Finding 1165133 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-12-17
Audit: 375455
Organization: Hemlock Public Schools (MI)

AI Summary

  • Core Issue: The School District did not provide sufficient documentation for direct certification verifications, only showing one instance instead of the required three.
  • Impacted Requirements: Failure to conduct verifications on time may have led to eligible students missing out on free or reduced meals, affecting funding from the Child Nutrition Cluster.
  • Recommended Follow-Up: Investigate the documentation process during the transition of Food Service Directors to ensure compliance and prevent future issues.

Finding Text

Federal register section 7 CFR Part 245.6(b)(3) requires School Districts to conduct direct certification contacts with Supplemental Nutrition Assistance Program (SNAP) records a minimum of three times annually - at or around the beginning of the school year, three months after the initial effort and six months after the initial effort. Schools Districts are required to keep direct certification documentation on file for a minimum of three years after submission of the final claim reimbursement for the fiscal year in which the records apply. The School District was only able to provide supporting documentation for one direct certification verification from December 4, 2024 for the 2024-2025 fiscal year. If direct certification verifications were not performed on the required timeline, students may have been eligible for free or reduced meals under the Child Nutrition Cluster who were not claimed as such. This could result in higher reimbursement for meals from the State of Michigan rather than through the Child Nutrition Cluster. There was turnover in the Food Service Director position during the first half of the fiscal year. The former Food Service Director was familiar with the direct certification verification requirements, and had historically completed the verifications as required. The School District believes the direct certification verifications were performed timely. The School District believes that this is a documentation issue where, in the transition between Food Service Directors, the original documentation was likely misplaced.

Corrective Action Plan

The audit finding indicated that direct certifications were not completed as required attributed to turnover in the Food Service Director position. There certifications may or may not have been done, we were not able to provide documentation to prove this. The new Food Service Director (Billie Jo Davis) is in place and has a strong understanding of the NSLP program and its requirements. Direct Certifications have been scheduled and placed on calendars for her and the finance team to ensure the files are completed and the documentation is properly stored moving forward. Submitting a direct certification file monthly will allow us to have up to date information on our students.

Categories

Cash Management School Nutrition Programs

Other Findings in this Audit

  • 1165128 2025-002
    Material Weakness Repeat
  • 1165129 2025-002
    Material Weakness Repeat
  • 1165130 2025-002
    Material Weakness Repeat
  • 1165131 2025-002
    Material Weakness Repeat
  • 1165132 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $334,412
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $244,269
10.555 NATIONAL SCHOOL LUNCH PROGRAM $148,187
10.553 SCHOOL BREAKFAST PROGRAM $58,637
84.425 EDUCATION STABILIZATION FUND $52,801
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $46,527
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $17,623
93.778 MEDICAL ASSISTANCE PROGRAM $4,190