BNOS MALKA ACADEMYNon-Profit

Criteria: Expenditures must be allowable and consistent with 2CFR Subpart E Cost Principles and the USDA?s FNS Instructions. Condition: Bnos Malka Academy expended program funds on a capital expenditure without receiving prior approval by the state or federal agency as required by 2CFR Subpart E section 200.439 and FNS Instruction 796-2 rev.4. Cause: Management was not aware that prior approval is required for this type of expenditure. Effect: The expenditure may be deemed unallowable. Recommendation: Bnos Malka Academy should replenish its food service account in the amount of $100,000, to be expended on allowed program costs of the food service program it currently runs. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding and will act according to the above recommendation. We will replenish the funds within the next few days.

Criteria: Expenditures must be allowable and consistent with 2CFR Subpart E Cost Principles and the USDA?s FNS Instructions. Condition: Bnos Malka Academy allocated administrative wages to the food service program. Management was unable to provide us with documentation supporting the hours administrative employees worked specifically for the food service program, as required by FNS Instruction 796-2 rev.4. Cause: Management was not aware that such documentation was required to be retained for three years. Effect: The wages may be deemed unallowable expenditures. Recommendation: Procedures should be implemented requiring employees who perform both program and non-program activities to maintain daily records of hours worked for the food service program. Such records will be signed monthly by the employee and retained by the School?s payroll department in accordance with the grant?s documentation retention requirements. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding and will act according to the above recommendation.