Audit 370819

Finding 2025-001 – Reporting Federal Award & Specific Award Identification U.S. Department of Agriculture Passed through the New York State Department of Education Program Name: Child Nutrition Cluster Assistance Listing: 10.553, 10.555 & 10.582 MATERIAL WEAKNESS MATERIAL NONCOMPLIANCE Reporting Criteria The National School Lunch & Breakfast Program requires monthly claims be reported to New York State Child Nutrition Management System (CNMS). These claims are based on the number of meals served during the month and determine the monthly reimbursement to the District. Statement of Condition During the audit, we found that for one month of claims the District did not submit the proper amount of meals for reimbursement for breakfast and lunch. Cause Human error in the input of meals served into the CNMS system. Also, the District does not have any procedures in place to verify that the correct counts are input into CNMS prior to submission. Effect The District received additional federal reimbursement that was not substantiated by actual meals for the month. Questioned Costs $12,296. This amount was determined by taking the actual number of meals served for breakfast and multiplying by the reimbursement rate per meal. Context Of the 10 months of claims for the school lunch & breakfast program, we examined 3 and determined that one month’s breakfast and lunch claims were not submitted properly. There have been no previous instances of non-compliance. This is not a repeat finding. Recommendation We recommend that a secondary review of the manual inputs into the CNMS system is performed by another member of the District’s staff prior to submission to CNMS. View of Responsible Individuals The District acknowledges the error was made, which was the result of booking one month of breakfast reimbursement using the number of lunches served. Prior to the issuance of the financial statements, the District corrected the May breakfast and lunch claim and re-submitted for reimbursement to CNMS, and has implemented a procedure to verify that correct amounts are inputted into CNMS monthly, prior to submission.