Finding 1136924 (2024-001)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-05-15

AI Summary

  • Core Issue: The District did not verify eligibility determinations for online meal benefit applications, relying solely on PaySchools.
  • Impacted Requirements: This lack of verification violates the need for effective internal controls over Federal awards and compliance with USDA guidelines.
  • Recommended Follow-Up: Implement procedures to review all applications, ensuring accurate eligibility determinations for free and reduced-price meal benefits.

Finding Text

Non-Federal entities must establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the non-Federal entity is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 7 C.F.R. § 245.6(a) provides that each local educational agency participating in the National School Lunch Program, School Breakfast Program, Special Milk Program, or a commodity only school, shall provide meal benefit forms for use by families in making application for free or reduced price meals or free milk for their children. Furthermore, 7 C.F.R. § 245.6(c)(4) provides 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 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. During fiscal year 2024, the District received applications for free and reduced meals via physical paper and online submissions, in which eligibility was determined based on the USDA Eligibility Guidelines. The District's Food Service Director reviews physical applications prior to upload to PaySchools, however, the District relied solely on the eligibility determination made by PaySchools for all online submissions with no procedures in place to verify that the eligibility determination made by PaySchools was proper. Failure to review all applications could result in incorrect eligibility determinations.

Categories

School Nutrition Programs Matching / Level of Effort / Earmarking Eligibility

Other Findings in this Audit

  • 560481 2024-001
    Material Weakness
  • 560482 2024-001
    Material Weakness
  • 560483 2024-001
    Material Weakness
  • 560484 2024-001
    Material Weakness
  • 560485 2024-001
    Material Weakness
  • 1136923 2024-001
    Material Weakness
  • 1136925 2024-001
    Material Weakness
  • 1136926 2024-001
    Material Weakness
  • 1136927 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $125,465
10.555 National School Lunch Program $114,733
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $75,854
84.048 Career and Technical Education -- Basic Grants to States $43,706
21.027 Coronavirus State and Local Fiscal Recovery Funds $33,919
84.173 Special Education Preschool Grants $24,758
84.027 Special Education Grants to States $19,939
84.425 Education Stabilization Fund $11,943
84.424 Student Support and Academic Enrichment Program $10,864
84.365 English Language Acquisition State Grants $6,498
10.559 Summer Food Service Program for Children $5,811
10.556 Special Milk Program for Children $2,993
84.010 Title I Grants to Local Educational Agencies $2,700