Audit 348468

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 4401 Criteria or specific requirement: The U.S. Department of Agriculture Eligibility Manual for School Meals states that applications must be properly completed to determine eligibility for free or reduced priced meals. Condition: An Administrative Review for the Huntsville School District (District) was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in December 2023 noting the following: • Six applications were determined free meal status but did not contain all required information. • Twenty-seven applications were completed by District principals on behalf of households that failed to apply. These applications did not include required income or household size source information but were approved for free meal benefits. The errors resulted in an over claim totaling $13,694, and the District was instructed to reimburse DESE,CNU. Cause: Applicable personnel did not obtain proper training and the District did not provide proper management oversight to ensure compliance with applicable regulations. Effect: The District was not properly reimbursed for meals served. Questioned costs: Total questioned costs of $13,694 (AL #10.553 Breakfast $3,457 and AL #10.555 Lunch $10,237). Context: Administrative Review conducted by DESE, CNU of 359 student eligibility source documents. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure free/reduced price meal applications are properly completed and classified. Views of responsible officials: The Huntsville School District has developed guidelines that have been approved by our School Board for reconsidering or approving meal applications based on extenuating circumstances. The administrators have been trained and the guidelines are readily available. The district has also reimbursed DESE, CNU in the amount of $13,694 dated 3/5/2024.

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 4401 Criteria or specific requirement: The U.S. Department of Agriculture Eligibility Manual for School Meals states that applications must be properly completed to determine eligibility for free or reduced priced meals. Condition: An Administrative Review for the Huntsville School District (District) was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in December 2023 noting the following: • Six applications were determined free meal status but did not contain all required information. • Twenty-seven applications were completed by District principals on behalf of households that failed to apply. These applications did not include required income or household size source information but were approved for free meal benefits. The errors resulted in an over claim totaling $13,694, and the District was instructed to reimburse DESE,CNU. Cause: Applicable personnel did not obtain proper training and the District did not provide proper management oversight to ensure compliance with applicable regulations. Effect: The District was not properly reimbursed for meals served. Questioned costs: Total questioned costs of $13,694 (AL #10.553 Breakfast $3,457 and AL #10.555 Lunch $10,237). Context: Administrative Review conducted by DESE, CNU of 359 student eligibility source documents. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure free/reduced price meal applications are properly completed and classified. Views of responsible officials: The Huntsville School District has developed guidelines that have been approved by our School Board for reconsidering or approving meal applications based on extenuating circumstances. The administrators have been trained and the guidelines are readily available. The district has also reimbursed DESE, CNU in the amount of $13,694 dated 3/5/2024.

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 4401 Criteria or specific requirement: The U.S. Department of Agriculture Eligibility Manual for School Meals states that applications must be properly completed to determine eligibility for free or reduced priced meals. Condition: An Administrative Review for the Huntsville School District (District) was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in December 2023 noting the following: • Six applications were determined free meal status but did not contain all required information. • Twenty-seven applications were completed by District principals on behalf of households that failed to apply. These applications did not include required income or household size source information but were approved for free meal benefits. The errors resulted in an over claim totaling $13,694, and the District was instructed to reimburse DESE,CNU. Cause: Applicable personnel did not obtain proper training and the District did not provide proper management oversight to ensure compliance with applicable regulations. Effect: The District was not properly reimbursed for meals served. Questioned costs: Total questioned costs of $13,694 (AL #10.553 Breakfast $3,457 and AL #10.555 Lunch $10,237). Context: Administrative Review conducted by DESE, CNU of 359 student eligibility source documents. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure free/reduced price meal applications are properly completed and classified. Views of responsible officials: The Huntsville School District has developed guidelines that have been approved by our School Board for reconsidering or approving meal applications based on extenuating circumstances. The administrators have been trained and the guidelines are readily available. The district has also reimbursed DESE, CNU in the amount of $13,694 dated 3/5/2024.

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 4401 Criteria or specific requirement: The U.S. Department of Agriculture Eligibility Manual for School Meals states that applications must be properly completed to determine eligibility for free or reduced priced meals. Condition: An Administrative Review for the Huntsville School District (District) was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in December 2023 noting the following: • Six applications were determined free meal status but did not contain all required information. • Twenty-seven applications were completed by District principals on behalf of households that failed to apply. These applications did not include required income or household size source information but were approved for free meal benefits. The errors resulted in an over claim totaling $13,694, and the District was instructed to reimburse DESE,CNU. Cause: Applicable personnel did not obtain proper training and the District did not provide proper management oversight to ensure compliance with applicable regulations. Effect: The District was not properly reimbursed for meals served. Questioned costs: Total questioned costs of $13,694 (AL #10.553 Breakfast $3,457 and AL #10.555 Lunch $10,237). Context: Administrative Review conducted by DESE, CNU of 359 student eligibility source documents. Identification as a repeat finding: No Recommendation: The District should implement procedures to ensure free/reduced price meal applications are properly completed and classified. Views of responsible officials: The Huntsville School District has developed guidelines that have been approved by our School Board for reconsidering or approving meal applications based on extenuating circumstances. The administrators have been trained and the guidelines are readily available. The district has also reimbursed DESE, CNU in the amount of $13,694 dated 3/5/2024.