Audit 337446

FY End
2024-06-30
Total Expended
$31.18M
Findings
18
Programs
17
Year: 2024 Accepted: 2025-01-13
Auditor: Scheffel Boyle

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
518982 2024-001 Significant Deficiency - N
518983 2024-002 Significant Deficiency - E
518984 2024-003 Significant Deficiency - E
518985 2024-002 Significant Deficiency - E
518986 2024-003 Significant Deficiency - E
518987 2024-002 Significant Deficiency - E
518988 2024-003 Significant Deficiency - E
518989 2024-002 Significant Deficiency - E
518990 2024-003 Significant Deficiency - E
1095424 2024-001 Significant Deficiency - N
1095425 2024-002 Significant Deficiency - E
1095426 2024-003 Significant Deficiency - E
1095427 2024-002 Significant Deficiency - E
1095428 2024-003 Significant Deficiency - E
1095429 2024-002 Significant Deficiency - E
1095430 2024-003 Significant Deficiency - E
1095431 2024-002 Significant Deficiency - E
1095432 2024-003 Significant Deficiency - E

Contacts

Name Title Type
PMC4V2ZJDSA6 Brandon Taylor Auditee
6185667414 Keith Brinkmann Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Mascoutah Community Unit School District #19 and is presented on the modified cash basis. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the Basic financial statements. De Minimis Rate Used: N Rate Explanation: Restricted indirect cost rate of 1.02%, unrestricted indirect cost rate of 13.20%. Of the federal expenditures presented in the schedule, Mascoutah Community Unit School District #19 provided federal awards to subrecipients as follows: None
Title: Non Cash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Mascoutah Community Unit School District #19 and is presented on the modified cash basis. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the Basic financial statements. De Minimis Rate Used: N Rate Explanation: Restricted indirect cost rate of 1.02%, unrestricted indirect cost rate of 13.20%. The following amounts were expended in the form of non-cash assistance by Mascoutah Community Unit School District #19 and should be included in the Schedule of Expenditures of Federal Awards: Non-Cash Commodities (AL 10.555) $151,057
Title: Other Information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Mascoutah Community Unit School District #19 and is presented on the modified cash basis. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the Basic financial statements. De Minimis Rate Used: N Rate Explanation: Restricted indirect cost rate of 1.02%, unrestricted indirect cost rate of 13.20%. Insurance coverage in effect paid with Federal funds during the fiscal year: No property, auto, general liability, workers compensation.
Title: Other Information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Mascoutah Community Unit School District #19 and is presented on the modified cash basis. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the Basic financial statements. De Minimis Rate Used: N Rate Explanation: Restricted indirect cost rate of 1.02%, unrestricted indirect cost rate of 13.20%. No loans or loan guarantees outstanding at June 30
Title: Other Information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Mascoutah Community Unit School District #19 and is presented on the modified cash basis. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the Basic financial statements. De Minimis Rate Used: N Rate Explanation: Restricted indirect cost rate of 1.02%, unrestricted indirect cost rate of 13.20%. The District did not have federal grants requiring matching expenditures

Finding Details

CRITERIA: Special Tests: Nonfederal entities have to follow the Wage Rate Requirements. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. CONDITION: The District did not receive the weekly certified pays for the construction project that was partially funded by Impact Aid construction funds. QUESTIONED COSTS: None CONTEXT: The District used the Impact Aid construction money to help fund the high school addition. No certified pays were given to the District during the fiscal year as this work was completed. EFFECT: The District was not able to confirm weekly that prevailing wages were being paid on this project. CAUSE: The District was not aware of this requirement. RECOMMENDATION: We recommend that school officials review the grant requirements for all of the federal grants that they receive. MANAGEMENT RESPONSE: Management will request weekly certified payroll and a statement of compliance from all contractors working on construction projects to ensure that prevailing wages are being paid on the project.
CRITERIA: Eligibility: Per the USDA Free and Reduced Price School Meals instructions, the household size number MUST be equal to the number of household members listed in Step 1 and Step 3 on the application. Also the free and reduced status must be determined using the Federal Registry income eligibility guidelines. CONDITION: There were 8 cases where the household size was larger than the number of household members listed in Step 1 and Step 3 on the application. In 3 cases there was no change in the free/reduced status if the smaller number of household members were used. In 5 cases there were changes in the status. There was an additional case where the listed income put the family in the reduced status but they were listed as free. QUESTIONED COSTS: There were 2 cases in the 5 mentioned above that were listed as free but based on the listed household members the status should have been reduced. If those applications were reduced instead, possible questioned costs for both lunch and breakfast were $730. The other 3 cases were listed as reduced but should have been full price based on the listed household members. Possible questioned costs for those 3 for lunch and breakfast was $5,250. In the additional case where based on income the correct status was reduced not free, the possible questioned costs were $851. Total $6,831. CONTEXT: 40 students were tested to confirm the free/reduced status. Found classification issues with 6 and 3 others that didn't have the correct household size with no classification issues. EFFECT: Using the household size number instead of the listed number of household members could result in students receiving more federal nutrition benefits than they should have. CAUSE: The District used the household size number rather than the listed household members. RECOMMENDATION: We recommend reviewing applications to ensure that the household size and the listed household members in Step 1 and Step 3 match. MANAGEMENT RESPONSE: The Food Service Department will implement a triple check process to ensure that all household data matches and the appropriate criteria is being used to calculate household eligibility.
CRITERIA: Eligibility: Either an application must be filled out correctly or Direct Certification completed to determine the eligibility of students for free or reduced price meals. CONDITION: The District could not find 8 free/reduced applications selected and one application selected was not signed as required. QUESTIONED COSTS: None CONTEXT: 40 students were tested for eligibility for free/reduced meals. Out of the 40 selected noted 1 that didn't have a signature and 8 applications that could not be found for testing. EFFECT: Could not complete the testing for the 8 applications that could not be found. Could not verify the authenticity of the application that was not signed. CAUSE: The applications were mostly done online for the year and then the District changed software and lost access to the applications. They worked with the former software company to get access to some of the digital applications but not all could be located. RECOMMENDATION:We recommend ensuring that no matter in which format the District collects the applications, that they have access to the data for any possible future audits. MANAGEMENT RESPONSE: Management and the Food Service Department will ensure that all records are appropriately saved in digital and paper formats in anticipation of future audits. The Food Service Department will implement a triple check process to ensure that all electronic and paper applications are signed.
CRITERIA: Eligibility: Per the USDA Free and Reduced Price School Meals instructions, the household size number MUST be equal to the number of household members listed in Step 1 and Step 3 on the application. Also the free and reduced status must be determined using the Federal Registry income eligibility guidelines. CONDITION: There were 8 cases where the household size was larger than the number of household members listed in Step 1 and Step 3 on the application. In 3 cases there was no change in the free/reduced status if the smaller number of household members were used. In 5 cases there were changes in the status. There was an additional case where the listed income put the family in the reduced status but they were listed as free. QUESTIONED COSTS: There were 2 cases in the 5 mentioned above that were listed as free but based on the listed household members the status should have been reduced. If those applications were reduced instead, possible questioned costs for both lunch and breakfast were $730. The other 3 cases were listed as reduced but should have been full price based on the listed household members. Possible questioned costs for those 3 for lunch and breakfast was $5,250. In the additional case where based on income the correct status was reduced not free, the possible questioned costs were $851. Total $6,831. CONTEXT: 40 students were tested to confirm the free/reduced status. Found classification issues with 6 and 3 others that didn't have the correct household size with no classification issues. EFFECT: Using the household size number instead of the listed number of household members could result in students receiving more federal nutrition benefits than they should have. CAUSE: The District used the household size number rather than the listed household members. RECOMMENDATION: We recommend reviewing applications to ensure that the household size and the listed household members in Step 1 and Step 3 match. MANAGEMENT RESPONSE: The Food Service Department will implement a triple check process to ensure that all household data matches and the appropriate criteria is being used to calculate household eligibility.
CRITERIA: Eligibility: Either an application must be filled out correctly or Direct Certification completed to determine the eligibility of students for free or reduced price meals. CONDITION: The District could not find 8 free/reduced applications selected and one application selected was not signed as required. QUESTIONED COSTS: None CONTEXT: 40 students were tested for eligibility for free/reduced meals. Out of the 40 selected noted 1 that didn't have a signature and 8 applications that could not be found for testing. EFFECT: Could not complete the testing for the 8 applications that could not be found. Could not verify the authenticity of the application that was not signed. CAUSE: The applications were mostly done online for the year and then the District changed software and lost access to the applications. They worked with the former software company to get access to some of the digital applications but not all could be located. RECOMMENDATION:We recommend ensuring that no matter in which format the District collects the applications, that they have access to the data for any possible future audits. MANAGEMENT RESPONSE: Management and the Food Service Department will ensure that all records are appropriately saved in digital and paper formats in anticipation of future audits. The Food Service Department will implement a triple check process to ensure that all electronic and paper applications are signed.
CRITERIA: Eligibility: Per the USDA Free and Reduced Price School Meals instructions, the household size number MUST be equal to the number of household members listed in Step 1 and Step 3 on the application. Also the free and reduced status must be determined using the Federal Registry income eligibility guidelines. CONDITION: There were 8 cases where the household size was larger than the number of household members listed in Step 1 and Step 3 on the application. In 3 cases there was no change in the free/reduced status if the smaller number of household members were used. In 5 cases there were changes in the status. There was an additional case where the listed income put the family in the reduced status but they were listed as free. QUESTIONED COSTS: There were 2 cases in the 5 mentioned above that were listed as free but based on the listed household members the status should have been reduced. If those applications were reduced instead, possible questioned costs for both lunch and breakfast were $730. The other 3 cases were listed as reduced but should have been full price based on the listed household members. Possible questioned costs for those 3 for lunch and breakfast was $5,250. In the additional case where based on income the correct status was reduced not free, the possible questioned costs were $851. Total $6,831. CONTEXT: 40 students were tested to confirm the free/reduced status. Found classification issues with 6 and 3 others that didn't have the correct household size with no classification issues. EFFECT: Using the household size number instead of the listed number of household members could result in students receiving more federal nutrition benefits than they should have. CAUSE: The District used the household size number rather than the listed household members. RECOMMENDATION: We recommend reviewing applications to ensure that the household size and the listed household members in Step 1 and Step 3 match. MANAGEMENT RESPONSE: The Food Service Department will implement a triple check process to ensure that all household data matches and the appropriate criteria is being used to calculate household eligibility.
CRITERIA: Eligibility: Either an application must be filled out correctly or Direct Certification completed to determine the eligibility of students for free or reduced price meals. CONDITION: The District could not find 8 free/reduced applications selected and one application selected was not signed as required. QUESTIONED COSTS: None CONTEXT: 40 students were tested for eligibility for free/reduced meals. Out of the 40 selected noted 1 that didn't have a signature and 8 applications that could not be found for testing. EFFECT: Could not complete the testing for the 8 applications that could not be found. Could not verify the authenticity of the application that was not signed. CAUSE: The applications were mostly done online for the year and then the District changed software and lost access to the applications. They worked with the former software company to get access to some of the digital applications but not all could be located. RECOMMENDATION:We recommend ensuring that no matter in which format the District collects the applications, that they have access to the data for any possible future audits. MANAGEMENT RESPONSE: Management and the Food Service Department will ensure that all records are appropriately saved in digital and paper formats in anticipation of future audits. The Food Service Department will implement a triple check process to ensure that all electronic and paper applications are signed.
CRITERIA: Eligibility: Per the USDA Free and Reduced Price School Meals instructions, the household size number MUST be equal to the number of household members listed in Step 1 and Step 3 on the application. Also the free and reduced status must be determined using the Federal Registry income eligibility guidelines. CONDITION: There were 8 cases where the household size was larger than the number of household members listed in Step 1 and Step 3 on the application. In 3 cases there was no change in the free/reduced status if the smaller number of household members were used. In 5 cases there were changes in the status. There was an additional case where the listed income put the family in the reduced status but they were listed as free. QUESTIONED COSTS: There were 2 cases in the 5 mentioned above that were listed as free but based on the listed household members the status should have been reduced. If those applications were reduced instead, possible questioned costs for both lunch and breakfast were $730. The other 3 cases were listed as reduced but should have been full price based on the listed household members. Possible questioned costs for those 3 for lunch and breakfast was $5,250. In the additional case where based on income the correct status was reduced not free, the possible questioned costs were $851. Total $6,831. CONTEXT: 40 students were tested to confirm the free/reduced status. Found classification issues with 6 and 3 others that didn't have the correct household size with no classification issues. EFFECT: Using the household size number instead of the listed number of household members could result in students receiving more federal nutrition benefits than they should have. CAUSE: The District used the household size number rather than the listed household members. RECOMMENDATION: We recommend reviewing applications to ensure that the household size and the listed household members in Step 1 and Step 3 match. MANAGEMENT RESPONSE: The Food Service Department will implement a triple check process to ensure that all household data matches and the appropriate criteria is being used to calculate household eligibility.
CRITERIA: Eligibility: Either an application must be filled out correctly or Direct Certification completed to determine the eligibility of students for free or reduced price meals. CONDITION: The District could not find 8 free/reduced applications selected and one application selected was not signed as required. QUESTIONED COSTS: None CONTEXT: 40 students were tested for eligibility for free/reduced meals. Out of the 40 selected noted 1 that didn't have a signature and 8 applications that could not be found for testing. EFFECT: Could not complete the testing for the 8 applications that could not be found. Could not verify the authenticity of the application that was not signed. CAUSE: The applications were mostly done online for the year and then the District changed software and lost access to the applications. They worked with the former software company to get access to some of the digital applications but not all could be located. RECOMMENDATION:We recommend ensuring that no matter in which format the District collects the applications, that they have access to the data for any possible future audits. MANAGEMENT RESPONSE: Management and the Food Service Department will ensure that all records are appropriately saved in digital and paper formats in anticipation of future audits. The Food Service Department will implement a triple check process to ensure that all electronic and paper applications are signed.
CRITERIA: Special Tests: Nonfederal entities have to follow the Wage Rate Requirements. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. CONDITION: The District did not receive the weekly certified pays for the construction project that was partially funded by Impact Aid construction funds. QUESTIONED COSTS: None CONTEXT: The District used the Impact Aid construction money to help fund the high school addition. No certified pays were given to the District during the fiscal year as this work was completed. EFFECT: The District was not able to confirm weekly that prevailing wages were being paid on this project. CAUSE: The District was not aware of this requirement. RECOMMENDATION: We recommend that school officials review the grant requirements for all of the federal grants that they receive. MANAGEMENT RESPONSE: Management will request weekly certified payroll and a statement of compliance from all contractors working on construction projects to ensure that prevailing wages are being paid on the project.
CRITERIA: Eligibility: Per the USDA Free and Reduced Price School Meals instructions, the household size number MUST be equal to the number of household members listed in Step 1 and Step 3 on the application. Also the free and reduced status must be determined using the Federal Registry income eligibility guidelines. CONDITION: There were 8 cases where the household size was larger than the number of household members listed in Step 1 and Step 3 on the application. In 3 cases there was no change in the free/reduced status if the smaller number of household members were used. In 5 cases there were changes in the status. There was an additional case where the listed income put the family in the reduced status but they were listed as free. QUESTIONED COSTS: There were 2 cases in the 5 mentioned above that were listed as free but based on the listed household members the status should have been reduced. If those applications were reduced instead, possible questioned costs for both lunch and breakfast were $730. The other 3 cases were listed as reduced but should have been full price based on the listed household members. Possible questioned costs for those 3 for lunch and breakfast was $5,250. In the additional case where based on income the correct status was reduced not free, the possible questioned costs were $851. Total $6,831. CONTEXT: 40 students were tested to confirm the free/reduced status. Found classification issues with 6 and 3 others that didn't have the correct household size with no classification issues. EFFECT: Using the household size number instead of the listed number of household members could result in students receiving more federal nutrition benefits than they should have. CAUSE: The District used the household size number rather than the listed household members. RECOMMENDATION: We recommend reviewing applications to ensure that the household size and the listed household members in Step 1 and Step 3 match. MANAGEMENT RESPONSE: The Food Service Department will implement a triple check process to ensure that all household data matches and the appropriate criteria is being used to calculate household eligibility.
CRITERIA: Eligibility: Either an application must be filled out correctly or Direct Certification completed to determine the eligibility of students for free or reduced price meals. CONDITION: The District could not find 8 free/reduced applications selected and one application selected was not signed as required. QUESTIONED COSTS: None CONTEXT: 40 students were tested for eligibility for free/reduced meals. Out of the 40 selected noted 1 that didn't have a signature and 8 applications that could not be found for testing. EFFECT: Could not complete the testing for the 8 applications that could not be found. Could not verify the authenticity of the application that was not signed. CAUSE: The applications were mostly done online for the year and then the District changed software and lost access to the applications. They worked with the former software company to get access to some of the digital applications but not all could be located. RECOMMENDATION:We recommend ensuring that no matter in which format the District collects the applications, that they have access to the data for any possible future audits. MANAGEMENT RESPONSE: Management and the Food Service Department will ensure that all records are appropriately saved in digital and paper formats in anticipation of future audits. The Food Service Department will implement a triple check process to ensure that all electronic and paper applications are signed.
CRITERIA: Eligibility: Per the USDA Free and Reduced Price School Meals instructions, the household size number MUST be equal to the number of household members listed in Step 1 and Step 3 on the application. Also the free and reduced status must be determined using the Federal Registry income eligibility guidelines. CONDITION: There were 8 cases where the household size was larger than the number of household members listed in Step 1 and Step 3 on the application. In 3 cases there was no change in the free/reduced status if the smaller number of household members were used. In 5 cases there were changes in the status. There was an additional case where the listed income put the family in the reduced status but they were listed as free. QUESTIONED COSTS: There were 2 cases in the 5 mentioned above that were listed as free but based on the listed household members the status should have been reduced. If those applications were reduced instead, possible questioned costs for both lunch and breakfast were $730. The other 3 cases were listed as reduced but should have been full price based on the listed household members. Possible questioned costs for those 3 for lunch and breakfast was $5,250. In the additional case where based on income the correct status was reduced not free, the possible questioned costs were $851. Total $6,831. CONTEXT: 40 students were tested to confirm the free/reduced status. Found classification issues with 6 and 3 others that didn't have the correct household size with no classification issues. EFFECT: Using the household size number instead of the listed number of household members could result in students receiving more federal nutrition benefits than they should have. CAUSE: The District used the household size number rather than the listed household members. RECOMMENDATION: We recommend reviewing applications to ensure that the household size and the listed household members in Step 1 and Step 3 match. MANAGEMENT RESPONSE: The Food Service Department will implement a triple check process to ensure that all household data matches and the appropriate criteria is being used to calculate household eligibility.
CRITERIA: Eligibility: Either an application must be filled out correctly or Direct Certification completed to determine the eligibility of students for free or reduced price meals. CONDITION: The District could not find 8 free/reduced applications selected and one application selected was not signed as required. QUESTIONED COSTS: None CONTEXT: 40 students were tested for eligibility for free/reduced meals. Out of the 40 selected noted 1 that didn't have a signature and 8 applications that could not be found for testing. EFFECT: Could not complete the testing for the 8 applications that could not be found. Could not verify the authenticity of the application that was not signed. CAUSE: The applications were mostly done online for the year and then the District changed software and lost access to the applications. They worked with the former software company to get access to some of the digital applications but not all could be located. RECOMMENDATION:We recommend ensuring that no matter in which format the District collects the applications, that they have access to the data for any possible future audits. MANAGEMENT RESPONSE: Management and the Food Service Department will ensure that all records are appropriately saved in digital and paper formats in anticipation of future audits. The Food Service Department will implement a triple check process to ensure that all electronic and paper applications are signed.
CRITERIA: Eligibility: Per the USDA Free and Reduced Price School Meals instructions, the household size number MUST be equal to the number of household members listed in Step 1 and Step 3 on the application. Also the free and reduced status must be determined using the Federal Registry income eligibility guidelines. CONDITION: There were 8 cases where the household size was larger than the number of household members listed in Step 1 and Step 3 on the application. In 3 cases there was no change in the free/reduced status if the smaller number of household members were used. In 5 cases there were changes in the status. There was an additional case where the listed income put the family in the reduced status but they were listed as free. QUESTIONED COSTS: There were 2 cases in the 5 mentioned above that were listed as free but based on the listed household members the status should have been reduced. If those applications were reduced instead, possible questioned costs for both lunch and breakfast were $730. The other 3 cases were listed as reduced but should have been full price based on the listed household members. Possible questioned costs for those 3 for lunch and breakfast was $5,250. In the additional case where based on income the correct status was reduced not free, the possible questioned costs were $851. Total $6,831. CONTEXT: 40 students were tested to confirm the free/reduced status. Found classification issues with 6 and 3 others that didn't have the correct household size with no classification issues. EFFECT: Using the household size number instead of the listed number of household members could result in students receiving more federal nutrition benefits than they should have. CAUSE: The District used the household size number rather than the listed household members. RECOMMENDATION: We recommend reviewing applications to ensure that the household size and the listed household members in Step 1 and Step 3 match. MANAGEMENT RESPONSE: The Food Service Department will implement a triple check process to ensure that all household data matches and the appropriate criteria is being used to calculate household eligibility.
CRITERIA: Eligibility: Either an application must be filled out correctly or Direct Certification completed to determine the eligibility of students for free or reduced price meals. CONDITION: The District could not find 8 free/reduced applications selected and one application selected was not signed as required. QUESTIONED COSTS: None CONTEXT: 40 students were tested for eligibility for free/reduced meals. Out of the 40 selected noted 1 that didn't have a signature and 8 applications that could not be found for testing. EFFECT: Could not complete the testing for the 8 applications that could not be found. Could not verify the authenticity of the application that was not signed. CAUSE: The applications were mostly done online for the year and then the District changed software and lost access to the applications. They worked with the former software company to get access to some of the digital applications but not all could be located. RECOMMENDATION:We recommend ensuring that no matter in which format the District collects the applications, that they have access to the data for any possible future audits. MANAGEMENT RESPONSE: Management and the Food Service Department will ensure that all records are appropriately saved in digital and paper formats in anticipation of future audits. The Food Service Department will implement a triple check process to ensure that all electronic and paper applications are signed.
CRITERIA: Eligibility: Per the USDA Free and Reduced Price School Meals instructions, the household size number MUST be equal to the number of household members listed in Step 1 and Step 3 on the application. Also the free and reduced status must be determined using the Federal Registry income eligibility guidelines. CONDITION: There were 8 cases where the household size was larger than the number of household members listed in Step 1 and Step 3 on the application. In 3 cases there was no change in the free/reduced status if the smaller number of household members were used. In 5 cases there were changes in the status. There was an additional case where the listed income put the family in the reduced status but they were listed as free. QUESTIONED COSTS: There were 2 cases in the 5 mentioned above that were listed as free but based on the listed household members the status should have been reduced. If those applications were reduced instead, possible questioned costs for both lunch and breakfast were $730. The other 3 cases were listed as reduced but should have been full price based on the listed household members. Possible questioned costs for those 3 for lunch and breakfast was $5,250. In the additional case where based on income the correct status was reduced not free, the possible questioned costs were $851. Total $6,831. CONTEXT: 40 students were tested to confirm the free/reduced status. Found classification issues with 6 and 3 others that didn't have the correct household size with no classification issues. EFFECT: Using the household size number instead of the listed number of household members could result in students receiving more federal nutrition benefits than they should have. CAUSE: The District used the household size number rather than the listed household members. RECOMMENDATION: We recommend reviewing applications to ensure that the household size and the listed household members in Step 1 and Step 3 match. MANAGEMENT RESPONSE: The Food Service Department will implement a triple check process to ensure that all household data matches and the appropriate criteria is being used to calculate household eligibility.
CRITERIA: Eligibility: Either an application must be filled out correctly or Direct Certification completed to determine the eligibility of students for free or reduced price meals. CONDITION: The District could not find 8 free/reduced applications selected and one application selected was not signed as required. QUESTIONED COSTS: None CONTEXT: 40 students were tested for eligibility for free/reduced meals. Out of the 40 selected noted 1 that didn't have a signature and 8 applications that could not be found for testing. EFFECT: Could not complete the testing for the 8 applications that could not be found. Could not verify the authenticity of the application that was not signed. CAUSE: The applications were mostly done online for the year and then the District changed software and lost access to the applications. They worked with the former software company to get access to some of the digital applications but not all could be located. RECOMMENDATION:We recommend ensuring that no matter in which format the District collects the applications, that they have access to the data for any possible future audits. MANAGEMENT RESPONSE: Management and the Food Service Department will ensure that all records are appropriately saved in digital and paper formats in anticipation of future audits. The Food Service Department will implement a triple check process to ensure that all electronic and paper applications are signed.