Finding 596533 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-22
Audit: 19327
Organization: Harbor Springs Public Schools (MI)

AI Summary

  • Core Issue: The School District inaccurately claimed meal reimbursements under the summer food service program due to ineffective internal controls.
  • Impacted Requirements: Compliance with OMB guidelines, which mandate that reimbursements must match the total meals served.
  • Recommended Follow-Up: Implement a reconciliation process for meals served before submitting reimbursement requests and return to using meal counting software.

Finding Text

2022-01 Reporting Program Title: Child Nutrition Cluster ALN (s): 10.553 & 10.555 Federal Award Number: 211961, 221961, 220910, 211971, 221971 & Entitlement Commodities Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Reporting; significant deficiency in internal control, immaterial noncompliance Criteria: In accordance with OMB requirements, the District can only request funds for meal reimbursements based on total meals served, no more or no less. Condition: The School District did not claim the correct amount of meals when filing for meal reimbursements under the summer food service program. Cause: The District failed to have controls in place that would prevent, detect, or correct an incorrect monthly meal claim. Effect: The District?s internal controls over compliance were found to be ineffective which caused instances of immaterial noncompliance. Perspective Information: The finding appears to be an isolated instance. No sampling was necessary to determine this finding. Identification of Repeat Findings: None Recommendation: The District should begin reconciling meals served prior to requesting reimbursements for said meals. View of Responsible Officials: Due to covid, the District could not use their typical internal controls as it related to meal counts. In the elementary school, the cooks had to hand count meals served rather than using meal counting software which is what was used in prior years. These hand counts were hard to follow which caused issues when doing monthly reconciliations prior to making meal claim reimbursements. The District will be returning to using meal counting software for all schools and eliminating hand count sheets all together.

Categories

Subrecipient Monitoring Cash Management Reporting School Nutrition Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20090 2022-001
    Significant Deficiency
  • 20091 2022-001
    Significant Deficiency
  • 20092 2022-001
    Significant Deficiency
  • 596532 2022-001
    Significant Deficiency
  • 596534 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $358,059
84.425 Education Stabilization Fund $149,499
21.019 Coronavirus Relief Fund $78,828
84.010 Title I Grants to Local Educational Agencies $65,515
10.553 School Breakfast Program $28,945
84.367 Improving Teacher Quality State Grants $16,545
84.060 Indian Education_grants to Local Educational Agencies $12,194
84.424 Student Support and Academic Enrichment Program $9,898
21.027 Coronavirus State and Local Fiscal Recovery Funds $8,178
93.778 Medical Assistance Program $5,495
10.649 Pandemic Ebt Administrative Costs $614