Finding 1097071 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-01-29

AI Summary

  • Core Issue: Inaccurate meal counts reported due to insufficient internal controls, affecting all three months tested.
  • Impacted Requirements: Non-compliance with 7 CFR § 210.8(a) and § 220.11(b), risking future funding for the meal program.
  • Recommended Follow-Up: Implement control policies for meal count verification, including independent reviews and documentation of discrepancies.

Finding Text

7 CFR § 210.8(a) states, "The school food authority shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. At a minimum, these internal controls shall include: an on-site review of the meal counting and claiming system employed by each school within the jurisdiction of the school food authority; comparisons of daily free, reduced price and paid meal counts against data which will assist in the identification of meal counts in excess of the number of free, reduced price and paid meals served each day to children eligible for such meals; and a system for following up on those meal counts which suggest the likelihood of meal counting problems." 7 CFR § 220.11(b) states in part, claims for reimbursement shall include data in sufficient detail to justify the reimbursement claimed and to enable the State Agency to provide the Reports of School Program Operations required under § 220.13(b)(2). In Ohio, the Ohio Department of Education and Workforce (DEW) requires school districts to use the Claims Reporting and Reimbursement System (CRRS) to report meal data for reimbursement. Due to insufficient controls over reporting, related to breakfast and lunch meal counts, three of the three (100%) months tested were inaccurate. This led to inaccuracies in meal counts reported in the CRRS system, as shown below: Month Type Recalculated Meal Count Reported Meal Count Variance(s) September 2023 Lunch 67,752 66,644 (1,108) March 2024 Breakfast 36,260 47,095 10,835 Lunch 66,089 55,254 (10,835) May 2024 Lunch 55,403 55,072 (331) This weakness resulted in a loss of accountability over meal count reporting and could lead to a reduction or forfeiture of future funding for this program. The District should develop control policies and procedures to ensure the number of meals served and reported to DEW agree to the respective daily meal count forms and the meals served / tabulated. The procedures should include an independent review of the meal counts manually entered into the point-of-sale system, based upon the daily meal count forms, and the meal counts manually entered into CRRS by an employee not associated with the computer entry. These review procedures should be acknowledged by initials / signatures. If there are errors or discrepancies between meals served / tabulated and the amounts reported to DEW, the District should maintain supporting documentation to demonstrate the meals reported to DEW were accurate and complete.

Categories

Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 520628 2024-001
    Material Weakness
  • 520629 2024-001
    Material Weakness
  • 520630 2024-001
    Material Weakness
  • 1097070 2024-001
    Material Weakness
  • 1097072 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $3.08M
10.555 National School Lunch Program $2.39M
84.027 Special Education Grants to States $1.53M
10.553 School Breakfast Program $721,271
84.287 Twenty-First Century Community Learning Centers $423,966
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $377,151
93.600 Head Start $224,508
10.559 Summer Food Service Program for Children $46,024
84.173 Special Education Preschool Grants $38,630
84.425 Covid-19 Education Stabilization Fund $11,572
84.424 Student Support and Academic Enrichment Program $1,350