School District of Delavan Darien

Finding 2019-004 Child Nutrition Reimbursement Review CFDA/State ID # and Program 10.553 / 10.555 / 10.559 ? Child Nutrition Cluster Award Amounts - $1,647,656 Award Number ? N/A Criteria - 2 CFR 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control design to reasonably ensure compliance with federal laws, regulations, and program requirements. To minimize the risk of errors, internal controls should be in place for all program requirements, including appropriate review and approval of reports. Condition - During testing of reimbursement reports it was noted that there was no physical documentation of the review and approval. Questioned costs - Not determined. Cause - The District currently does not have proper documented internal controls for proper review of reimbursement reports before being submitted to the state agency. Effect - Lack of effective documented controls in the review function could result in reports being submitted with errors. Context - When reviewing the support for monthly reimbursement requests it was noted that there was no documentation of a review/approval process. Recommendation - The District should review its internal control procedures to consider adding a documented review and approval function.

Finding 2019-004 Child Nutrition Reimbursement Review CFDA/State ID # and Program 10.553 / 10.555 / 10.559 ? Child Nutrition Cluster Award Amounts - $919,481 Award Number ? N/A Recommendation ? The District should review its internal control procedures to consider adding a documented review and approval function Management?s Response - Although the District formerly required verbal or email confirmation from its Child Nutrition Coordinator before submitting child nutrition claims, it did not formerly require a signed document for its records. After learning that this was considered best practice, the District implemented a new policy which requires a signature by the preparer/submitter and reviewer of the claims. Once prepared and signed, the claim is provided to the Business Administrator for review and approval prior to any submissions being made.