Audit 379508

2025-001 Ineligible Student Approved for Food and Nutrition Program US Department of Agriculture – Child Nutrition Cluster Condition: During our review of 40 student applications for the 2024-2025 school year, we identified one instance in which a student was approved for free lunch benefits despite being income-ineligible based on the documentation provided. Criteria: According to 7 CFR § 245.6(a), schools participating in the National School Lunch Program and School Breakfast Program must determine student eligibility for free or reduced-price meals based on current household income and family size, or through direct certification. All applications must be accurately reviewed and approved based on required documentation and eligibility criteria. Cause: During our review of eligibility determinations for the 2024-2025 school year, it was found that one student was approved for free meal benefit despite not meeting the income eligibility guidelines or qualifying under any categorical eligibility (e.g., SNAP, or Medicare). The household application for this student reported income that exceeded the USDA-established thresholds for free or reduced-price meals. The error appears to have resulted in miscalculation of household income on the application and a lack of secondary review or quality control procedures for determining eligibility. Effect: The student received meal benefits for which they were not eligible, resulting in improper federal reimbursement claims submitted by the school. Recommendation: We recommend that the Food and Nutrition Program Office implement stronger internal controls to ensure proper eligibility determination. This includes staff training on income calculations, implementing a secondary review of applications, and conducting periodic internal audits. Management Response: There is no disagreement with the audit finding.