EIN: 383902376
UEI: CZNJWQK4ME66
Audited by: NIGRO & NIGRO, PC
Oversight agency: 84 [Department of Education]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 23, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 23, 2024 (766 days ago).
What is a management decision? →The District records revenues for the two programs separately and then transfers the revenues from the CACFP resource to the NSLP resource based on an internal cost ratio. This method understates both revenues and expenditures in the CACFP and overstates them in NSLP. Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated through the transfer of expenditures. The amount of the variance was $533,461.22. Cause: The District transferred CACFP revenue amounts to the NSLP resource instead of transferring the costs based on the allocation to the CACFP. Recommendation: We recommend that the District review the cost allocations and insure that all expenditures are allocated to the correct programs. District’s Response: The District will review the cost allocation and ensure that all expenditures are allocated between the two nutrition programs.
Show full finding ▾Hide full finding ▴Criteria: An interagency agreement authorizes the school food authority (SFA) to operate two programs within its one facility and utilize the same resources. Costs and expenditures may be tracked collectively, and the CACFP is billed based on the internal cost ratio. Context: This is a repeat finding of 2022-001. Condition: The District records revenues for the two programs separately and then transfers the revenues from the CACFP resource to the NSLP resource based on an internal cost ratio. This method understates both revenues and expenditures in the CACFP and overstates them in NSLP. Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated through the transfer of expenditures. The amount of the variance was $533,461.22. Cause: The District transferred CACFP revenue amounts to the NSLP resource instead of transferring the costs based on the allocation to the CACFP. Recommendation: We recommend that the District review the cost allocations and insure that all expenditures are allocated to the correct programs. District’s Response: The District will review the cost allocation and ensure that all expenditures are allocated between the two nutrition programs.
For the 2022-23 School Year, the District failed to correctly allocate expenditures to the CACFP accounts. In order to correct this action for the 2023-24 school year, the Director of Fiscal services will work with the Director of Child nutrition to reconcile each program and complete the cost allocation worksheet. The District utilizes a direct cost vending agreement, which will allocate the costs in an allowable manner. The Director of Fiscal Services will be responsible for making the transfer of expenditures from NSLP accounts to the CACFP accounts. The Director of Child Nutrition will verify the transfers have been completed correctly before the books are closed
2022-001
FAC accepted this audit on January 17, 2023 — management decision was due July 17, 2023.
Although the use of a vending agreement is allowable, the District did not allocate the cost of the program properly. This caused the NSLP program to be overburdened with program costs. Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated properly. The amount of the variance was $390,951. Cause: The District was unaware of the rules related to the inter-district vending calculation Recommendation: We recommend that the District review the cost allocations and ensure that all expenditures are allocated to the correct programs. Views of Responsible Officials: The District will review the cost allocation and ensure that all expenditures are correctly allocated between the two nutrition programs.
Show full finding ▾Hide full finding ▴Program Identification:Federal Agency: U.S. Department of Agriculture Pass-through Entity: California Department of Education Program Names: Child Nutrition Cluster:National School Lunch Program (AL No. 10.553, 10.553) Child and Adult CARE Food Program (AL No. 10.558) Criteria: The District utilizes a direct cost vending agreement. This allows all costs to be coded to National School Lunch Program (NSLP) and then the Child and Adult Food Care Program (CACFP) is charged for its calculated cost. The reimbursement rate to CACFP is determined annually based on cost experience. The current year rate was based on fiscal year 2021-22 actual costs. Context: Not applicable. Condition: Although the use of a vending agreement is allowable, the District did not allocate the cost of the program properly. This caused the NSLP program to be overburdened with program costs. Effect/Questioned Costs: The cost split between CACFP and NSLP was not allocated properly. The amount of the variance was $390,951. Cause: The District was unaware of the rules related to the inter-district vending calculation Recommendation: We recommend that the District review the cost allocations and ensure that all expenditures are allocated to the correct programs. Views of Responsible Officials: The District will review the cost allocation and ensure that all expenditures are correctly allocated between the two nutrition programs.
For the 2021-22 school year, the District failed to correctly allocate expenditures to the CACFP accounts. In order to correct this action for the 2022-23 School Year, the Director of Fiscal Services will work with the Director of Child Nutrition to reconcile each program and complete the Cost Allocation Worksheet. The District utilizes a direct cost vending agreement, which will allocate costs in an allowable manner. The Director of Fiscal services will be responsible for making the transfer of expenditures from the NSLP accounts to the CACFP accounts. The Director of Child Nutrition will verify the transfers have been completed correctly befor the books are closed. Contacts: Kevin Olson, Lori Toms(Director of Fiscal Services), and Suzanne Stamp(Director of Child Nutrition).
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