Audit 398746

Repeat Finding? No Criteria: Code of Federal Regulations, 7 CFR sections 210.8, 220.11, 2015.10 and 225.15(c), require that monthly claims for reimbursement for meals and snacks served to eligible students be submitted within 60 days following the last day of the month covered by the claim. In conjunction each month’s claim for reimbursement and all data used in the claims review process must be maintained on file. Condition: During our audit, we haphazardly selected the October 2024 and December 2024 CNIPS claims for reconciliation to supporting documentation. We identified overreported breakfast counts in both months. The October 2024 claim was overstated by 24 breakfasts, resulting in excess reimbursement of $91.66. The December 2024 claim was overstated by 9 breakfasts, resulting in excess reimbursement of $34.37 Context: This deficiency was noted in both of the two months tested. Questioned Costs: October 2024 CNIPS claim resulted in excess reimbursement of $91.66 and December 2024 CNIPS claim resulted in excess reimbursement of $34.37. Cause: The District relied on meal preparation tracking counts rather than the actual number of meals served to pupils in attendance. Effect: This resulted in the District being over-reimbursed by $126.03. Recommendation: The District should implement a reconciliation process comparing meal preparation tracking forms to the Saturday School attendance forms. Any variances should be investigated, and meals not actually served to pupils should be excluded from the CNIPS claim. Views of Responsible Officials: Keppel Union School District Cafeteria site managers are now required to review their production records prior to entering data into the point-of-sale (POS) system. This ensures that all quantities and meal counts are accurate. Additionally, managers must verify that children with allergies are properly identified and accurately accounted for in both production.