FAC Explorer

Audit 336985

FY End
2024-06-30
Total Expended
$1.94M
Findings
28
Programs
12
Organization: Ojai Unified School District (CA)
Year: 2024 Accepted: 2025-01-09
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
518516 2024-002 Material Weakness Yes L
518517 2024-002 Material Weakness Yes L
518518 2024-002 Material Weakness Yes L
518519 2024-002 Material Weakness Yes L
518520 2024-002 Material Weakness Yes L
518521 2024-002 Material Weakness Yes L
518522 2024-002 Material Weakness Yes L
518523 2024-003 Material Weakness - E
518524 2024-003 Material Weakness - E
518525 2024-003 Material Weakness - E
518526 2024-003 Material Weakness - E
518527 2024-003 Material Weakness - E
518528 2024-003 Material Weakness - E
518529 2024-003 Material Weakness - E
1094958 2024-002 Material Weakness Yes L
1094959 2024-002 Material Weakness Yes L
1094960 2024-002 Material Weakness Yes L
1094961 2024-002 Material Weakness Yes L
1094962 2024-002 Material Weakness Yes L
1094963 2024-002 Material Weakness Yes L
1094964 2024-002 Material Weakness Yes L
1094965 2024-003 Material Weakness - E
1094966 2024-003 Material Weakness - E
1094967 2024-003 Material Weakness - E
1094968 2024-003 Material Weakness - E
1094969 2024-003 Material Weakness - E
1094970 2024-003 Material Weakness - E
1094971 2024-003 Material Weakness - E

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $423,996 - 0
10.553 School Breakfast Program $228,137 Yes 2
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $77,501 - 0
84.424 Student Support and Academic Enrichment Program $33,410 - 0
84.027 Special Education Grants to States $26,010 Yes 0
84.365 English Language Acquisition State Grants $22,131 - 0
10.555 National School Lunch Program $12,190 Yes 2
84.425 Education Stabilization Fund $10,503 - 0
10.558 Child and Adult Care Food Program $7,843 - 0
84.173 Special Education Preschool Grants $6,367 Yes 0
10.665 Schools and Roads - Grants to States $6,092 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0

Contacts

Name Title Type
VJPTBRGURVN4 Ryan Worsham Auditee
8056404300 Bobby Patel Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the ten percent de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the Ojai Unified School District (the District) under programs of the federal government for the year ended June 30, 2024. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or fund balance of the District.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the ten percent de minimis cost rate. Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the ten percent de minimis cost rate. The District has not elected to use the ten percent de minimis cost rate.
Title: Food Donation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the ten percent de minimis cost rate. Nonmonetary assistance is reported in this schedule at the fair market value of the commodities received and disbursed. At June 30, 2024, the District did not report any commodities in inventory.

Finding Details

Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-002
50000 – Reporting Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. There is no indication that a second person reviews data submissions. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. The system reports provided to the auditor for the six months selected for testing did not agree to the meal counts reported on the Claims for Reimbursement. Discrepancies included the misclassification of 2,054 breakfast meals as severe need rather than basic in each month tested and a misstatement of the number of 163 lunch meals served. The misclassification of breakfast meals resulted in excess revenue of $418. The misstatement of the number of lunch meals served resulted in understated revenue of $867. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 3 months out of 12 months were selected for reporting testing, with an additional 3 months selected to include an element of unpredictability. Repeat Finding Yes, see prior-year finding 2023-003. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.
Finding 2024-003
50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) 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. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.