THE VOLCANO SCHOOL OF ARTS & SCIENCES PUBLIC CHARTER SCHOOLLocal Government

Finding 2021-001 ? Lack of Internal Control over Meal Count, Assistance Listing 10.553 School Breakfast Program, Assistance Listing 10.555 National School Lunch Program Criteria: National nutrition program regulations require that school food authorities (SFAs) must establish internal controls that ensure the accuracy of meal counts prior to submission of the monthly claim for reimbursement. Condition: During the meal count testing, meal count variances were noted in 1 of 25 days tested between the Daily Count Sheets and claims submitted for reimbursement. ? On November 25, 2020, actual count from Daily Counts were 128 lunches and 127 breakfast verses 125 lunches and 123 breakfast claimed. This caused $25.66 under reimbursed amount. ? It was noted certain daily count sheets were not straight forward and not easy to follow without any noted documentation to support the meals claimed for the situations on these days. This is due to the date on certain Daily Counts Sheets not matching with the date in Edit Check Sheet for meals claimed. Cause of Condition: Lack of consistent internal control and procedures over the meal count process. Potential Effect: No material questionable costs was caused by above condition. An over or under claim for reimbursement in a material amount could occur. Questioned Costs: None Context: The School went through personnel changes in the nutrition program, as well as the bulk meal program was new to the School. As a result, internal control procedures and policy were not established completely nor followed consistently. Recommendation: We recommend a second review and signoff on the Daily Count Sheets by someone in administration when preparing the Edit Check Sheet to add additional segregation of duties and verification of counts. We further recommend to make the Daily Count Sheets straight forward to reflect the actual meal count and distribution date.

Finding 2021-002 - Incomplete and Incorrect SEFA, Assistance Listing 10.553 School Breakfast Program, Assistance Listing 10.555 National School Lunch Program Criteria: Part 200. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart F. Audit Requirements subgroup 47. Auditees Section 200.510, Financial statements: The auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ? 200.502 Basis for determining Federal awards expended. Condition: ? It was noted the schedule of expenditures of federal awards (SEFA) did not include separate lines for the School Breakfast Program and the National School Lunch Program which are identified by different CFDA numbers. ? The Integrated Ocean Observing System expenditures and COVID related funds received from Vibrant Hawaii included on the SEFA should not have been as the School was considered a contractor rather than an award recipient. ? Additional federal programs? included either incorrect Assistance Listing numbers or incorrect expenditure amounts on the SEFA. Cause of Condition: Lack of internal controls over the preparation of the schedule of expenditures of federal awards. Potential Effect: As a result of the condition above, it is feasible that Management was not aware of some of the compliance requirements pertaining to the federal awards. Questioned Costs: None Context: Due to the personnel change in accounting department, there was a lack of oversight to ensure complete and accurate SEFA preparation. Recommendation: We recommend Management establish procedures and controls to properly identify the funding source of all grant awards and the applicable Assistance Listing numbers. Management should track the federal funds it receives and review the applicable compliance requirements to ensure proper grant spending, monitoring and reporting.