Finding 51768 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-03

AI Summary

  • Issue: The District duplicated meal reimbursement requests for May 2022, affecting financial accuracy.
  • Requirements Impacted: Internal controls over financial reporting were insufficient, leading to overstated revenue of $34,076.
  • Follow-Up: Recommend the CFO review all claims and verify meal counts before submission once staffing is stabilized.

Finding Text

Criteria - The District's internal control over financial reporting should ensure accurate claim reporting of the National School Breakfast/Lunch Program (NSBLP) meals on a monthly basis. Condition - The District's inadvertently requested meal reimbursements for May 2022 under both the Seamless Summer Option (SSO) and NSBLP thus duplicating the request. Cause - The District had staff turnover within the NSBLP and business office that affected the reporting process. Effect - Reimbursement revenue of $34,076 was received and recorded as revenue in the fiscal year ended August 31, 2022, thus overstating revenue in the NSBLP. An audit adjustment of this amount was proposed to reflect a payable back to TEA. TEA deducted the duplicate claim from the District?s September 2022 reimbursement claim. Recommendation - Once fully staffed, we recommend that the Chief Financial Officer (CFO) review all claim reimbursements and verify actual meal counts prior to claim submission by the cafeteria staff. Views of Responsible Officials and Planned Corrective Actions - Refer to the Corrective Action Plan prepared by District's management.

Categories

Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51766 2022-002
    Material Weakness
  • 51767 2022-002
    Material Weakness
  • 51769 2022-002
    Material Weakness
  • 51770 2022-003
    Material Weakness
  • 51771 2022-003
    Material Weakness
  • 628208 2022-002
    Material Weakness
  • 628209 2022-002
    Material Weakness
  • 628210 2022-002
    Material Weakness
  • 628211 2022-002
    Material Weakness
  • 628212 2022-003
    Material Weakness
  • 628213 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $585,426
10.553 School Breakfast Program $119,727
84.010 Title I Grants to Local Educational Agencies $116,883
84.425 Education Stabilization Fund $101,173
84.367 Improving Teacher Quality State Grants $11,261
93.778 Medical Assistance Program $2,768
10.649 Pandemic Ebt Administrative Costs $614