Finding Text
Reference # and title: 2022-001 Allowable Costs and Cost Principles CFDA#, Federal Award Title, Federal Agency, Federal Award # and Year, and the Name of Pass-Through Entity: This finding relates to the following programs: Child Nutrition Cluster ? National School Lunch Program, CFDA #10.555, and School Breakfast Program, CFDA #10.553, for the Federal Award Year 2022 received from Federal Agency: U.S. Department of Education, passed through Louisiana Department of Education. Special Education Cluster ? IDEA Part B 611, CFDA #84.027A and Preschool Grants, CFDA #84.173. Criteria or specific requirement: In accordance with 2 CFR Part 200, costs should be necessary and reasonable for the performance of the federal programs and adequately supported by proper documentation. Good controls over the disbursements require expenditures to be properly reviewed and approved. Condition found: Payroll Disbursements: A total of 54 payroll checks were selected for testing from these 2 clusters. The following items were noted: ? One disbursement from the Child Nutrition Cluster did not include supervisor approval. ? One disbursement from the Child Nutrition Cluster die not include the substitute cook on the timesheet. ? Three disbursements from the Special Education Cluster did not include supervisor approval. Vendor Disbursements: A sample of Child Nutrition Cluster vendor disbursements was selected for testing several attributes. The following items were noted: ? Two invoices for one vendor were mistakenly paid to another vendor. ? Sales tax was paid on one invoice. ? On three invoices the invoice amount was more than the receiving report amount and the invoice amount was paid. Context: Payroll Disbursements: Twenty payroll disbursements for Child Nutrition were tested and two exceptions were noted. Thirty-four payroll disbursements for Special Education were tested and three exceptions were noted. Vendor Disbursements: Twenty vendor disbursements for Child Nutrition were tested and five exceptions were noted. Calculation of questioned costs for Child Nutrition Cluster: The known questioned costs was $999.43. The total population tested for the vendor disbursements for Child Nutrition was $59,477.31. The error rate was 1.68%. Total expenditures for the Child Nutrition program was $5,848,761. Using the error rate the projected questioned costs was $98,279.95. Possible asserted effect (cause and effect): Cause: Payroll Disbursements: The procedure is that the principal at each school should document approval of time by signing off on each day?s time. Some principals are not following this procedure. Vendor Disbursements: The persons receiving items at the schools are not noting on the purchase order if items are not received or if items are received that are not included on the purchase order.Effect: Payroll Disbursements: Time documentation for exceptions noted above does not include supervisor approval. Vendor Disbursements: Receiving report and invoice amounts do not agree in some instances with no explanation of the difference. Recommendations to prevent future occurrences: Payroll Disbursements: Principals should review procedures for documentation of time and procedures should be followed. Vendor Disbursements: Persons receiving items at the schools should note on the purchase order items that are not received or additional items that should be included on the purchase order. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2022 for the Child Nutrition Cluster and Special Education Cluster. Views of responsible officials: Personnel will be instructed on proper documentation for payroll and vendor disbursements.