Finding Text
SIGNIFICANT DEFICIENCY (FEDERAL PROGRAM NOT AUDITED AS A MAJOR PROGRAM) U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553, 10.555, and 10.582 PASS-THROUGH NUMBER 1605 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-001.Special Tests and Provisions Criteria: A District must operate its child nutrition program on a non-profit basis. All revenues generated by the school food service must be used to operate and improve its food services (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7e(1)(i)). Condition: The District transferred funds from its food service fund to the operating fund to be used for operating activities and not for the benefit of the school food service, resulting in questioned costs totaling $78,530. Cause: The District failed to ensure all revenue generated from the food service program was used for the benefit of the program. "Effect or potential effect: The transfers out of the food service program were not used for the benefit of school food service resulting in questioned costs totaling $78,530. " Questioned costs: The amount of known questioned costs was $78,530. Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit for guidance regarding this matter. Views of responsible officials: Arkansas DESE will be contacted for guidance before any food service surplus is transferred to ensure Ark. Code is followed regarding the Child Nutrition Program.