Audit 379671

2025-001: School Nutrition Fund had deficiencies in claim reimbursement process – Material Weakness and Noncompliance under Government Auditing Standards and Uniform Guidance Criteria: The U.S. Department of Agriculture has established policies and procedures for determining eligibility requirements of children, (i.e., free, reduced and full pay), which includes the establishment of adequate internal controls for accumulating and reporting such data. Further, reimbursements for meals served is based upon Food Service data and monthly reporting of claims for reimbursement. Condition: During preliminary audit procedures in May 2025, we noted possible errors in data, including participant counts, and monthly claims submitted for reimbursement. School system personnel began efforts to amend and correct student count data and monthly claims that had been submitted. Amended claims were submitted to the state. The total of the amended claims was $167,498. Context: The School system’s monthly claims for the months of August through May were incorrect and as a result, $167,498 had been overclaimed by the School system. Cause: The original student count data was incorrect and thus claims for reimbursement were overstated. Effect: The School system was not compliant with student data counts or claims submitted for reimbursement. As a result, $167,498 had been overclaimed by the School system and these costs are questioned. Amended claims were filed with the appropriate state agency and proper accounting adjustments were made by School system personnel to correct this error in the June 30, 2025 financial statements. Recommendation: We recommend proper procedures including review of student count data and monthly claims be a part of the normal monthly accounting process. Response: The student numbers were corrected and the USDA claims were adjusted before the end of the fiscal year. The School Nutrition Coordinator has been instructed to ensure that all students are counted correctly.