Finding Text
Federal Agency: Department of Agriculture
Federal Program Name: Child Nutrition Cluster
Assistance Listing Number: 10.553 and 10.555
Pass-Through Agency: Wisconsin Department of Public Instruction
Pass-Through Number(s): 2024-678022-DPI-SB-546, 2024-010014-DPI-NSL-547, 2024-010014-DPISK_NSLAE-566
Award Period: July 1, 2023 through June 30, 2024
Type of Finding:
Material Weakness in Internal Control over Compliance
Material Noncompliance (Modified Opinion)
Criteria or specific requirement: According to 7 CFR, Section 210.14(c) a non-federal entity is required to account for all nonprofit school food service revenues and expenditures separately from other funds.
Condition: One City Schools, Inc. did not account for nonprofit school food service revenue and expenses of the program in a separate class in its accounting software.
Questioned costs: None
Cause: Policies and procedures were put in place after the prior year single audit findings, but were not able to be incorporated for the current fiscal year under audit.
Effect: There could be a unallowed profit made on the program.
Repeat Finding: Yes (2023-008)
Recommendation: Internal controls for accounting for nonprofit school food service funds should be implemented. A separate class in the accounting software for the program could be utilized.
Views of responsible officials: One City Schools, Inc. agrees with the finding and will be implementing a separate class in its accounting software for the program’s revenue and expenses.