Finding 46163 (2022-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2022-10-30

Audit: 41016

Organization: Shepherd Public School District (MI)

Auditor: Roslund Prestage & Company PC

AI Summary

Core Issue: Meals claimed for reimbursement were not fully supported by required documentation for one month.
Impacted Requirements: The District must accurately report meals served based on individual meal counts.
Recommended Follow-Up: Review and improve the internal control process to ensure meal claims match supporting documentation.

Finding Text

Finding 2022-002 ? REPORTING Type: Significant Deficiency in Internal Control / Noncompliance ? Reporting Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: Meals claimed were not supported by count sheets for lunch for one of the two months meals were tested. Criteria: The District is required to claim meals served, by category, based on reports provided from individual meal serve counts. Cause: This condition was caused by an insufficient internal control process for comparison of supporting documentation of meal counts to meal claims. Effect: Based on a comparison of meals claimed to reports provided from individual meal serve counts, the District has underclaimed reimbursement for the year by an immaterial amount. Questioned Costs: None. Recommendation: We recommend that the District review their process of meal claims and make necessary changes to ensure that all meals claimed, by category, agree to supporting documentation. Management?s Resp: We are in agreement with this finding.

Corrective Action Plan

Finding 2022-002 ? REPORTING Type: Significant Deficiency in Internal Control! Noncompliance ? Reporting Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: Meals claimed were not supported by count sheets for lunch for one of the two months meals were tested. Criteria: The District is required to claim meals served, by category, based on reports provided from individual meal serve counts. Cause: This condition was caused by an insufficient internal control process for comparison of supporting documentation of meal counts to meal claims. Effect: Based on a comparison of meals claimed to reports provided from individual meal serve counts, the District has underclaimed reimbursement for the year by an immaterial amount. Questioned Costs: None. Recommendation: We recommend that the District review their process of meal claims and make necessary changes to ensure that all meals claimed, by category, agree to supporting documentation. Corrective Action Plan: Shepherd Public Schools Food Service Department will implement internal control review process to ensure that individual meal serve counts match identically the meals claimed by reviewing original count sheets at the time of certification of meal claims. Either the food service director or assigned designee will verify counts at the end of each month. This internal control review process will begin effective with the October 2022 claims report.

Other Findings in this Audit

46162 2022-001

Material Weakness
46164 2022-001

Material Weakness
46165 2022-002

Significant Deficiency
46166 2022-001

Material Weakness
46167 2022-002

Significant Deficiency
622604 2022-001

Material Weakness
622605 2022-002

Significant Deficiency
622606 2022-001

Material Weakness
622607 2022-002

Significant Deficiency
622608 2022-001

Material Weakness
622609 2022-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
10.555	National School Lunch Program	$747,553
84.010	Title I Grants to Local Educational Agencies	$231,948
10.553	School Breakfast Program	$193,361
84.367	Improving Teacher Quality State Grants	$94,556
93.243	Substance Abuse and Mental Health Services_projects of Regional and National Significance	$93,443
84.425	Education Stabilization Fund	$29,750
32.009	Emergency Connectivity Fund Program	$15,000
84.424	Student Support and Academic Enrichment Program	$12,617
10.649	Pandemic Ebt Administrative Costs	$614