Finding Text
2025-002 - Material Weakness (Child Nutrition Cluster) -Eligibility and Reporting Compliance Requirements Condition: The execution of the Federal Child Nutrition Program is the responsibility of the Bearcat Diner staff. None of the work performed by Bearcat Diner staff members is reviewed by a second staff member. Criteria: The secondary review of annual eligibility determination, annual eligibility verification, and monthly requests for Federal reimbursement is an important control activity needed to adequately ensure compliance with the requirements of the Federal Child Nutrition Program. Cause: The District was not aware that a secondary review of work completed was necessary to ensure an efficient and effective control environment. Effect or Potential Effect: Student eligibility for the free/reduced meal program could be determined incorrectly, including students who should qualify being incorrectly charged for meals or students who should not qualify incorrectly receiving free or reduced-price meals. The annual verification of free and reduced-price applications could be completed incorrectly, including miscalculation of eligibility redetermination, failure to properly notify households of confirmed or changed status, and failure to execute necessary changes to student status in the nutrition program software. Also, inaccurate information could be submitted on monthly claims for Federal reimbursement. Questioned Cost: None Context: We reviewed the District's internal control environment with the Child Nutrition Program and noted the lack of secondary reviews, but did not identify any compliance violations resulting from the lack of secondary reviews. However, such review is necessary to ensure effective internal controls over this program. Repeat Finding: Repeat finding of 2024-003 Recommendation: We recommend a second staff member 1) review the eligibility applications and calculation, ensuring accurate data is entered into the nutrition program software, 2) verify that the verification process is completed according to the proper timeline, 3) review the income verification information provided by families and ensure the proper status has been redetermined, 4) ensure families are timely notified of the confirmed or changed status, 5) verify necessary status changes have been updated in the nutrition program software, and 6) review information included in Federal reimbursement requests before they are submitted. Views of Responsible Officials and Planned Corrective Actions: The District will implement a secondary review process for verifying, entering, and confirming the status of the free and reduced applications. Documentation will be maintained to indicate the individuals performing completion and secondary review of required steps to verify timeliness and accuracy of eligibility determination and reporting.