WEDGWOOD CHRISTIAN SERVICES, INCNon-Profit

Criteria: Uniform Guidance, 2 CFR 200.303, requires that the Organization establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the non-Federal entity is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The Organization has not developed written procedures that are consistent with requirements imposed by the Uniform Guidance. Cause: The Organization has not dedicated the resources necessary to document written procedures that are in compliance with all requirements imposed by the Uniform Guidance. Effect: Control activities of the Organization were in some cases ineffective or nonexistent, thereby increasing the risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the Federal awards administered. Questioned Costs: $0 for all programs. Recommendation: We recommend that the Organization compile and adhere to Federal Written Procedures that support an effective control environment and provide reasonable assurance that the Organization is in compliance with all requirements imposed by the Uniform Guidance. Views of Responsible Officials: The Organization agrees with the finding and has compiled Federal Written Procedures prior to the date of this report. Procedures implemented will be adhered to by staff involved with grants management. Criteria: Uniform Guidance, 2 CFR 200.303, requires that the Organization establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the non-Federal entity is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: The Organization has not developed written procedures that are consistent with requirements imposed by the Uniform Guidance. Cause: The Organization has not dedicated the resources necessary to document written procedures that are in compliance with all requirements imposed by the Uniform Guidance. Effect: Control activities of the Organization were in some cases ineffective or nonexistent, thereby increasing the risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the Federal awards administered. Questioned Costs: $0 for all programs. Recommendation: We recommend that the Organization compile and adhere to Federal Written Procedures that support an effective control environment and provide reasonable assurance that the Organization is in compliance with all requirements imposed by the Uniform Guidance. Views of Responsible Officials: The Organization agrees with the finding and has compiled Federal Written Procedures prior to the date of this report. Procedures implemented will be adhered to by staff involved with grants management.

Criteria: Per 7 CFR 210.8, a school food authority shall establish internal controls which ensure the accuracy of lunch counts prior to the submission of the monthly Claim for Reimbursement. These internal controls shall include, at a minimum, comparisons of daily free, reduced price and paid meal counts against data which will assist in the identification of meal counts in excess of the number of free, reduced price and paid meals served each day to children eligible for such meals; and a system for following up on those meal counts which suggest the likelihood of meal counting problems. Furthermore, prior to the submission of a monthly Claim for Reimbursement, each school food authority shall review the lunch count data for each school under its jurisdiction to ensure its accuracy. Condition: Meals served, as reported on the monthly Claim for Reimbursement, did not reconcile to daily meal count checklists prepared at the point of service. We reviewed 2 of 12 monthly Claim for Reimbursements during the audit period, and noted a discrepancy between meals served and totals per the daily meal count checklists for both months. Furthermore, we noted that meal counts on one day had been included in Claim for Reimbursements in consecutive months. Cause: The Organization?s process for recording, monitoring, and reporting meals served is performed entirely by staff without assistance of point of sale technology, and is therefore subject to human error. Effect: Reporting of meals served on the monthly Claim for Reimbursement, for the periods tested, were not an accurate reflection of actual meals served. In total for the audit period, meals served were under-reported on monthly Claim for Reimbursements. Questioned Costs: $0 for all programs. Recommendation: The Organization should establish and implement effective internal controls that would identify and correct meal count errors prior to submission of the monthly Claim for Reimbursement. Views of Responsible Officials: The Organization agrees with the finding and is in the process of implementing controls to ensure the accuracy of monthly Claims for Reimbursement.