Finding Text
Finding 2023-005 Food Service Commodities
Condition: The revenues recognized by the District for commodities received under the USDA Food Distribution Program were substantially less than the amount that the Minnesota Department of Education (MDE) reported as being remitted to the District (or to the District’s food service provider).
Criteria: The District is required to implement controls to ensure that value of commodities provided under the Food Distribution Program is both received by the District and properly reported.
Cause: The District’s contracted food service provider (FSP) receives commodities through the Food Distribution Program on behalf of the District. When commodities are received by the FSP, the FSP applies credits the invoices sent to the District, to represent the value of the commodities received. For the year ended June 30, 2023, the credits received by the District on these invoices totals $49,748. However, the MDE has reported commodities with an aggregate value of $62,538 as being remitted for the District.
Effect: The lack of controls surrounding the commodities received or reported through the Food Distribution Program could result in either the loss or misreporting of entitlements provided to the District.
Recommendation: We recommend management discuss this matter in further depth with the contracted food service provider and establish controls to ensure that all food service commodity entitlements are being properly realized and reported by the District.
Views of Responsible
Officials and Planned
Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.