Audit 380979

Child Nutrition Cluster – Activities Allowed or Unallowed and Allowable Costs and Cost Principles and Reporting Criteria or specific requirement Reimbursement for meals served is determined by applying the applicable meals times rates formula, and supporting documentation should be properly saved. Any variances between supporting documents should be investigated and addressed, wherever possible. Condition During testing of the sponsor claim reimbursement reports, it was found that the District submitted inaccurate meal counts on two monthly reports. Context Auditor tested 2 months of meal reimbursement requests submitted to the State. For these months, 183 free lunches and 24 free breakfasts were not submitted for reimbursement, which could not be explained by any supporting documentation. Additionally, 24 paid breakfasts were submitted for reimbursement that could not be corroborated by any supporting documentation. These differences resulted in under reimbursement of $945. Cause Time sensitive reports from the District’s food service software were not saved during the preparation of the reporting. While some variances could be explained by other supporting documentation that was saved at that time, some variances remained. Due to the lack of supporting documentation, auditor was unable to determine whether there was a reasonable explanation for these variances or whether they were caused by human error. Effect Inaccurate meal counts were submitted to the State. Recommendation We recommend that the District review its controls related to monthly reimbursement requests for the Child Nutrition Cluster in order to ensure that accurate meal counts are submitted. Views of responsible officials and planned corrective actions See Corrective Action Plan.

Child Nutrition Cluster – Eligibility Criteria or specific requirement Per 7 CFR 245.6(c), eligibility for free or reduced price meals, as determined through an approved application or by direct certification, must remain in effect for the entire school year and for up to 30 operating days into the subsequent school year. When using a prior year’s application or completion of direct certification, that eligibility status may only be used for up to 30 operating days in the current school year, or until a new eligibility determination is made, whichever comes first. Condition During testing, auditor determined that 24 students had an incorrect eligibility status utilized for a portion of the school year. Context Staff in charge of the food service eligibility determinations did not realize that there were students still utilizing their prior year application or direct certification past the 30 day rollover period. They did not become aware of this until the end of the first semester, at which time, they sent letters to the households requesting that new applications be submitted. If a new application was not received, they were then switched to paid. Of the original sample that the auditor tested, 1 student was found to have utilized their prior year application for eligibility for the entire year. Auditor also analyzed the remaining student population and inquired about any students that had differing eligibility statuses at various points throughout the year. 23 of those students’ changes resulted from the error with the rollover period. Cause The issue was caused by turnover within the District and a lack of sufficient training. Effect Households received benefits that they were not eligible for. For the 24 students, meals were estimated to have been improperly reimbursed in the amount of $2,205. This amount was calculated based upon the number of free or reduced meals that they received, while also considering the reimbursement rate of the correct eligibility status that they were eventually moved to. Recommendation We recommend that the District look for training opportunities for food service staff members to ensure that they have a good understanding of the program’s compliance requirements. Additionally, all students receiving free or reduced price meal benefits should be reviewed to ensure that they have a valid application or direct certification on file. Views of responsible officials and planned corrective actions See Corrective Action Plan.

Education Stabilization Fund – Activities Allowed or Unallowed and Allowable Costs and Cost Principles Criteria or specific requirement Expenditures should only be incurred for the program if they have been deemed to meet program allowability requirements, which includes ensuring that no improper payments are made, that payroll charges are supported by required documentation, and that the cost was necessary and reasonable for the performance of the federal award. Condition 26 employees worked Summer School hours that were funded by Education Stabilization Fund monies, and while it was noted by staff that timesheets were prepared for these hours, they could not be located during audit procedures. Context Auditor tested four of the Summer School transactions that occurred during the year, and while all were found to have been paid at the correct hourly or daily rate, no support could be provided for the number of hours or days that were worked by the employees. Cause Due to turnover within the District, supporting documentation could not be located. Payments made to staff for Summer School wages were calculated based upon planned work hours and scheduled days, and it is unknown whether they were adjusted if the actual hours worked differed from those calculations due to the lacking documentation. Effect Sufficient supporting documentation could not be obtained for all transactions. Recommendation The District should carefully review all charges to the federal award in order to ensure that sufficient supporting documentation has been obtained, that correct payments are being made, and that no unreasonable or unnecessary charges exist. Views of responsible officials and planned corrective actions See Corrective Action Plan.