Finding 1081717 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-11-11
Audit: 327892
Organization: Birmingham Public Schools (MI)

AI Summary

  • Core Issue: The School District lacks proper documentation and controls for reviewing meal reimbursement claims, risking inaccurate reimbursements.
  • Impacted Requirements: Monthly claims must be submitted within 60 days and require controls to ensure accuracy as per federal regulations.
  • Recommended Follow-up: Implement a documented review process for reimbursement requests to verify accuracy against internal meal claims data.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 10.553 and 10.555, U.S. Department of Agriculture, Child Nutrition Cluster Federal Award Identification Number and Year - 231970, 241970, 231960, 241960, 220910, 230910, and 240910 Pass-through Entity - Michigan Department of Education Finding Type - Material weakness Repeat Finding - No Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement. Condition - For certain periods during the year the School District asserts there was a review process in place over the reimbursement requests; however, the review was not documented, and therefore we were not able to verify if the control was in place and operating effectively. For other periods during the year, the School District did not have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education. Cause and Effect - The absence of a secondary review comparing meal data from the School District's meal tracking point of sale system to the inputs into to MiND system means that if an error was made by the person submitting the claim, it would not be caught and the School District would be reimbursed an incorrect amount by the Michigan Department of Education. Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s internal meal claims data report. Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023-2024 fiscal year. Ultimately, the lack of a review control during the 2023-2024 fiscal year did not result in inaccurate reporting or incorrect amount of reimbursement paid by the Michigan Department of Education. The Business Office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.

Categories

Reporting School Nutrition Programs Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management Material Weakness

Other Findings in this Audit

  • 505267 2024-001
    Material Weakness
  • 505268 2024-001
    Material Weakness
  • 505269 2024-001
    Material Weakness
  • 505270 2024-001
    Material Weakness
  • 505271 2024-001
    Material Weakness
  • 505272 2024-001
    Material Weakness
  • 505273 2024-001
    Material Weakness
  • 505274 2024-001
    Material Weakness
  • 505275 2024-001
    Material Weakness
  • 1081709 2024-001
    Material Weakness
  • 1081710 2024-001
    Material Weakness
  • 1081711 2024-001
    Material Weakness
  • 1081712 2024-001
    Material Weakness
  • 1081713 2024-001
    Material Weakness
  • 1081714 2024-001
    Material Weakness
  • 1081715 2024-001
    Material Weakness
  • 1081716 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $2.07M
84.425 Covid-19 - Education Stabilization Fund $815,122
21.027 Coronavirus State and Local Fiscal Recovery Funds $223,775
10.555 National School Lunch Program - Cash Assistance $177,196
84.010 Title I Grants to Local Educational Agencies $146,363
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $121,513
10.553 School Breakfast Program $71,270
84.173 Special Education Preschool Grants $48,313
93.778 Medical Assistance Program $32,151
84.173 Covid-19 - Special Education Preschool Grants $29,868
84.365 English Language Acquisition State Grants $15,211
84.424 Student Support and Academic Enrichment Program $8,242
10.555 National School Lunch Program - Commodities $84