Finding 979901 (2023-005)

Finding 2023-005 – Federal Agency Review Significant Deficiency in Internal Controls over Compliance; Noncompliance Federal Agency – United States Department of Agriculture Food and Nutritional Service Federal Program – CFDA 10.555 – National School Lunch Program Criteria: From the USDA’s Food & Nutritional Services (FNS) review conducted in March 2019 over fiscal year 2018, nine findings remain open.   Condition and context: Within the USDA FNS report, issues or findings in the following areas were noted: • Capital Expenditures & Management • Civil Rights Training • Civil Rights Complaint Procedures • Inventory Management • Meal Counting, Record Keeping • Procurement • Reporting, Audit Tracking • Reporting, Allowable Costs • Special Dietary Accommodations Cause: Insufficient training and oversight of program personnel with respect to program requirements may have contributed to the lack of compliance with program requirements. Effect: The Territory is not in compliance with the USDA Food & Nutritional Service Requirements. Questioned costs: None Recommendation: The Territory should continue to implement the corrective action provided by the USDA FNS in their report dated March 28, 2019 and await subsequent audit by the USDA FNS for approval completeness of corrective action.