Finding 1123417 (2024-002)

2024-002 Child Nutrition Cluster, ALN’s 10.553 & 10.555 Federal Award Identification Number (FAIN) and Year: 2024; FAIN not available. Pass-through Agency: Massachusetts Department of Elementary and Secondary Education Pass-through Identifying Number: 09-207 Award Period: July 1, 2023 through June 30, 2024 Compliance Requirement: Reporting Criteria or Specific Requirement: School food authorities and sponsors must submit monthly claims for reimbursement of meals served to eligible students within sixty (60) days following the last day of the month covered by the claim in accordance with CFR Title 7, sections 210.8, 220.11, 215.10, and 225.15(c). Each month’s claim for reimbursement and all data used in the claims review process must be maintained on file, and failure to maintain such records may be grounds for denial of reimbursement for meals served during the period covered by the records in question. Condition and Context: For six (6) of twenty-eight (28) claims for reimbursement selected in our statistically valid audit sample, the meal counts within the data used in the claims review process did not agree with the corresponding meal counts identified within the monthly claims for reimbursement submitted to the State. Upon further review, it was determined that the September 2023 claim for reimbursement submitted to the State was inaccurately prepared for all 23 schools for which meals were claimed for reimbursement. Questioned Costs: $284,295; which represents the difference in reimbursements claimed versus eligible reimbursements supported by the claims data. Cause: Internal controls implemented over the review and submission of monthly claims for reimbursement were not operating effectively. Effect: Noncompliance with the federal program occurred as the City claimed reimbursements for unsupported meal counts. Repeat Finding: No. Recommendation: We recommend the review and approval process over monthly claims for reimbursement be strengthened to ensure discrepancies between the claim for reimbursement and underlying data are detected and corrected timely. Views of Responsible Officials: Management agrees with the finding.