Audit 375994

Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Eligibility Criteria Any child enrolled in a participating school or summer camp, or attending a SFSP meal service site, who meets the applicable program’s definition of “child,” may receive meals under the applicable program. For the NSLP and SBP, children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price, set by the SFA, for their meals. Children participating in a SFSP meal service receive their meals at no charge (7 CFR sections 225.15(f), 245.1(a), and 245.3(c); definition of “subsidized lunch (paid lunch)” at 7 CFR section 210.2; and definitions of “camp,” “closed enrolled site,” “open site,” and “restricted open site” at 7 CFR section 225.2). Condition We noted during testing that one student received free meals when they qualified for reduced meals. We also noted one student that was listed as direct certified but was not listed on the MDE Direct Certification Report provided by the District. Questioned Costs None Context In a population over 250, 40 student applications were selected for testing. In this test we noted one student received free meals when they qualified for reduced meals. We also noted another student being listed as “direct certified” but was unable to locate this student on the supplied MDE “Electronic Certification Report for District 0593 – Crookston ISD #593 YTD School Year: 2024-2025” report. Cause Management oversight. Effect The District incorrectly determined eligibility for the program. Repeat Finding No Recommendation The District should implement policies and procedures to ensure students are receiving a reduced meal at the appropriate rate. Views of Responsible Officials and Planned Corrective Actions The District agrees with the recommendation and will implement policies and procedures to ensure students are receiving a reduced meal and the appropriate rate.

Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria A system of internal controls requires all reports to be independently reviewed and approved before they are submitted. This review includes comparing the information listed on the report to the supporting documentation to ensure accuracy. Condition During inquiry and testing, we noted the District does not have a formal policy to review the monthly reimbursement reports for accuracy before they are submitted. Questioned Costs None Context Our population included all months where the District served meals during FY25. We haphazardly selected three months to test the food counts of meals served for breakfast and lunch. During testing and inquiry, we noted the District does not have a formal review of the monthly reimbursement reports for accuracy before they are submitted. Cause Management oversight. Effect There is an increased risk of submitting an inaccurate monthly reimbursement report. Repeat Finding No Recommendation The District should implement policies and procedures to ensure all monthly reimbursement reports are reviewed and approved for accuracy before they are submitted. Views of Responsible Officials and Planned Corrective Actions The District agrees with the recommendation and will implement policies and procedures to ensure all monthly reimbursement reports are reviewed and approved before they are submitted.