Finding 614760 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-07

AI Summary

  • Core Issue: The Charter School lacks effective internal controls for accurately reporting meal counts, leading to discrepancies in reimbursement claims.
  • Impacted Requirements: Non-compliance with 7 CFR 210.8 due to errors in meal count reporting for November 2021 and February 2022, with discrepancies nearing five percent.
  • Recommended Follow-Up: Review and improve internal processes to ensure compliance with meal count reporting and maintain documentation for three years as per 7 CFR 210.23(c).

Finding Text

Criteria: In accordance with 7 CFR 210.8, the Charter School is required to establish internal controls which ensures the accuracy of meal counts prior to the submission of the monthly reimbursement claims. Condition and Context: Internal controls over compliance are not designed and implemented in a manner which ensures accurate reporting of meals served. The months of November 2021 and February 2022 were selected for testing the underlying support for meals served compared to the meals submitted for reimbursement. In both of these months there were discrepancies in the various categories, Breakfast, Lunch and Snack, compared to what the Charter School submitted for reimbursement. The error rates approached five percent for some of these categories. Further, for the months of November 2021 and February 2022 the Charter School submitted for reimbursement less meals than their records supported, the net difference was less than $6,000. Cause: Due to turnover in the Charter School?s operational staffing, the procedures became decentralized leading to errors in the accumulation phase of the count records. Effect or Potential Effect: Errors were made in claiming process and went undetected by the Charter School. Recommendation: The Charter School needs to examine their current processes and make the necessary adjustments to become in compliance with 7 CFR 210.8. They should also ensure that this supporting documentation is maintained for a period of three years following the final submission for reimbursement for each fiscal year as required by 7 CFR 210.23(c). Properly designed and implemented procedures will ensure that the Charter School remains in compliance with program requirements and is appropriately reimbursed.

Categories

Cash Management HUD Housing Programs Reporting School Nutrition Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 38317 2022-001
    Significant Deficiency
  • 38318 2022-001
    Significant Deficiency
  • 614759 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $4.45M
84.010 Title I Grants to Local Educational Agencies $1.45M
10.553 School Breakfast Program $869,649
84.282 Charter Schools $357,723
10.555 National School Lunch Program $346,104
84.367 Improving Teacher Quality State Grants $196,396
84.424 Student Support and Academic Enrichment Program $100,009
10.649 Pandemic Ebt Administrative Costs $3,005