Finding 964227 (2022-001)

Finding 2022-001 Activities Allowed or Unallowed AL #10.559 U.S. Department of Agriculture – Child Nutrition Cluster/Summer Food Service Program For Children. Criteria: Proper internal control dictates that program expenses are reviewed and approved to ensure they are allowable and meet program criteria before payment. Condition: During the audit, we noted that 9 of the 40 cash disbursements tested had no evidence that a review took place before payment. Cause: The Entity’s policies are not properly being followed by the Food Service Program for expenditures. Effect: Internal controls over cash disbursements, including activities allowed or unallowed, were not functioning as designed which could allow for unallowable purchases to be made. Questioned Costs: None noted. Recommendation: We recommended that the Machne Naarim follow their internal control procedures and ensures all expenditures document proper approval prior to purchases being made. Management’s Response: Machne Naarim agrees with the finding and has implemented these changes during the summer of 2023 to better control their Food Service Department.