Finding 1165256 (2025-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-12-18
Audit: 375728
Organization: School District of Waupaca (WI)
Auditor: KERBERROSE

AI Summary

  • Core Issue: The District failed to implement proper controls for overseeing the direct certification process, impacting eligibility for meal programs.
  • Impacted Requirements: Out of 59 tests, 3 exceptions (5.08%) indicate non-compliance with eligibility criteria for free and reduced meals.
  • Recommended Follow-Up: Management should ensure all year-end adjustments are identified and posted to improve compliance and oversight.

Finding Text

2025-004 – Child Nutrition Cluster – Eligibility Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Pass-Through Agency: Food and Nutrition Service Pass-Through Entity Identifying Number: Multiple Award Period: July 1, 2024 – June 30, 2025 Exceptions: 3 exceptions out of 59 tested (5.08%) Type of Finding: Compliance Finding and Material Weakness in Internal Control Over Compliance and Other Matter Criteria Any child enrolled in a participating school or summer camp, or attending a Summer Food Service Program (SFSP) meal service site, who meets the applicable program’s definition of “child,” may receive meals under the applicable program. For the National School Lunch Program (NSLP) and the School Breakfast Program (SBP), children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price, set by the School Food Authority (SFA), for their meals. Children participating in a SFSP meal service receive their meals at no charge. Condition The District has not properly implemented controls to oversee the direct certification process and monitor and update the free and reduced list for any changes. Cause The District has not properly implemented controls to oversee the direct certification process. Effect The eligibility test requirements applicable to the grant were not met. Recommendation We recommend that management take steps to ensure that all year-end adjustments are identified and posted for financial reporting purposes. Management’s Response The District is aware of the requirements and will attempt to compile the information necessary in the future. Responsible Official Austin Moore, Business Manager Anticipated Completion Date The District intends to work towards resolving this finding for the following year.

Corrective Action Plan

2025-004 – Child Nutrition Cluster - Eligibility - The District is aware of the student’s receiving benefits that are not eligible for benefits and will implements new procedures and a plan to update eligibility. Responsible Official – Austin Moore, Business Manager Anticipated Completion Date – The District will correct this in the subsequent fiscal year.

Categories

School Nutrition Programs Eligibility

Other Findings in this Audit

  • 1165253 2025-004
    Material Weakness Repeat
  • 1165254 2025-004
    Material Weakness Repeat
  • 1165255 2025-004
    Material Weakness Repeat
  • 1165257 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $512,412
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $411,896
93.778 MEDICAL ASSISTANCE PROGRAM $262,598
10.555 NATIONAL SCHOOL LUNCH PROGRAM $98,396
10.553 SCHOOL BREAKFAST PROGRAM $97,316
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $59,177
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $49,727
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $37,537
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $27,213
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $20,280
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $16,255