Audit 396079

Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Matter Child Nutrition Cluster, ALN’s 10.553 & 10.555 Federal Award Identification Number (FAIN) and Year: 2025; FAIN not available. Pass-through Agency: Massachusetts Department of Elementary and Secondary Education Pass-through Identifying Number: 09-207 Award Period: July 1, 2024 through June 30, 2025 Compliance Requirement: Reporting Criteria or Specific Requirement: School food authorities and sponsors must submit monthly claims for reimbursement of meals served to eligible students within sixty (60) days following the last day of the month covered by the claim in accordance with CFR Title 7, sections 210.8, 220.11, 215.10, and 225.15(c). Each month’s claim for reimbursement and all data used in the claims review process must be maintained on file, and failure to maintain such records may be grounds for denial of reimbursement for meals served during the period covered by the records in question. Condition and Context: For one (1) of thirty-seven (37) claims for reimbursement selected for testing, the meal count within the data used in the claims review process did not categorically agree with the corresponding meal count identified within the monthly claim for reimbursement submitted to the State. Questioned Costs: None above the reportable threshold. Cause: The standard internal controls implemented for the review and submission of monthly claims for reimbursement were not applicable for the discrepancy observed resulting in a categorical difference (2) between the meal count data compared to meals claimed for reimbursement from the State. Effect: Noncompliance with the federal program occurred as the City claimed a reimbursement which did not categorically align with the supporting meal count record. Repeat Finding: Yes, 2024-002 Recommendation: We recommend the review and approval process over monthly claims for reimbursement be strengthened to enhance the prevention of discrepancies between the claim for reimbursement and underlying data. Views of Responsible Officials: Management agrees with the finding.