FINDING 2023-002 (Auditor Assigned Reference Number)
Finding Subject: Child Nutrition Cluster - Eligibility
Summary of Finding:
The School Corporation had not properly designed or implemented a system of internal control, which, would
include appropriate segregation of duties, that would likely be e...
FINDING 2023-002 (Auditor Assigned Reference Number)
Finding Subject: Child Nutrition Cluster - Eligibility
Summary of Finding:
The School Corporation had not properly designed or implemented a system of internal control, which, would
include appropriate segregation of duties, that would likely be effective in preventing, or detecting and
correcting noncompliance related to the eligibility determination of a child receiving meals.
Any child enrolled in a participating school or summer camp, who meets the applicable program’s definition of
“child”, may receive meals under applicable programs. A child belonging to households meeting nationwide
income eligibility requirements may receive meals at no charge or at a reduced price. Children that have been
determined ineligible for free or reduced-price meals pay the fun price for their meals. A child’s eligibility for
free and reduced-priced meals under a Child Nutrition Cluster program may be established by the submission
of an annual application or statement which furnished such information as family income and family size. The
School Corporation determines eligibility by comparing the data reported by the child’s household to published
income eligibility guidelines. Annual eligibility determinations may also be based on the child’s household
receiving benefits under SNAP, FDPIR, the Head Start Program, or, under most circumstances, the TANF
program. A household may furnish documentation if its participation in one of those programs, or the School
Corporation may obtaine the information directly from the State or local agency that administers those
programs. Certain foster, runaway, homeless, and migrant children are categorically eligible for free school
lunches and breakfasts. Direct Certified households do not need to complete an application.
The School Corporation’s child nutrition program software company, Skyward, automatically imported the
eligibility parameters into the system., There was no evidence of an oversight, review, or approval process to
ensure that the eligibility parameters entered into the Skyward system were accurate and that eligibility
statuses were being correctly determined.
A Sample of students receiving free or reduced lunches as selected for testing. The following issues were
noted with the first students tested:
1.) Six of the 14 students were determined to be processed at the incorrect eligibility. Errors noted
were:
a. Three students had an eligibility determination of free; however, their eligibility
determination should have been reduced.
b. One student had an eligibility determination of reduced; however, the eligibility
determination should have been paid.
c. Two students were determined to be reduced; however, their eligibility determination
should have been free.
2.) One of the 14 students did not have a completed application on file; thus, a determination of
eligibility could not be made.
3.) Two students were direct certified; however, the School Corporation did not retain the monthly
direct certification reports ran to support this determination, nor could the reports be recreated.
Due to the number and magnitude of exceptions, per auditor judgement, we concluded it would not be
appropriate to examine the remaining 26 students.
The lack of internal controls and noncompliance were isolated to the 2022-2023 school year.
We recommended that the School Corporation's management establish a proper system of internal controls
and develop policies and procedures to ensure student eligibility for free or reduced price lunches is accurately
determined and that all documentation is retained. Contact Person Responsible for Corrective Action:
Contact Phone Number and Email Address: Stefanie Grandstaff, Director of Business Services
stefanie.grandstaff@epulaski.k12.in.us
Views of Responsible Officials:
We concur with the finding
.
Description of Corrective Action Plan:
The Food Service Director has been in contact with Skyward to find which reports can help with the Eligibility
compliance requirements. The corporation has found a few more reports that can be of assistance with this finding.
The Director of Business Services has also reached out to other Skyward users who use the food service module to
ask for suggestions on what reports should be pulled and how to locate supporting documentation of students that
received free or reduced-priced meals. At the end of each year when the corporation completes the roll-over
process, all the reports are saved to a Google Drive folder. The Direct Certified Reports will be kept upon processing
for future use and documentation purposes. An additional review of the applications will be performed to verify that
the system is calculating properly. The Food Service Director and Director of Business Services are going to
continue to reach out to other Skyward food service users and ask if any other reports should be saved, printed or
kept for future audits.
Anticipated Completion Date:
Projected completion date of major tasks for the planned corrective actions is June 30, 2024