Finding Text
2025-003 Significant Deficiency in Internal Control (Special Tests and Provisions) Federal Program: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Education Pass-Through Entity: Michigan Department of Education Pass-Through Number: 251970, 241970, 251980, 251960, 241960, 250904, 940900 & Entitlement Commodities Federal Award Year: July 1, 2024 to September 30, 2025 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 District had one month of meal claims under the school nutrition program where the supporting documentation did not agree with the meal claim. Cause: The District failed to have controls in place that would prevent, detect, or correct an incorrect monthly meal claim. Effect: The District’s internal controls were found to be ineffective as they claimed less meals than they should have, resulting in less revenue for the District. Questioned Costs: No questioned costs as the District did not claim more meals than they were supposed to during the year. Perspective Information: The finding appears to be an isolated instance. No sampling was necessary to determine this finding. Identification of Repeat Findings: None Recommendation: The District should have an additional level of review as it relates to submitting meal claims to ensure the correct amount is submitted based on the supporting documentation. View of Responsible Officials: Per discussion with Lisa Newton, Food Service Director, and Corey Bordo, Director of Business and Finance, the District recognized this one time issue and is implementing additional procedures to ensure that funds requested for meal reimbursements agree to total meals served.