Finding 1168810 (2025-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-01-12

AI Summary

  • Core Issue: 24 students were incorrectly classified for meal eligibility beyond the allowed 30-day rollover period.
  • Impacted Requirements: Eligibility for free or reduced meals must be based on current applications or direct certification, as per 7 CFR 245.6(c).
  • Recommended Follow-Up: Provide training for food service staff on compliance and review all student eligibility statuses to ensure valid applications are on file.

Finding Text

Child Nutrition Cluster – Eligibility Criteria or specific requirement Per 7 CFR 245.6(c), eligibility for free or reduced price meals, as determined through an approved application or by direct certification, must remain in effect for the entire school year and for up to 30 operating days into the subsequent school year. When using a prior year’s application or completion of direct certification, that eligibility status may only be used for up to 30 operating days in the current school year, or until a new eligibility determination is made, whichever comes first. Condition During testing, auditor determined that 24 students had an incorrect eligibility status utilized for a portion of the school year. Context Staff in charge of the food service eligibility determinations did not realize that there were students still utilizing their prior year application or direct certification past the 30 day rollover period. They did not become aware of this until the end of the first semester, at which time, they sent letters to the households requesting that new applications be submitted. If a new application was not received, they were then switched to paid. Of the original sample that the auditor tested, 1 student was found to have utilized their prior year application for eligibility for the entire year. Auditor also analyzed the remaining student population and inquired about any students that had differing eligibility statuses at various points throughout the year. 23 of those students’ changes resulted from the error with the rollover period. Cause The issue was caused by turnover within the District and a lack of sufficient training. Effect Households received benefits that they were not eligible for. For the 24 students, meals were estimated to have been improperly reimbursed in the amount of $2,205. This amount was calculated based upon the number of free or reduced meals that they received, while also considering the reimbursement rate of the correct eligibility status that they were eventually moved to. Recommendation We recommend that the District look for training opportunities for food service staff members to ensure that they have a good understanding of the program’s compliance requirements. Additionally, all students receiving free or reduced price meal benefits should be reviewed to ensure that they have a valid application or direct certification on file. Views of responsible officials and planned corrective actions See Corrective Action Plan.

Corrective Action Plan

Condition During testing, auditor determined that 24 students had an incorrect eligibility status utilized for a portion of the school year. Recommendation We recommend that the District look for training opportunities for food service staff members to ensure that they have a good understanding of the program’s compliance requirements. Additionally, all students receiving free or reduced price meal benefits should be reviewed to ensure that they have a valid application or direct certification on file. Comments on the Finding The District agrees with the finding and has implemented procedures to prevent this, in the future. Actions Taken As of the date of this notice, training opportunities will be sought out to further food service staff members’ educations regarding the program compliance requirements. Eligibility for all students will be reset each year to ensure that only those who are direct certified or that have submitted an application and are eligible for free or reduced meals will receive those benefits.

Categories

Cash Management Eligibility School Nutrition Programs

Other Findings in this Audit

  • 1168805 2025-003
    Material Weakness Repeat
  • 1168806 2025-003
    Material Weakness Repeat
  • 1168807 2025-003
    Material Weakness Repeat
  • 1168808 2025-004
    Material Weakness Repeat
  • 1168809 2025-004
    Material Weakness Repeat
  • 1168811 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $233,737
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $195,563
84.425 EDUCATION STABILIZATION FUND $86,773
10.553 SCHOOL BREAKFAST PROGRAM $85,731
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $52,123
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $29,033
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $19,283
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $17,645
84.358 RURAL EDUCATION $16,346
17.285 REGISTERED APPRENTICESHIP $5,750
32.004 UNIVERSAL SERVICE FUND - SCHOOLS AND LIBRARIES $861