Finding Text
Section III - Federal Award Findings and Questioned Costs Finding 2022-001 Lack of Internal Controls over Reporting Federal Agency: U.S. Department of Agriculture (passed through the State of Alaska) Pass-Through Entity: State of Alaska Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.582 Award Year: 2022 Type of Finding Material weakness in internal control over compliance Criteria: The program requires that each month?s claim for reimbursement and all data used in the claims review process be maintained on file. Accurate records must be maintained justifying all meals claimed and documenting that all program funds were spent only on allowable Child Nutrition Program costs. Condition/Context: During our testing of individual monthly claims, we sampled three out of the ten months that were submitted. While reviewing two of these reports, it was noted that the actual meal counts per the District?s records disagreed with those which were reported to the State. Both months under reported the number of allowable meals actually served. These errors were caused by improper data entry and were not detected by management during the review process. Cause: Lack of internal control over reporting. Effect: Loss of funding and/or over claiming meals served. Questioned Costs: None. Meals served were under reported to the State of Alaska Repeat Finding: This is a repeat finding of 2021-001, based on the number of deviations we consider this to be a systemic issue. Recommendation: Meal counts should be reviewed by a member of management and compared to the meal claims prior to submission to the State of Alaska. Managements Response: Management agrees with this finding, see Corrective Action Plan