Audit 387137

Finding Number: 2025‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Numbers: 6AZ300400, 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria According to 7 CFR §210.8, the District shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. Condition The District did not have internal controls in place to ensure the number of meals reported for reimbursement agreed to supporting documentation. Cause The supporting documentation did not agree to the child nutrition claims submitted. Effect The District did not comply with reporting compliance requirements for Child Nutrition Cluster. This incorrect reporting resulted in a loss of funding for the District. Context For the three months reviewed:  On the January claim, the meal counts submitted for one school site between lunch and breakfast were erroneously swapped. This led to the January claim being understated by $7,568.  On the March claim, the meal counts for breakfast and lunch were erroneously swapped across multiple school sites. Additionally, total meals did not agree between the child nutrition claim and District support. This led to the January claim being understated by $19,004. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure adequate supporting documentation is maintained and the monthly meal reimbursements are reviewed by management before submission to the ADE. More care should be taken to ensure not only that meal counts agree to supporting documentation, but also that meal counts are reported in their proper category to ensure the proper reimbursements are received by the District. Views of Responsible Officials See Corrective Action Plan.