Finding Text
2023-002: Compliance of Special Tests and Provisions – Non-Profit School Food Service Accounts Title and CFDA Number of the Federal Program: CFDA 10.553 School Breakfast Program, CFDA
10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children
Year Finding Originated: 2022
Compliance Requirement: Special Tests and Provisions
Name of Federal Agency: Department of Education
Pass-through Agency: Louisiana Department of Education
Questioned Costs: No questioned costs noted.
Condition: The School did not credit account for the food service account appropriately during the year.
Criteria: As described in 2 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i), the School must operate its food services on a non-profit basis; all revenue generated by the School food service must be used to operate and improve its food services.
Cause: The School did not appropriately maintain its food service accounting records.
Effect: The School was not in compliance with this program’s special test and provision compliance requirement.
Recommendation: Management should use the food service bank account for all food service transactions. Specifically, funds received and disbursed for food service activities should be deposited directly into the food service bank account and likewise all expenses for food services should be paid out of the food service bank account.
Management’s Corrective Action Plan: See page 32 for management’s corrective action plan