Finding 9488 (2023-001)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-01-23
Audit: 13071
Auditor: Nigro & Nigro PC

AI Summary

  • Core Issue: The District is incorrectly transferring revenues from the CACFP to the NSLP, leading to an inaccurate financial picture.
  • Impacted Requirements: This practice results in an understatement of CACFP revenues and expenditures, with a questioned cost variance of $533,461.22.
  • Recommended Follow-Up: The District should thoroughly review and correct the cost allocations to ensure accurate reporting for both nutrition programs.

Finding Text

Criteria: An interagency agreement authorizes the school food authority (SFA) to operate two programs within its one facility and utilize the same resources. Costs and expenditures may be tracked collectively, and the CACFP is billed based on the internal cost ratio. Context: This is a repeat finding of 2022-001. Condition: The District records revenues for the two programs separately and then transfers the revenues from the CACFP resource to the NSLP resource based on an internal cost ratio. This method understates both revenues and expenditures in the CACFP and overstates them in NSLP. Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated through the transfer of expenditures. The amount of the variance was $533,461.22. Cause: The District transferred CACFP revenue amounts to the NSLP resource instead of transferring the costs based on the allocation to the CACFP. Recommendation: We recommend that the District review the cost allocations and insure that all expenditures are allocated to the correct programs. District’s Response: The District will review the cost allocation and ensure that all expenditures are allocated between the two nutrition programs.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 9485 2023-001
    Significant Deficiency Repeat
  • 9486 2023-001
    Significant Deficiency Repeat
  • 9487 2023-001
    Significant Deficiency Repeat
  • 9489 2023-001
    Significant Deficiency Repeat
  • 9490 2023-001
    Significant Deficiency Repeat
  • 9491 2023-001
    Significant Deficiency Repeat
  • 585927 2023-001
    Significant Deficiency Repeat
  • 585928 2023-001
    Significant Deficiency Repeat
  • 585929 2023-001
    Significant Deficiency Repeat
  • 585930 2023-001
    Significant Deficiency Repeat
  • 585931 2023-001
    Significant Deficiency Repeat
  • 585932 2023-001
    Significant Deficiency Repeat
  • 585933 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
16.710 Public Safety Partnership and Community Policing Grants $345,492
84.010 Title I Grants to Local Educational Agencies $303,947
84.424 Student Support and Academic Enrichment Program $299,609
84.367 Improving Teacher Quality State Grants $258,187
84.365 English Language Acquisition State Grants $192,398
10.555 National School Lunch Program $125,570
84.048 Career and Technical Education -- Basic Grants to States $55,522
84.027 Special Education_grants to States $52,423
84.173 Special Education_preschool Grants $35,070
10.558 Child and Adult Care Food Program $34,818
84.425 Education Stabilization Fund $13,841
10.553 School Breakfast Program $1,584