Finding 49612 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-01
Audit: 42433
Organization: Lower Yukon School District (AK)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The District lacks adequate internal controls for reviewing Claims for Reimbursement reports related to the Student Nutrition Program.
  • Impacted Requirements: Compliance with 2 CFR 200 requires established internal controls to ensure accurate reporting of federal program requirements.
  • Recommended Follow-Up: Implement a review process where a knowledgeable individual checks the accuracy of reports before submission to the granting agency.

Finding Text

Finding 2022-001 Significant Deficiency in Internal Control Over Compliance - Reporting Identification of the federal program Award Year Agency and Passthrough Entity Federal Program Title Federal Assistance Listing Number Grant Number 2022 2022 2022 Department of Agriculture - passed through the State of Alaska, Department of Education and Early Development Department of Agriculture ? passed through the State of Alaska, Department of Education and Early Development Department of Agriculture ? passed through the State of Alaska, Department of Education and Early Development Child Nutrition Cluster ? National School Breakfast Program Child Nutrition Cluster ? National School Lunch Program Child Nutrition Cluster ? Fresh Fruit and Vegetable Program 10.553 10.555 10.582 FY22 0321-01 FY22 0321-01 FY22 0321-01 Criteria or Specific Requirement In accordance with 2 CFR 200, the District must establish internal controls to ensure that compliance requirements applicable to the program are followed in accordance with Uniform Guidance. This requires the District to have policies in place to ensure reporting requirements are met. Condition The District did not have appropriate controls in place to ensure reports over Claims for Reimbursement were being reviewed prior to submission. Cause The District did not design adequate internal controls over the review of the monthly Claims for Reimbursement reporting requirements related to the Student Nutrition Program. Effect or Potential Effect Lack of proper internal controls over the review process of Student Nutrition Claims for Reimbursement reports could result in an inaccurate reporting of meal counts being submitted to the granting agency. Questioned costs None Context In our test work over reporting, of the 3 monthly claims for reimbursement reports selected for test work, we noted the District did not have a review process in place for the reports prior to submission. In our test work over daily meal count, we noted that the daily count information for one of the 40 item selected did not match the underlying data. Identification as a repeat finding This is not a repeat finding. Recommendation We recommend the District implement internal control procedures to ensure that a knowledgeable person other than the preparer review and check for accuracy of the Claims for Reimbursement reports prior to submission to the granting agency. Views of responsible officials Management agrees with the finding. Management is implementing a review process for the monthly report prior to the report being submitted to the granting agency.

Categories

School Nutrition Programs Reporting Cash Management Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 49611 2022-001
    Significant Deficiency
  • 49613 2022-001
    Significant Deficiency
  • 626053 2022-001
    Significant Deficiency
  • 626054 2022-001
    Significant Deficiency
  • 626055 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $14.08M
84.425 Education Stabilization Fund $5.11M
84.010 Title I Grants to Local Educational Agencies $4.02M
10.555 National School Lunch Program $1.70M
84.299 Indian Education -- Special Programs for Indian Children $1.18M
84.060 Indian Education_grants to Local Educational Agencies $726,777
10.553 School Breakfast Program $467,578
84.011 Migrant Education_state Grant Program $241,763
10.855 Distance Learning and Telemedicine Loans and Grants $215,770
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $212,281
84.048 Career and Technical Education -- Basic Grants to States $161,785
10.582 Fresh Fruit and Vegetable Program $134,397
84.371 Striving Readers $128,970
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $119,073
16.839 Stop School Violence $113,564
84.358 Rural Education $91,714
84.027 Special Education_grants to States $44,080
84.173 Special Education_preschool Grants $4,890
10.649 Pandemic Ebt Administrative Costs $3,063