Audit 290492

Finding 2023-001 –Verification Federal Programs: U.S. Department of Agriculture Child USDA Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Summer Food Service Program for Children CFDA No. 10.559 Fresh Fruits and Vegetables CFDA No. 10.582 Compliance requirement: 7 CFR section 245.6 states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. Condition: During our testing of verification of income of households sampled during the year, we tested all households chosen for verification. During this testing, we noted households whose net income was used to calculate their eligibility instead of their gross income. Cause: The employee verifying the income incorrectly used net income instead of gross income when calculating income for eligibility guidelines. Effect: The breakdown of internal controls in this area could adversely affect households by allowing them to receive free or reduced lunches that they are ineligible for. Questioned Costs: None Context: Households determination of whether their students will be eligible for free or reduced lunch is based on their gross income calculated based on the frequency of payment from the income verification support provided. By incorrectly using net income, households were allowed to continue receiving free or reduced lunch instead of having to pay for lunches based on income guidelines. Recommendation: Procedures should be implemented requiring that all income should be verified using proper documentation and verification results review by at least two or more qualified individuals. Views of responsible officials: Management is in agreement and will implement a corrective action plan.

Finding 2023-001 –Verification Federal Programs: U.S. Department of Agriculture Child USDA Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Summer Food Service Program for Children CFDA No. 10.559 Fresh Fruits and Vegetables CFDA No. 10.582 Compliance requirement: 7 CFR section 245.6 states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. Condition: During our testing of verification of income of households sampled during the year, we tested all households chosen for verification. During this testing, we noted households whose net income was used to calculate their eligibility instead of their gross income. Cause: The employee verifying the income incorrectly used net income instead of gross income when calculating income for eligibility guidelines. Effect: The breakdown of internal controls in this area could adversely affect households by allowing them to receive free or reduced lunches that they are ineligible for. Questioned Costs: None Context: Households determination of whether their students will be eligible for free or reduced lunch is based on their gross income calculated based on the frequency of payment from the income verification support provided. By incorrectly using net income, households were allowed to continue receiving free or reduced lunch instead of having to pay for lunches based on income guidelines. Recommendation: Procedures should be implemented requiring that all income should be verified using proper documentation and verification results review by at least two or more qualified individuals. Views of responsible officials: Management is in agreement and will implement a corrective action plan.

Finding 2023-001 –Verification Federal Programs: U.S. Department of Agriculture Child USDA Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Summer Food Service Program for Children CFDA No. 10.559 Fresh Fruits and Vegetables CFDA No. 10.582 Compliance requirement: 7 CFR section 245.6 states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. Condition: During our testing of verification of income of households sampled during the year, we tested all households chosen for verification. During this testing, we noted households whose net income was used to calculate their eligibility instead of their gross income. Cause: The employee verifying the income incorrectly used net income instead of gross income when calculating income for eligibility guidelines. Effect: The breakdown of internal controls in this area could adversely affect households by allowing them to receive free or reduced lunches that they are ineligible for. Questioned Costs: None Context: Households determination of whether their students will be eligible for free or reduced lunch is based on their gross income calculated based on the frequency of payment from the income verification support provided. By incorrectly using net income, households were allowed to continue receiving free or reduced lunch instead of having to pay for lunches based on income guidelines. Recommendation: Procedures should be implemented requiring that all income should be verified using proper documentation and verification results review by at least two or more qualified individuals. Views of responsible officials: Management is in agreement and will implement a corrective action plan.

Finding 2023-001 –Verification Federal Programs: U.S. Department of Agriculture Child USDA Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Summer Food Service Program for Children CFDA No. 10.559 Fresh Fruits and Vegetables CFDA No. 10.582 Compliance requirement: 7 CFR section 245.6 states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. Condition: During our testing of verification of income of households sampled during the year, we tested all households chosen for verification. During this testing, we noted households whose net income was used to calculate their eligibility instead of their gross income. Cause: The employee verifying the income incorrectly used net income instead of gross income when calculating income for eligibility guidelines. Effect: The breakdown of internal controls in this area could adversely affect households by allowing them to receive free or reduced lunches that they are ineligible for. Questioned Costs: None Context: Households determination of whether their students will be eligible for free or reduced lunch is based on their gross income calculated based on the frequency of payment from the income verification support provided. By incorrectly using net income, households were allowed to continue receiving free or reduced lunch instead of having to pay for lunches based on income guidelines. Recommendation: Procedures should be implemented requiring that all income should be verified using proper documentation and verification results review by at least two or more qualified individuals. Views of responsible officials: Management is in agreement and will implement a corrective action plan.

Finding 2023-001 –Verification Federal Programs: U.S. Department of Agriculture Child USDA Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Summer Food Service Program for Children CFDA No. 10.559 Fresh Fruits and Vegetables CFDA No. 10.582 Compliance requirement: 7 CFR section 245.6 states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. Condition: During our testing of verification of income of households sampled during the year, we tested all households chosen for verification. During this testing, we noted households whose net income was used to calculate their eligibility instead of their gross income. Cause: The employee verifying the income incorrectly used net income instead of gross income when calculating income for eligibility guidelines. Effect: The breakdown of internal controls in this area could adversely affect households by allowing them to receive free or reduced lunches that they are ineligible for. Questioned Costs: None Context: Households determination of whether their students will be eligible for free or reduced lunch is based on their gross income calculated based on the frequency of payment from the income verification support provided. By incorrectly using net income, households were allowed to continue receiving free or reduced lunch instead of having to pay for lunches based on income guidelines. Recommendation: Procedures should be implemented requiring that all income should be verified using proper documentation and verification results review by at least two or more qualified individuals. Views of responsible officials: Management is in agreement and will implement a corrective action plan.

Finding 2023-001 –Verification Federal Programs: U.S. Department of Agriculture Child USDA Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Summer Food Service Program for Children CFDA No. 10.559 Fresh Fruits and Vegetables CFDA No. 10.582 Compliance requirement: 7 CFR section 245.6 states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. Condition: During our testing of verification of income of households sampled during the year, we tested all households chosen for verification. During this testing, we noted households whose net income was used to calculate their eligibility instead of their gross income. Cause: The employee verifying the income incorrectly used net income instead of gross income when calculating income for eligibility guidelines. Effect: The breakdown of internal controls in this area could adversely affect households by allowing them to receive free or reduced lunches that they are ineligible for. Questioned Costs: None Context: Households determination of whether their students will be eligible for free or reduced lunch is based on their gross income calculated based on the frequency of payment from the income verification support provided. By incorrectly using net income, households were allowed to continue receiving free or reduced lunch instead of having to pay for lunches based on income guidelines. Recommendation: Procedures should be implemented requiring that all income should be verified using proper documentation and verification results review by at least two or more qualified individuals. Views of responsible officials: Management is in agreement and will implement a corrective action plan.

Finding 2023-001 –Verification Federal Programs: U.S. Department of Agriculture Child USDA Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Summer Food Service Program for Children CFDA No. 10.559 Fresh Fruits and Vegetables CFDA No. 10.582 Compliance requirement: 7 CFR section 245.6 states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. Condition: During our testing of verification of income of households sampled during the year, we tested all households chosen for verification. During this testing, we noted households whose net income was used to calculate their eligibility instead of their gross income. Cause: The employee verifying the income incorrectly used net income instead of gross income when calculating income for eligibility guidelines. Effect: The breakdown of internal controls in this area could adversely affect households by allowing them to receive free or reduced lunches that they are ineligible for. Questioned Costs: None Context: Households determination of whether their students will be eligible for free or reduced lunch is based on their gross income calculated based on the frequency of payment from the income verification support provided. By incorrectly using net income, households were allowed to continue receiving free or reduced lunch instead of having to pay for lunches based on income guidelines. Recommendation: Procedures should be implemented requiring that all income should be verified using proper documentation and verification results review by at least two or more qualified individuals. Views of responsible officials: Management is in agreement and will implement a corrective action plan.

Finding 2023-001 –Verification Federal Programs: U.S. Department of Agriculture Child USDA Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Summer Food Service Program for Children CFDA No. 10.559 Fresh Fruits and Vegetables CFDA No. 10.582 Compliance requirement: 7 CFR section 245.6 states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. Condition: During our testing of verification of income of households sampled during the year, we tested all households chosen for verification. During this testing, we noted households whose net income was used to calculate their eligibility instead of their gross income. Cause: The employee verifying the income incorrectly used net income instead of gross income when calculating income for eligibility guidelines. Effect: The breakdown of internal controls in this area could adversely affect households by allowing them to receive free or reduced lunches that they are ineligible for. Questioned Costs: None Context: Households determination of whether their students will be eligible for free or reduced lunch is based on their gross income calculated based on the frequency of payment from the income verification support provided. By incorrectly using net income, households were allowed to continue receiving free or reduced lunch instead of having to pay for lunches based on income guidelines. Recommendation: Procedures should be implemented requiring that all income should be verified using proper documentation and verification results review by at least two or more qualified individuals. Views of responsible officials: Management is in agreement and will implement a corrective action plan.