Finding 509583 (2024-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2024-11-20

AI Summary

  • Core Issue: The District's contract with Aramark lacks a required termination clause for cancellation with 60-day notice.
  • Impacted Requirements: This oversight violates compliance standards set by 7 CFR 210.16(d) and 7 CFR 220.7(d)(4).
  • Recommended Follow-Up: Update the Aramark contract to include the necessary termination clause before future agreements.

Finding Text

This finding is: New Federal Program Name & Year: National School Lunch Program 2024 & School Breakfast Program 2024 Project Number: 2024-4210 & 2024-4220 ALN No.: 10.555 & 10.553 Passed through: Illinois State Board of Education Federal Agency: United States Department of Agriculture Criteria: The District is responsible for ensuring that there is a termination clause noted in the Aramark contract stating wherby either party may cancel for cause with 60-day notification as required by 7 CFR 210.16(d) and 7 CFR 220.7(d)(4). Condition: There was no termination clause noted in the District's contract with Aramark stating wherby either party may cancel for cause with 60-day notification. Questioned Costs: This section is not applicable to this specific finding. This finding relates to the administrative details of the program and respective contract. Therefore, the finding does not effect costs of the program. Context: The District did not make sure the Aramark contract included the proper termination clause before signing. Effect: The District did not follow the compliance requirements in 7 CFR 210.16(d) and 7 CFR 220.7(d)(4). Cause: The District failed to check for the proper termination clause in the Aramark contract. Recommendation: We recommend the Aramark contract being updated to include the proper termination clause stating wherby either party may cancel for cause with 60-day notification. Management's Response: The District will ensure the Aramark contract has been updated with the proper termination clause before signing another contract.

Categories

School Nutrition Programs

Other Findings in this Audit

  • 509577 2024-004
    Material Weakness
  • 509578 2024-005
    Material Weakness
  • 509579 2024-006
    Material Weakness
  • 509580 2024-006
    Material Weakness
  • 509581 2024-003
    Material Weakness
  • 509582 2024-003
    Material Weakness
  • 509584 2024-003
    Material Weakness
  • 509585 2024-003
    Material Weakness
  • 509586 2024-003
    Material Weakness
  • 1086019 2024-004
    Material Weakness
  • 1086020 2024-005
    Material Weakness
  • 1086021 2024-006
    Material Weakness
  • 1086022 2024-006
    Material Weakness
  • 1086023 2024-003
    Material Weakness
  • 1086024 2024-003
    Material Weakness
  • 1086025 2024-003
    Material Weakness
  • 1086026 2024-003
    Material Weakness
  • 1086027 2024-003
    Material Weakness
  • 1086028 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $442,905
84.027 Special Education Grants to States $387,513
84.425 Education Stabilization Fund $167,181
10.553 School Breakfast Program $107,820
84.048 Career and Technical Education -- Basic Grants to States $79,379
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $59,179
10.555 National School Lunch Program $45,096
10.555 Noncash Commodities $38,471
93.778 Medical Assistance Program $26,659
84.424 Student Support and Academic Enrichment Program $21,689
84.173 Special Education Preschool Grants $16,453
10.556 Special Milk Program for Children $4,118
10.555 Fresh Fruits and Vegetables $2,990