Trico Community Unit School District #176Local Government

CRITERIA - The District employees are required to document their time and effort working on federal programs. Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires charges for salaries and benefits to be supported by proper documentation to ensure that charges are accurate, allowable, and properly allocated. CONDITION - During the testing of payroll charged to the Title I program, it was noted that time and effort certifications were not completed or did not contain the proper approvals. QUESTIONED COSTS - None CONTEXT - Exceptions were noted in two of the nine employees tested. EFFECT - Unallowable/unapproved expenditures could be charged to the program. CAUSE - Lack of oversight over the program. RECOMMENDATION - The District should take steps to ensure its internal control procedures are being followed at all times. MANAGEMENT'S RESPONSE - Management agrees with the finding.

Criteria: The Summer Food Service Program (SFSP) was established to ensure that children continue to receive meals when school is not in session. Districts that participate in the SFSP are able to request reimbursement for the free lunches they provide to the community and therefore, are not eligible to charge for lunches if they participate in the SFSP. As a result of the COVID-19 pandemic, the SFSP was allowed to operate when school is open during the regular school year in order to support access to nutritious meals while minimizing potential exposure to COVID-19. This eliminates the requirements to assess eligibility for the food program and to collect meal payments based on this assessment as all students are considered eligible for free meals. The District began participating in the SFSP in September 2020. Condition: The District charged students for meals while participating in the Summer Food Service Program. Questioned Costs: The District collected $29,703 for meals served to students from September 2020 through June 2021. Context: Collection of meal payments is not allowed when participating in the Summer Food Service Program. Effect: The District was in noncompliance with the Summer Food Service Program's requirements. Cause: The District was unaware that it was not allowed to charge for meals once it began participating in the Summer Food Service Program. Recommendation: We recommend the District review the requirements over the Summer Food Service Program (SFSP) to ensure they are in compliance. In addition, monies collected during the 2020-2021 school year while participating in the SFSP must be returned to the students. Management's response: Due to confusion concerning implementation of the Summer Food Service Program during fiscal year 2021, the District mistakenly continued to charge students for meals served based on their free, reduced, or paid status. Upon learning of this mistake, the District began the process of refunding the money collected to students for meals from September 2020 to June 2021. The District has not been charging for meals during the 2021-2022 school year.