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Five‑year child nutrition audit finds one indirect‑cost reporting issue; district submits corrective action
Summary
A five‑year administrative review of Venus ISD child nutrition records found no major programmatic findings but recorded one audit finding related to the indirect cost rate charged to federal programs; district staff accepted responsibility and filed corrective action.
District staff reported the completed five‑year audit of the Venus ISD Child Nutrition program and an associated administrative review at the April 21 board meeting. The auditors reviewed procurement procedures, production records, menu documentation, on‑site monitoring, local wellness policy documentation, smart‑snack compliance and staff professional standards.
Administrator summary: The presenter (child nutrition staff) said there were no findings in most review areas but disclosed a single finding related to the indirect cost ratio applied to federal program expenditures. The presenter said Venus had not previously charged indirect costs to child nutrition. The auditor review found that the district’s approach to calculating and applying indirect cost charges did not conform to the auditors’ expectations for one fiscal decision the presenter made.
Details explained by staff: The presenter said district finance had applied an unrestricted indirect rate on ESSER funds previously and attempted to apply a mixed approach this audit cycle. Applying the full unrestricted rate to child nutrition would have moved $159,570 from child nutrition into the general fund (the presenter said that amount would have consumed much of child nutrition’s fund balance). Applying the restricted rate would have recouped $37,009.29. The presenter said she charged an intermediate amount ($78,858) based on her interpretation of permissible practice; auditors issued a finding for that approach. The presenter took ownership of the error, said the district submitted corrective action and stated that going forward the district will charge the restricted rate for federal programs where applicable.
Why it matters: Indirect cost charges reallocate federal program funds into the general fund to recover central administrative costs. The audit finding does not indicate misused funds, but the district will report corrective action and adjust its indirect cost practice going forward. The presenter said there is no fiscal note attached to the finding (no additional payment required), but staff will follow the auditors’ corrective instructions.
Board response: Trustees asked clarifying questions; the presenter reiterated acceptance of the finding and explained the corrective steps.
Ending: District staff said corrective action was submitted and the child nutrition review otherwise passed; the board received the report.
