Finding Text
2023-003 CASH MANAGEMENT (REPEAT FINDING)
MATERIAL WEAKNESS
Federal Program: Child Nutrition Cluster
Assistance Listing Number: 10.553 & 10.555
Repeat Finding
This is a repeat finding from the immediately prior audit report. The prior audit finding number was 2022-
001.
Criteria
Per 7 CFR 210.14(b) and 7 CFR 220.7(e)(1)(iv), the “school food authority shall limit its net cash
resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food
service or such other amount as may be approved by the State agency.”
Condition
Based on the School’s expense reporting, a three-month average of expenditures would be approximately
$129,000. The School was carrying a balance in excess of the three months average of expenditures in all
twelve months, including a balance of approximately $315,000 as of June 30, 2023.
Cause
The School has not properly monitored the balance of these funds to make sure funds were expended in
a manner to allow for compliance with federal guidelines.
Effect
This material weakness in internal control resulted in the School having an excessive cash balance in its
meal program funds and not being in compliance with 7 CFR 210.14(b) and 7 CFR 220.7(e)(1)(iv).
Recommendation
We recommend the School develop internal controls to allow for closer monitoring of the balance of these
funds. We also recommend the School proactively communicate the cash management finding to the
Indiana Department of Education to discuss a remedial plan of action.
Views of Responsible Officials
The School’s Corrective Action Plan is included on pages 27.