Finding Text
Criteria: Annually, each student applying for free or reduced meal prices must complete and submit an application to the District by October 1st. Additionally, on a monthly basis the State produces a listing of the children enrolled in the District who receive federal assistance and qualify for free meals (direct certification). Condition: During our testing of compliance with the federal program, we noted two instances in which the information regarding household income or household size from the submitted applications was incorrectly entered into the District’s computer program. As a result, one applicant was determined to be eligible for reduced meal prices that qualified for free, and another applicant was determined to be eligible for reduced meal prices that should been paid. Questioned costs: None that require reporting. Context: A sample was selected from the applications on file that that had been approved as qualifying for free or reduced-price meals. The information on the applications was compared to the information entered into the District’s computer program to test whether the eligibility was properly determined. Based on a sample size of 40 applications, we noted that there were data input discrepancies on two of the applications. We further determined that the eligibility status was incorrectly determined on those two applications. Effect or potential effect: Internal control over the determination of food service program eligibility requirements needs to be strengthened. Failure to properly determine the school lunch program eligibility status of students increases the risk that students who do not qualify for the free or reduced benefits under the program will improperly receive benefits throughout the year. Cause: The District’s procedures for determining eligibility include manually entering the information from the applications into the computer determination program. The information is entered by the Food Service Director and not verified by a second person. The procedure of not having a second person review the information resulted in incorrect data not being identified and corrected. Recommendation: We recommend that the information be entered into the computer determination program by one individual and then verified by the Food Service Director. The review process is a necessary control procedure designed to reduce the risk of noncompliance with the eligibility requirements. Views of responsible officials: The Business Office has met with the responsible party and explained the need to be more careful. There is also a new person responsible for that input.