample of 40 payroll charges out of a population of 2,021 charges were selected for testing. For five charges made there was no documented timecards with appropriate approval.
Repeat Finding from Prior Year(s): No
Recommendation: We recommend the Elko County School District implement internal control policies to require maintenance of timecards for the program with appropriate approvals.
Views of Responsible Officials: Management agrees with the finding.