Audit 386088

Federal Program & Assistance Listing Number: Child Nutrition Cluster- ALN: 10.553, 10.555, Criteria: Federal regulations require that elgibility determinations for free and reduced-price meals be accurate and that benefit issuance documents are update timely and accurately (7 CFR 245.6, 245.10). Condition: Several student applications were incorrectly approved. Additionally, benefit issuance documents were not updated in a timely manner for student newly eligible through Direct Certification. Household notification of denied benefits were not approved within 10 operating days as required. Cause: Inadequate training and oversight of staff responsible for application processing and benefit issurance. Effect: Students have received incorrect meal benefits, and households were not properly notified of denials, resulting in noncompliance with federal requirements. Questioned Costs: None identified. Recommendation: Provide additional training toi staff on application processing and benefit issurance requirements. Views of Responsible Officials: The Child Nutrition Secretary will attend Certification and Benefit issuance training and procedures will be updated to ensure compliance. The direct will double-check questionable applications and review Direct Certification lists.

Federal Program & Assistance Listing Number: Child Nutrition Cluster- ALN: 10.553, 10.555, Criteria: Federal regulations require that verification of applications be consudcted by separate officails and that proper docuemntation and procedures are followed (7 CFR 245.6a). Condition: The same individual served as both the confirming and determinig/reviewing official. The District did not maintain documentation of confirmation reviews, and some applications were not verified correctly, resulting in incorrect eligibility determinations. Cause: Lack of segregation of dutes and insufficient understanding of verificaiton requirements. Effect: Increased risk of erros in eligibility determinations and noncompliance with federal verification requirements. Questioned Costs: None identified. Recommendation: Assign separate individuals to roles of confirming and determining/reviewing official. The District should maintain documentation of confirmation reviews and applications verified. Views of Responsible Officials: The District will complete the Technology- Based Confirmation Waiver, assign separate staff to verification and confirmation, and ensure training is completed.

Federal Program and Assistance Listing Number: Child Nutrition Cluster-ALN: 10.553, 10.555. Criteria: Federal regulations require full and open competition in procurement, equitable distribution of micro-purchase, cost/price analysis for formal contracts, and proper contract management (2 CFR 200.318-.326). Condition: Micro-purchases were not equitably distributed, cost/price analyes were not conducted prior to formal contracts, and full and open competition was restricted by unreasonable requirements. Sealed bids were not properly opened or evaluated, and contract management was insufficient. Cause: Lack of understanding of federal procurement requirements and insufficient internal controls over procurement process. Effect: Increased risk of favoritism, unallowable costs, and noncompliance with federal procurement standards. Questioned Costs: None identified. Recommendation: Provide training on federal procurement requirements, implement procedures for equitable distributions and cost/price analysis, and strengthn contract management controls. Views of Responsible Officials: The District will provide training on procurement and micro-purchases.