Finding Text
Criteria: California Department of education Management Bulletin SNP-27-2015 and CACFP-07-2015 require
educational agencies operating multiple child nutrition programs to separately account for program revenue and
expenses.
Condition: During our review expenditures we discovered that the District does not track expenses separately for
Child Nutrition Program and Child and Adult Care Food Program (CACFP). District does not maintain separate
invoices and they do not have an established interprogram vending agreement. The District only charged the CACFP
program $69,379 in 2022-23 fiscal years, all other expenses were charged to the National School Lunch Program.
Context: Fiscal year 2022-23, occurring in the Cafeteria Fund.
Questioned Costs: Due to the lack of information, auditor is unable to determine the questioned costs.
Cause: The District does not have adequate controls in place to ensure that indirect costs are charged consistently
across the board to all categorical programs.
Effect: Common, shared expenses are not being charged in an equitable, logical manner between the programs.
Recommendation: District should establish an interprogram vending agreement and determine how much the
National School Lunch program was charged and subsequently reimburse the program.
Views of Responsible Officials: Keppel Union School District has been working with consultants and auditors to
establish an interprogram vending agreement to properly move expenses from 53100 to 53200 each month.