Finding Text
2023-001 Improve Controls Over Special Tests and Provisions Related to Verification
Federal Agency: U.S. Department of Agriculture
Cluster/Program: Child Nutrition Cluster
Award Name: National School Lunch Program
AL Number(s): 10.553/10.555
Award Year: 2023
Compliance Requirement: Special Tests and Provisions
Type of Finding
Compliance
Internal Control over Compliance - Material Weakness
Criteria or Specific Requirement
By November 15 of each school year, the local education agency (LEA) must verify the current
free and reduced-price eligibility of households selected from a sample of applications that it has
approved for free and reduced-price meals, unless the LEA is otherwise exempt from the verification
requirement. The verification sample size is based on the total number of approved applications
on file on October 1st.
Management is also responsible for establishing and maintaining effective internal control over
compliance with federal requirements that have a direct and material effect on a federal program.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis.
Condition and Context
The Town failed to complete the required verification process for the 2023 school year.
Cause
A lack of understanding of the verification requirements and insufficient oversight by the program
management. Effect or Potential Effect
The failure to complete the required verification process could result in ineligible participants receiving
benefits, thereby potentially affecting the integrity of the National School Lunch Program and leading
to the misuse of federal funds. No questioned costs were reported as it is not quantifiable.
Recommendation
The Town should establish and enforce policies and procedures to ensure that the annual
verification process is completed in accordance with USDA requirements. This should include
appropriate training for responsible personnel and regular monitoring to ensure compliance.
Views of Responsible Official
Management agrees with the finding.
Planned Corrective Action
Management’s corrective action plan is included at the end of this report after the Schedule of Prior
Year Findings.