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Department of Defense: Review of Food Service Operations

Department of Defense (sub to Cotton and Company)

In August 2007, through Cotton and Company, Evergreen Solutions employees were contracted to conduct an independent audit of the Army and Air Force Exchange Services (AAFES) School Meal Program (SMP) to assess the accuracy of collections and accounting for the Department of Defense Dependent Schools (DODDS). The SMP is a USDA Child Nutrition Entitlement Program funded by three primary sources: USDA reimbursements and commodities, Department of Defense Education Activity (DODEA) appropriations, and the meal prices charges to students.

The audit reviewed SMP operations annually from government fiscal years 2004-2006 and include information from AAFES Headquarters in Dallas, Texas as well as 10 schools and five accounting offices in three European (Germany, Italy and the United Kingdom) and two Pacific countries (Korea and Japan). Areas under review include claims for reimbursement, accounting systems, annual reconciliation processing, financial management, financial reporting, staffing, foreign currency exchange, and nutritional adequacy.