Finding 84268 (2022-003)

Child Nutrition Cluster, COVID-19 National School Lunch Program - Assistance Listing 10.555; passed through the Pennsylvania Department of Education, Grant Period - Year Ended June 30, 2022. Criteria: Food Service Fund is accounted for using the accrual basis of accounting and the flow of all economic resources. This basis of accounting and measurement focus requires that revenues are recorded when earned. Condition: The District recognized revenue that was not earned as of year end. Cause: The District's schedule used to record changes in unearned revenue at year end included grant expenditures that did not occur until after year end. Effect: Food Service Fund unearned revenue was understated $7,606 and nonoperating revenue from federal sources was overstated $7,606. Questioned Costs: Not applicable. Perspective Information: Not applicable. Identification of Repeat Findings: Not applicable. Recommendation: The individuals who prepare and review the schedule to record changes in unearned revenue at year end should ensure grant expenditures agree to the underlying accounting records. Views of Responsible Officials: Management agrees with the finding. Planned Corrective Action: See District's corrective action plan.