Congregation Darkei Tshivo of Dinov and AffiliateNon-Profit

Criteria: An SFA is required to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. An SFA must operate its food services on a non-profit basis; all revenue generated by the school food service must be used to operate and improve its food services (7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i)). Condition: Management maintained accounting records for the school food service but failed to use the school food service account exclusively for the food service program as required. Management self-identified the issue, and selfcorrected as they became aware of the requirement. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding. Cause: Management failed to identify the compliance requirement of maintaining fully separate accounting records for the school food service. Effect: Funds unrelated to the school food service were deposited in and withdrawn from the bank account used for the school food service. Recommendation: Management should maintain a bank account that is used exclusively for the school food service, and implement a system of controls that will mitigate the liklihood of future non-compliance. Views of Responsible Parties and Corrective Action Plan: Management concurs with the finding and has implemented a system to limit access to the school food service bank account. In addition, management has designated a responsible and capable employee to monitor the new system and to periodically review the terms, conditions and requirements governing any future grants to ensure compliance. Implementation of the corrective action is further evidenced by the bank account being used solely for school food service transactions once management recognized the issue.