Finding Text
Non-Federal entities must establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the non-Federal entity is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. During fiscal year 2024, the District participated in Child Nutrition Cluster programs, for which the Federal Government reimburses the District for eligible children. During the course of the school year, the District is required to determine a child's eligibility to receive program benefits. The District accepted paper and online applications for free and reduced meals, with which eligibility was determined based on several factors, including, but not limited to family size and income. For online applications the household was able to complete the application in the PaySchools system directly through their account, while paper applications were completed by the household and returned to the District where it was then input into PaySchools. The District contracted with PaySchools to determine eligibility for both types of applications; however, the District had no procedures in place to ensure the system determined the proper eligibility status based on the information provided in the application. Failure to implement controls over all eligibility applications could result in ineligible students receiving benefits. The District should implement control procedures for paper and online applications to ensure students are properly marked as paid, free, or reduced.