Finding Text
Assistance Listing Number, Federal Agency, and Program Name - Child Nutrition Cluster - 10.555: National School Lunch Program and 10.553: National School Breakfast Program and 10.559: Summer Food Service Program Federal Award Identification Number and Year - National School Lunch Program: 251960, 251980, 241960 and 241980; National School Breakfast Program: 251970 and 241970; Summer Food Service Program: 250900 and 240900 Pass-through Entity - Michigan Department of Education Finding Type – Significant Deficiency in Internal Control, Immaterial Noncompliance Repeat Finding - No Criteria - In accordance with OMB requirements, the District can only request funds for meal reimbursements based on total meals served, no more or no less. Condition - The School District did not maintain effective internal controls over the school nutrition program to ensure the accuracy of meals served, as reported on monthly claims for reimbursement. Questioned Costs - None. Identification of How Questioned Costs Were Computed - Not applicable. The finding is related to a lack of monitoring controls and not tied to any known questioned costs. Context - The School District did not claim the correct amount of meals when filing for meal reimbursements under the school nutrition program. All months were later reviewed and corrected monthly claims for reimbursement were submitted. The updated claim amounts are reflected in the financial statements. Cause and Effect - The District failed to have controls in place that would prevent, detect, or correct an incorrect monthly meal claim. The District’s internal controls over compliance were found to be ineffective which caused instances of immaterial noncompliance. Recommendation - The District should begin reconciling meals served prior to requesting reimbursements for said meals. Views of Responsible Officials and Corrective Action Plan - Going forward, the food service director will coordinate a check procedure to review monthly meal counts before submitting reimbursement from Michigan Department of Education.