ESCANABA AREA PUBLIC SCHOOLSLocal Government

2020-001 ? Cost Principles - Food Service Non-payroll Disbursements Finding Type. Significant Deficiency in Internal Controls over Compliance and Immaterial Noncompliance Federal program(s) U.S. Department of Agriculture Child Nutrition Cluster (CFDA# 10.553, 10.555 and 10.559); Passed through MDE; All project numbers Criteria. The District's Federal Awards Manual states that, "Grant expenditures will be approved by department heads/program managers initially through the purchase order process, and again with the bill or invoice is received. This will be evidenced by signature or initials and date on the invoice. Accounts payable disbursements will not be processed for payment by the Business Office until necessary approval has been obtained." Condition. During our testing of disbursements from the food service fund we noted that invoices tested did not bear a signature or date to document the approval of the food services director. Cause. This condition appears to be the result of management not consistently enforcing the written disbursement policy. Effect. As a result of this condition, the District omitted a key control established by their written grant policies. Questioned Costs. No costs have been questioned as a result of this finding, as the costs tested appeared to be properly supported. Recommendation. We recommend the District consistently apply its written policies to all cost centers and departments. View of Responsible Official. Kevin Pascoe, Director of Finance and Nancy LaFave, Food Service Director Estimated Completion Date. June 30, 2021