Streator Township High School 40

Federal Program Name and Year: Child Nutrition Cluster - 2021 Project No.: 20 & 21 4210, 4220, 4225 CFDA No.: 10.553, 10.555, 10.559 Passed Through: ISBE Federal Agency: U.S. Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation): The Code of Federal Regulations (CFR) Title 7, part 210.14(b) states the school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Condition: The District has allowed net cash resources of the nonprofit school food service to exceed 3 months average expenditures. Questioned Costs: None. Context: The District did not spend the excess net cash resources of the nonprofit school food service that were accumulated in FY20. Effect: Noncompliance with the federal award program's resource (cash) management requirements could occur and not be detected and corrected timely. Cause: Management had not developed a system of internal control to ensure compliance with the Cash Management compliance requirement. Recommendation: Management unsuccessfully developed a plan to spend the excess funds previously accumulated. While monitoring of program income and expenditures occurred, the district did not reduce the excess below the 3 month of average expenditure prescribed limit. Management's response: There is no disagreement with this finding. A plan will be developed to monitor the net cash resources of the nonprofit school food service and spend existing accumulated amounts.

Condition: The District has monitored the net cash resources of the Child Nutrition program. Upon further review, it was determined that the net cash resources of the nonprofit school food service did exceed 3 months average expenditures. Plan: The District plans to spend the excess cash in the following year. Anticipated Date of Completion: June 2022 Name of Contact Person: Laurie Skromme, Bookkeeper Management response: There is no disagreement with the finding and the corrective action plan will be implemented.

2020-001

Federal Program Name and Year: Child Nutrition Cluster Project No.: 20-4210, 20-4220, & 20-4225 CFDA No.: 10.553, 10.555, & 10.559 Passed Through: Illinois State Board of Education Federal Agency: U.S. Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation) - The District is required to monitor the net cash resources of the nonprofit school food service program in accordance with Section 210.19 of the Code of Federal Regulations. The District is not to accumulate more than 3 months of expenditures. Condition - The District had established procedures to monitor the accumulation of Child Nutrition Funds, but due to the higher reimbursement rate and serving additional meals, the accumulations exceed 3 months of expenditures. Questioned Costs - None Context - Due to COVID-19, the District began a Summer Food Program to provide meals to ALL student under the age of 18. The District was not aware that those meals would be reimbursed at a higher rate and they were serving a much greater number of meals per day. Effect - The District accumulated funds much faster than anticipated and was unable to spend those accumulations to benefit the program prior to year end. Cause - Additional lunches served at a higher than anticipated reimbursement rate, while the vendor continued to provide the lunches at the same agree upon rate. Recommendation - Excess fund should be utilized to benefit the program or be returned to ISBE. Management's response - There is no disagreement with the finding related to the Child Nutrition program cash management compliance requirement. The District will implement a spending plan.

Condition: The District had established procedures to monitor the accumulation of Child Nutrition Funds, but due to the higher reimbursement rate and serving additional meals, the accumulations exceed 3 months of expenditures. Plan: A spending plan will be implemented related to the Child Nutrition program cash management compliance requirement. Anticipated Date of Completion: 12/1/2020 Name of Contact Person: Dr. Matthew Seaton, Superintendent Management Response: There is no disagreement with the finding and the corrective action plan will be implemented.