Brownstown CUSD 201

BROWNSTOWN COMMUNITY UNIT SCHOOL DISTRICT 201 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ending June 30, 2021 SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 1. FINDING NUMBER: 2021- 003 2. THIS FINDING IS: X New Repeat from Prior year? Year originally reported? 3. Federal Program Name and Year: Child Nutrition Cluster- 2021 & 2020 4. Project No.: 4225, Commodity Credit & Fresh Fruits and Vegetables 5. CFDA No.: 10.555 & 10.559 6. Passed Through: Illinois State Board of Education & U.S. Department of Defense 7. Federal Agency: United States Department of Agriculture 8. Criteria or specific requirement (including statutory, regulatory, or other citation) Internal controls over compliance with cash management require the District to have controls or procedures in place to monitor the program income of the food service program to ensure that annual profit does not exceed 3 months of operating expenses. 9. Condition No formal analysis of the profitability of the food service program is being prepared. 10. Questioned Costs None 11. Context Neither monthly, quarterly, nor annual formal food service program profitability analyses are being prepared. 12. Effect Noncompliance with cash management requirements could occur and not be detected. 13. Cause Food service costs and lunch revenues are monitored on an ongoing basis; however, no formal analysis is prepared for review by management or for compliance with the cash management requirements. 14. Recommendation Formal profitability analyses of the food service program should be periodically prepared to ensure compliance with Federal cash management requirements. 15. Management's response The auditor's recommendation will be implemented in the year ended June 30, 2022.