Finding 2024-002
material weakness
- Program
- CHILD AND ADULT CARE FOOD PROGRAM (10.558)
- Compliance requirement
- Allowable costs/cost principles
- FAC record
- FY2024 audit on fac.gov
Finding text from the filing
Finding No. 2024‐002: Allowable costs – Material weakness in internal control over compliance and compliance finding 10.559 Summer Food Service Program For Children (SFSP)
Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated.
Condition: During our review of personnel expenses, we noted that 24 of 24 sampled personnel costs were recorded at the net amounts paid to the employees on the manual grant program expenditure listing. This had the effect of understating the total costs charged to the grant program for both the taxes withheld from the employees as well as the company match. It also understated the total amount of grant program expenditures listed on the SEFA.
Cause: Management error.
Effect: Understatement of total costs charged to the grant program for both the taxes withheld from the employees as well as the company match. It also understated the total amount of grant program expenditures listed on the SEFA.
Questioned costs: None. There were no questioned costs as amounts paid to KCCO are based on meals served multiplied by the applicable rate per meal and are not based on actual costs incurred or reported.
Recommendation: Management should review the current procedures and the requirements of Section 200.430 and implement changes where necessary to ensure personnel costs are charged in accordance with Section 200.430.
Management’s Response: See corrective action plan.