FAC Explorer

Finding 47023 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
$1
Year
2022
Accepted
2023-01-17
Audit: 46533
Organization: Santa Paula Unified School District (CA)
Auditor: Nigro & Nigro PC

AI Summary

  • Core Issue: The District misallocated costs between the National School Lunch Program (NSLP) and the Child and Adult Care Food Program (CACFP), leading to an overburden of $390,951 on NSLP.
  • Impacted Requirements: Proper cost allocation rules for inter-district vending agreements were not followed, resulting in financial discrepancies.
  • Recommended Follow-up: The District should review and correct cost allocations to ensure expenditures are accurately assigned to the respective nutrition programs.

Finding Text

Program Identification:Federal Agency: U.S. Department of Agriculture Pass-through Entity: California Department of Education Program Names: Child Nutrition Cluster:National School Lunch Program (AL No. 10.553, 10.553) Child and Adult CARE Food Program (AL No. 10.558) Criteria: The District utilizes a direct cost vending agreement. This allows all costs to be coded to National School Lunch Program (NSLP) and then the Child and Adult Food Care Program (CACFP) is charged for its calculated cost. The reimbursement rate to CACFP is determined annually based on cost experience. The current year rate was based on fiscal year 2021-22 actual costs. Context: Not applicable. Condition: Although the use of a vending agreement is allowable, the District did not allocate the cost of the program properly. This caused the NSLP program to be overburdened with program costs. Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated properly. The amount of the variance was $390,951. Cause: The District was unaware of the rules related to the inter-district vending calculation Recommendation: We recommend that the District review the cost allocations and ensure that all expenditures are allocated to the correct programs. Views of Responsible Officials: The District will review the cost allocation and ensure that all expenditures are correctly allocated between the two nutrition programs.

Corrective Action Plan

For the 2021-22 school year, the District failed to correctly allocate expenditures to the CACFP accounts. In order to correct this action for the 2022-23 School Year, the Director of Fiscal Services will work with the Director of Child Nutrition to reconcile each program and complete the Cost Allocation Worksheet. The District utilizes a direct cost vending agreement, which will allocate costs in an allowable manner. The Director of Fiscal services will be responsible for making the transfer of expenditures from the NSLP accounts to the CACFP accounts. The Director of Child Nutrition will verify the transfers have been completed correctly befor the books are closed. Contacts: Kevin Olson, Lori Toms(Director of Fiscal Services), and Suzanne Stamp(Director of Child Nutrition).

Categories

Questioned Costs School Nutrition Programs Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

  • 47024 2022-001
    Significant Deficiency
  • 47025 2022-001
    Significant Deficiency
  • 47026 2022-001
    Significant Deficiency
  • 623465 2022-001
    Significant Deficiency
  • 623466 2022-001
    Significant Deficiency
  • 623467 2022-001
    Significant Deficiency
  • 623468 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.04M
84.027 Special Education_grants to States $1.02M
10.553 School Breakfast Program $949,033
84.367 Improving Teacher Quality State Grants $201,558
84.365 English Language Acquisition State Grants $157,985
84.010 Title I Grants to Local Educational Agencies $119,421
10.555 National School Lunch Program $102,575
10.582 Fresh Fruit and Vegetable Program $98,476
84.048 Career and Technical Education -- Basic Grants to States $49,704
84.173 Special Education_preschool Grants $34,744
10.558 Child and Adult Care Food Program $25,873