Finding Text
2024-002 – MATERIAL WEAKNESS - FEDERAL COMPLIANCE – CHILD NUTRITION CLUSTER (50000)
FEDERAL PROGRAM: Child Nutrition Cluster
FEDERAL AGENCY: U.S. Department of Agriculture
AWARD YEAR: 2023-2024
ASSISTANCE LISTING NUMBER: 10.555
NAME OF PASS-THROUGH ENTITY: California Department of Education
Criteria: The Uniform Guidance Department of Agriculture section under the compliance requirements Activities
Allowed or Unallowed, and Allowable Costs state that costs charged be supported by appropriate
documentation, and correctly charged as to account, amount and period.
Condition: As a result of our audit procedures, accounts receivable was not recorded for the March 2024, April
2024 and June 2024 funds once the monthly reimbursement was submitted to CNIPS. There were no instances
noted of unallowable costs but rather not recording the revenue in the proper period.
Cause: The District does not have proper controls in place to track accounts receivable and detect when funds
have not been received for an extended period of time.
Context: 10.555 Child Nutrition Cluster was audited as a major program in fiscal year 2022-23. Procedures
were performed as a follow up to the finding noted at 2023-002 in accordance with 2CFR 200.516(a).
Effect: Child Nutrition revenue related to the March, April and June 2024 reimbursements was not recorded
and the Cafeteria Fund Revenue and Accounts Receivable was understated by $47,404.
Fiscal Impact/Questioned Costs: The net questioned costs totaled $47,404.
Recommendation: This is a repeat finding. We recommend the District implement controls to properly record
accounts receivable for all federal programs and monitor funds to ensure the District is receiving federal awards
timely.
Views of Responsible Officials and Planned Corrective Actions: The District agrees and has already
implemented processed to ensure receivables are created with each claim created in CNIP.