Finding Text
2024-003
Federal Agency: U.S. Department of Agriculture
Federal Program Name: Child Nutrition Cluster
Assistance Listing Number: 10.553 and 10.555
Federal Award Identification Number and Year: Unknown
Pass-Through Agency: Michigan Department of Education
Pass-Through Number(s): 231970, 241970, 231960, and 241960
Award Period: July 1, 2023 through June 30, 2024
Type of Finding
Significant Deficiency in Internal Control over Financial Reporting
Criteria or Specific Requirement
2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The District should have internal controls designed to ensure compliance with those provisions.
Condition
The District did not perform review procedures over student statuses.
Questioned Costs: None
Context
While performing testing procedures, it was noted that 9 of the 40 student’s tested had an eligibility determination improperly recorded in the food service system.
Cause
While applications were being received and reviewed, the student’s lunch status was improperly recorded in the food service system.
Effect
Free and/or Reduced Meals could be served to students who do not qualify for those categories.
Repeat Finding: No
Recommendation
We recommend the District designate an individual to review student lunch statuses. Having an appropriate reviewer over student status is intended to prevent, detect, and correct a potential error in the food service system.
Views of Responsible Officials
There is no disagreement with the audit finding.