Finding 1167610 (2025-005)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-01-05

AI Summary

  • Core Issue: The District submitted reimbursement claims for meals served to students who were not eligible, resulting in questioned costs.
  • Impacted Requirements: The District did not comply with eligibility requirements for free and reduced meals, leading to an estimated $33,771 in ineligible reimbursements.
  • Recommended Follow-Up: The District should amend its program application to include all education centers served and ensure future claims are for eligible students.

Finding Text

Criteria: For the year ended June 30, 2025, it was noted that meals submitted for reimbursement included meals for students that were not eligible per the District's application for the program. Condition: We noted that free and reduced meals reported for reimbursement were higher than meal counts tracked through Skyward for East Alton-Wood River School District No. 14 students. Questioned Costs: During our testing, we selected three months for detail testing. We found that for September 2024, October 2024, and March 2025, the District was reimbursed for $3,296, $3,449, and $5,174 of ineligible free and reduced meals, respectively. We extrapolated this difference for 8.5 months which resulted in estimated questioned costs of $33,771. Context: The District was reimbursed for an estimated $33,771 of free and reduced meals that were provided to ineligible students. Effect: The District was not in material compliance with the Eligibility requirements. Cause: During the 2024-2025 school year, the District agreed to serve breakfast and lunch for the Journeys Program, an off-site Regional III alternative learning program serving students from multiple districts. The District failed to include this education center in its program application. Recommendation: The District should apply for reimbursement for meals that were served to students included in their program application or take measures to amend the program application. Management's Response: The Superintendent will amend their application in future years to include all education centers that will be served by the District. See complete management response in the Corrective Action Plan.

Corrective Action Plan

Condition: For the year ended June 30, 2025, it was noted that meals submitted for reimbursement included meals for students that were not eligible per the District's application for the program, resulting in the District being reimbursed in excess for an estimated $33,771. Recommendation: The District should apply for reimbursement for meals that were served to students included in their program application or take measures to amend the program application. Management Response: During the 2024-2025 school year, East Alton-Wood River Community High School District #14 began providing breakfast and lunch service for the Region III Journeys Program, an off-site alternative learning program serving students from multiple districts including EAWR. This was the first year EAWR had ever provided meals for Journeys, and the District implemented this service with the good-faith intention of ensuring that all students attending the program had access to daily nutritious meals. Because this was a new service arrangement, the District did not realize that our existing Community Eligibility Provision (CEP) approval documentation needed to be amended to include the additional educational site. The meals served to students at the Journeys Program were therefore included on the monthly reimbursement claims. The variance identified by the auditors reflects only the meals served at this second site, which are not captured in Skyward because some of the Journeys students are not enrolled at EAWR. There was no intent to misclaim meals, and the District did not receive financial benefit beyond the actual cost of preparing and providing meals. The additional breakfasts and lunches prepared for Journeys (approximately 20 breakfasts and 20-30 lunches daily) do not exceed the District's total CEP enrollment capacity and represent meals that were prepared, delivered, and made available to students. Additionally, in prior years another CEP district provided meals to the Journeys Program under similar circumstances without receiving reimbursement from Region III districts, which contributed to our understanding of customary practice within the cooperative. This was an administrative oversight associated with the first year of providing meal service to an off-site program and not the result of intentional noncompliance or an attempt to secure unearned reimbursement. No financial harm occurred to the program, as all meals claimed were prepared and made available to students in accordance with CEP expectations for universal access. To ensure future compliance, the District will amend its CEP application to include all educational centers served by EAWR in subsequent program years. Anticipated Date of Completion: June 30, 2026

Categories

Eligibility Cash Management School Nutrition Programs

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $284,449
84.027 SPECIAL EDUCATION GRANTS TO STATES $174,363
10.553 SCHOOL BREAKFAST PROGRAM $50,417
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $50,000
93.778 MEDICAL ASSISTANCE PROGRAM $35,013
84.425 EDUCATION STABILIZATION FUND $29,104
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $26,674
10.555 NATIONAL SCHOOL LUNCH PROGRAM $13,394