Finding 1094969 (2024-003)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-01-09
Audit: 336985
Organization: Ojai Unified School District (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District lacks controls to ensure accurate eligibility for free or reduced-price meals, leading to misclassification of students.
  • Impacted Requirements: Noncompliance with Title 7 regulations regarding income verification and documentation retention for eligibility determinations.
  • Recommended Follow-Up: Review and implement necessary procedures to address control deficiencies and ensure all documentation is retained for at least three years.

Finding Text

50000 – Eligibility Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: E (Eligibility) Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(c) (4) states that the local educational agency must use the income information provided by the household on the application to calculate the household's total current income. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable. Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6(e) states that the local educational agency must maintain documentation substantiating eligibility determinations on file for 3 years after the date of the fiscal year to which they pertain, except that if audit findings have not been resolved, the documentation must be maintained as long as required for resolution of the issues raised by the audit. Condition The District did not have sufficient controls in place to ensure that students were accurately included as eligible to receive free or reduced-price meals. There was no evidence that meal applications had been reviewed by the Director of Nutrition Services. Of 40 students selected for testing, six had been determined to be eligible for reduced-price meals while the audit determined that they were eligible for free meals. No application could be located for one student. Cause The condition identified appears to have materialized due to the District’s lack of established internal control procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e). Questioned Costs There were no questioned costs associated with the identified condition. Context/Sampling The condition was identified through inquiry with District personnel and through review of available supporting documentation for the student eligibility for free or reduced-price meals. A nonstatistical sample of 40 out of 847 students were selected for eligibility testing. Repeat Finding No. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Part 245.6 (c) and Part 245.6 (e) and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the eligibility determination for a minimum of three years as required by the Code.

Categories

School Nutrition Programs Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility Material Weakness

Other Findings in this Audit

  • 518516 2024-002
    Material Weakness Repeat
  • 518517 2024-002
    Material Weakness Repeat
  • 518518 2024-002
    Material Weakness Repeat
  • 518519 2024-002
    Material Weakness Repeat
  • 518520 2024-002
    Material Weakness Repeat
  • 518521 2024-002
    Material Weakness Repeat
  • 518522 2024-002
    Material Weakness Repeat
  • 518523 2024-003
    Material Weakness
  • 518524 2024-003
    Material Weakness
  • 518525 2024-003
    Material Weakness
  • 518526 2024-003
    Material Weakness
  • 518527 2024-003
    Material Weakness
  • 518528 2024-003
    Material Weakness
  • 518529 2024-003
    Material Weakness
  • 1094958 2024-002
    Material Weakness Repeat
  • 1094959 2024-002
    Material Weakness Repeat
  • 1094960 2024-002
    Material Weakness Repeat
  • 1094961 2024-002
    Material Weakness Repeat
  • 1094962 2024-002
    Material Weakness Repeat
  • 1094963 2024-002
    Material Weakness Repeat
  • 1094964 2024-002
    Material Weakness Repeat
  • 1094965 2024-003
    Material Weakness
  • 1094966 2024-003
    Material Weakness
  • 1094967 2024-003
    Material Weakness
  • 1094968 2024-003
    Material Weakness
  • 1094970 2024-003
    Material Weakness
  • 1094971 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $423,996
10.553 School Breakfast Program $228,137
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $77,501
84.424 Student Support and Academic Enrichment Program $33,410
84.027 Special Education Grants to States $26,010
84.365 English Language Acquisition State Grants $22,131
10.555 National School Lunch Program $12,190
84.425 Education Stabilization Fund $10,503
10.558 Child and Adult Care Food Program $7,843
84.173 Special Education Preschool Grants $6,367
10.665 Schools and Roads - Grants to States $6,092
10.649 Pandemic Ebt Administrative Costs $3,063