Audit 390981

SA-2025-02 – SIGNIFICANT DEFICIENCY FEDERAL AWARD PROGRAM: 10.553, 10.555, 10.559 Child Nutrition Cluster SPECIFIC REQUIREMENT: Federal reimbursement claims are required to be reviewed by a person other than the preparer. CONDITION: During testing of National School Lunch Program (NSLP) reimbursement claims, we noted that claims were submitted without evidence of review prior to submission. In addition, any reviews that may have occurred were not consistently documented. CRITERIA: NSLP reimbursement claims should be reviewed and approved by an individual independent of the preparer prior to submission, and the review should be documented. EFFECT: Without documented controls to ensure NSLP claims are reviewed prior to submission, there is an increased risk that claims may be submitted with errors or inconsistencies, which could impact compliance with federal program requirements. CAUSE: The finance office and food services department experienced turnover during the fiscal year under audit, which contributed to inconsistent review and documentation practices. RECOMMENDATION: We recommend the District assign an individual other than the claim preparer to review NSLP reimbursement claims prior to submission and maintain documentation of that review. VIEWS OF RESPONSIBLE OFFICIALS: The District acknowledges the importance of ensuring National School Lunch Program (NSLP) reimbursement claims are reviewed by an individual other than the preparer and that this review is properly documented. During the fiscal year ended June 30, 2025, staffing turnover and competing workload demands contributed to an inconsistency in the documented review process prior to claim submission. Management agrees with the recommendation and has already implemented corrective actions to strengthen oversight and documentation. The District has assigned an independent reviewer to review NSLP claims prior to submission and has implemented a standardized process to document the review and approval. In addition, the District will continue to reinforce written procedures and cross-training to support consistency and continuity. The District is committed to maintaining compliance with federal program requirements and ensuring these controls remain in place going forward.