Logansport Community School Corporation

FINDING 2019-001 Subject: Child Nutrition Cluster - Special Tests and Provisions - Paid Lunch Equity Federal Agency: Department of Agriculture Federal Program: National School Lunch Program CFDA Number: 10.555 Federal Award Numbers and Years (or Other Identifying Numbers): FY 2017, FY 2018, FY 2019 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Special Tests and Provisions - Paid Lunch Equity Audit Finding: Material Weakness Condition and Context An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Special Tests and Provisions - Paid Lunch Equity compliance requirement. The Food Service Director prepared the paid lunch equity calculation without review or oversight to ensure the accuracy of the calculation. The lack of controls was isolated to fiscal year 2017-2018. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." Cause The School Corporation's management had not developed a system of internal controls to ensure compliance with the grant agreement and the Special Tests and Provisions - Paid Lunch Equity compliance requirement. Effect The failure to establish an effective internal control system placed the School Corporation at risk of noncompliance with the grant agreement and the compliance requirement. A lack of segregation of duties within an internal control system could have also allowed noncompliance with the compliance requirement and allowed the misuse and mismanagement of federal funds and assets by not having proper oversight, reviews, and approvals over the activities of the program. Questioned Costs There were no questioned costs identified. Recommendation We recommended that the School Corporation's management establish a system of internal controls to ensure compliance related to the grant agreement and the Special Tests and Provisions - Paid Lunch Equity compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.

FINDING 2019-001 Contact Person Responsible for Corrective Action: Gregory E. Korreckt, Controller/Treasurer Contact Phone Number: (574) 722-2911 Views of Responsible Official: We concur with the finding, in order to ensure compliance with requirements related to the grant agreement and the Special Tests and Provisions ? Paid Lunch Equity compliance requirement the following Corrective Action Plan has been implemented. Description of Corrective Action Plan: Food Service Director to prepare the paid lunch equity calculation. Controller/Treasurer to verify calculation. Both Food Service Director and Controller/Treasurer to sign and date the calculation as approved. Anticipated Completion Date: Corrective action as noted above for: Finding 2019-001 was implemented for the 2018-19 School Year

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