Finding Text
Reporting 2022-001 Significant Deficiency in Internal Control over Compliance Federal Program(s) ? National School Breakfast and National School Lunch Program Federal Agency(s) ? United States Department of Agriculture Pass-Through Entity(ies) ? New York State Department of Education CFDA Number(s) ? 10.553, 10.555 Pass-through Number(s) ? N/A Federal Award Year ? June 30, 2022 Condition/context: During our audit of the School's major programs, we detected certain deficiencies in internal control over compliance. The School submitted vouchers for September 2021 and October 2021 late. The submission exceeded the required 60 days following the last day of the month covered by the claim. The September 2021 voucher could not be accessed and verified by auditors. Criteria: In accordance with the Uniform Guidance Compliance Supplement, the School must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim. Cause: The School lunch director resigned from the School during September 2021 as such the director did not communicate to the management team, that the member?s credentials were about to expire. The credentials lapsed and obtaining new credentials took a significant amount of time as a result, the school lunch claim reimbursement was delayed. Effect: Because of lack of supporting documentation, the report submitted was unable to be verified and the reporting deadline was not met. Auditors? Recommendation: Management should maintain a checklist of all specific due dates associated with Uniform Guidance (?UG?) compliance, including credential renewals, voucher submissions, UG report due date, and other reporting requirements. Management Response: Management is aware of the reporting deadlines associated with voucher claims. Unfortunately, a staff member left the School and failed to file the annual renewal report, which resulted in the School being locked out of the vouchering system. The School immediately filed to renew but due to the time it took for the renewal process the September and October vouchers were filed beyond the reporting deadline. This has been rectified and procedures have been implemented whereby the School?s CFO reviews the renewal application to ensure timely filing.