FINDING 2023-001
Finding Subject: Child Nutrition Cluster - Special Tests and Provisions - Verification of
Free and Reduced Price Applications
Summary of Finding:
An effective internal control system, which would include segregation of duties, was not
in place at the School Corporation in order to e...
FINDING 2023-001
Finding Subject: Child Nutrition Cluster - Special Tests and Provisions - Verification of
Free and Reduced Price Applications
Summary of Finding:
An effective internal control system, which would include segregation of duties, was not
in place at the School Corporation in order to ensure compliance with requirements
related to the grant agreement and the Special Tests and Provisions - Verification of
Free and Reduced Price Applications compliance requirement.
Based upon the number of approved applications on file on October 1, the School
Corporation was required to select a sample of three applications for fiscal year 2022-
2023 that were approved for free and reduced price meals, to verify the applicants'
eligibility for the benefits received. The School Corporation requested income
documentation from each applicant to perform the verifications as required. The School
Corporation did not receive a response from any of the applicants. As a result, the
student included in each application should have had a change in status from free or
reduced to paid. However, for two of the applicants, the student was flagged in the
system as no response, but the students' statuses were not updated to reflect that each
was no longer eligible for free or reduced price meals.
Contact Person Responsible for Corrective Action: Lana M. Miller
Contact Phone Number and Email Address: Phone Number- 812-689-6282
Email- lmiller@sripley.k12.in.us
INDIANA STATE BOARD OF ACCOUNTS
28
Views of Responsible Officials: We concur with the finding.
Description of Corrective Action Plan:
This finding was a result of a new staff person in the position working with software
that was new to her. It was noted by the auditor that the application status was
changed to paid in the verification status. The staff person involved did not know
that she needed to make another change in the software other than changing the
application status. We have discussed with the person responsible for this regarding
the needed two-step process to change a student’s status. Additionally, the staff
person has set up a process for segregation of duties. A second person will be
reviewing the screens after verification changes are made. This person will also
sign off on the paper/report to show the second review and segregation of duties.
Anticipated Completion Date:
Immediately, February 2024