Finding Text
Finding 2022-006 Information on the federal program: Subject: Child Nutrition Cluster - School Food Accounts Federal Agency: Department of Agriculture Federal Programs: National School Lunch Program Assistance Listing Number: 10.555 Federal Award Numbers and Years (or Other Identifying Numbers): FY 20-21, FY 21-22 Pass-Through Entity: Indiana Department of Education Compliance Requirement(s): Special Tests and Provisions -School Food Accounts Audit Finding: Material Weakness Criteria: 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)...." Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Special Tests and Provisions School Food Accounts compliance requirement. Section III ? Federal Award Findings and Questioned Costs (Continued) FINDING 2021-006 (Continued) Cause: Management had not developed a system of internal control that would have ensured compliance with the grant agreement and the Special Test and Provision School Food Accounts compliance requirement. Effect: The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the Special Tests and Provisions -School Food Accounts compliance requirement. Questioned Costs: There were no questioned costs identified. Context: There was no documented secondary, formal review over the receipting of monies received/deposited from the IDOE for monthly Child Nutrition Cluster reimbursement claims to make sure the receipts are properly posted to the school lunch food. Identification as a repeat finding: No. Recommendation: We recommended that the School Corporation's management establish a system of internal control related to the grant agreement and the and the Special Tests and Provisions -School Food Accounts compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.