Finding 1099910 (2022-001)

Federal Agency: U.S. Department of Agriculture Pass-Through Entity: PA Department of Education National Breakfast Program-ALN 10.553 National School Lunch Program-ALN 10.555 Noncompliance and Material Weakness in Internal Control over Eligibility and Reporting Condition: During compliance testing it was determined that the District claimed reimbursement for meals that were not allowed under existing agreements with the Pennsylvania Department of Education (administering agency). During the school year ending June 30, 2022, the District operated the National School Lunch Program (NSLP) and the School Breakfast Program (SBP) at four sites for grades K through 12. The District also entered into a agreement with Summit Early Leaming, Inc (Summit), wherein the District would provide meals to Summit for children ages 0 through 5 enrolled in childcare and Head Start Programs provided by Summit at various sites within the District. Our testing of Claims for Reimbursement for seven months during the school year ended June 30, 2022, revealed that in three of the seven months tested, the District claimed reimbursement through the NSLP and SBP for meals provided to Summit for use in their childcare and Head Start Programs. Our testing identified 2,508 meals that were not eligible for reimbursement under the NSLP, and 2,489 meals that were not eligible for reimbursement under the SBP. Further we noted that there was no indication that the claims for reimbursement under the NSLP and SBP were reviewed and approved by management. Criteria: Uniform Guidance provides a set of rules and requirements for determining eligibility and claims for reimbursement under Federal awards. Cause: Program personnel were not aware of the requirements related to eligibility and reporting/claiming reimbursement. Effect: The District claimed reimbursement for meals served that were not allowed under existing agreements with its administering agency. Questioned Costs: ALN 10.553- $6,483; ALN 10.555- $11,443