Audit 394343

Reference Number: 2025-004 No secondary review of meal claim reimbursements prior to submission Child Nutrition Cluster ALN’s: 10.553, 10.555, and 10.582 Pass through identifying number: NT4XL1YGLGC5 Award Year: 2024-2025 Federal Agency: U.S. Department of Agriculture Passed through State Department of Agriculture Criteria: 2 CFR §200.303 requires non-Federal entities to establish and maintain effective internal control over Federal awards that provides reasonable assurance that the entity is managing the award in compliance with Federal statutes, regulations, and the terms and conditions of the award. Program regulations for the Child Nutrition Cluster require reimbursement claims to be accurate and supported by appropriate documentation prior to submission. Effective internal controls over reporting include supervisory review of reimbursement claims to ensure accuracy and completeness before submission. Condition Found: During testing of reimbursement claims submitted under the Child Nutrition Cluster, we noted the School District did not perform a documented secondary review of monthly meal reimbursement claims prior to submission to the pass-through agency. Claims were prepared and submitted by the same individual without evidence of supervisory review or approval. Cause: Management indicated the control requiring a second review was informal and not consistently performed due to staffing limitations and turnover within the food service department. Additionally, the control was not formally documented in written procedures. Effect: Without a secondary review, there is an increased risk that reimbursement claims may contain errors, including inaccurate meal counts or calculation errors, which could result in over- or underreimbursement and potential noncompliance with Federal reporting requirements. Questioned Cost: $0. The District’s claims tested were mathematically accurate and supported, however, the control was not properly documented. Recommendation: We recommend the District implement and document a formal secondary review control over all Child Nutrition reimbursement claims prior to submission. Views of Responsible Officials: Management agrees with the findings. See corrective action plan