Finding 1169469 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-01-16

AI Summary

  • Core Issue: The District failed to comply with federal requirements for timely and accurate claims for reimbursement related to the Child Nutrition Cluster.
  • Impacted Requirements: Claims must be submitted within 60 days, and the State agency has an additional 30 days for consolidated reporting, as outlined in specific federal regulations.
  • Recommended Follow-Up: The District should strengthen internal controls to ensure accurate reporting and compliance with claims documentation moving forward.

Finding Text

FINDING: 2025-001 – Reporting Federal Agency: U.S. Department of Agriculture & U.S. Department of Education Federal Program: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555 and 10.558 Pass Through Agency: Minnesota Department of Education Pass Through Number: 1-0882-000 Award Period: Fiscal year ended June 30, 2025 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Criteria or specific requirement: Claims for Reimbursement -SFAs and sponsors must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15(c)). The State agency has an additional 30 days to submit a consolidated report to FNS via the FNS10 for NSLP/SBP and the FNS-418 for SFSP (7 CFR 210.5(d), 220.13(b)(2), 215.11(c)(2), and 225.8). Condition: During reporting testing it was noted that 1 report did not tie to the claims summary due to one site's breakfast program changing to non-severe during the summer and it not yet being captured on the report, and 1 report did not tie to the claims summary due to a clerical error where numbers were transposed in the claims summary by 36 meals which led to the school receiving $4 less than they would have otherwise. Cause: Internal controls were insufficient to ensure this reporting process occurred. Effect: The District was not in compliance with Uniform Guidance requirements for the proper documentation of claims reports. Repeat finding: No Recommendation: We recommend the District implements internal controls sufficient to ensure the reporting process is occurring. Views of responsible official: There is no disagreement with the audit finding. The District will implement sufficient procedures.

Corrective Action Plan

Significant Deficiency in Internal Control over Financial Reporting Recommendation: We recommend the District continue to improve its processes and procedures surrounding reporting of claims meal summaries. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will work to develop processes and procedures to ensure reports tie to claims summaries for meal counts. Name of the contact person responsible for corrective action: Shari Thompson Planned completion date for corrective action plan: June 30, 2026.

Categories

School Nutrition Programs Cash Management Material Weakness Reporting

Other Findings in this Audit

  • 1169463 2025-001
    Material Weakness Repeat
  • 1169464 2025-001
    Material Weakness Repeat
  • 1169465 2025-001
    Material Weakness Repeat
  • 1169466 2025-001
    Material Weakness Repeat
  • 1169467 2025-001
    Material Weakness Repeat
  • 1169468 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $1.63M
10.553 SCHOOL BREAKFAST PROGRAM $743,647
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $609,586
10.558 CHILD AND ADULT CARE FOOD PROGRAM $505,304
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $300,249
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $199,187
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $187,248
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $173,403
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $151,910
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $151,143
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $110,443
84.027 SPECIAL EDUCATION GRANTS TO STATES $56,643
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $42,840
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $31,118
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $8,031
10.555 NATIONAL SCHOOL LUNCH PROGRAM $7,171
84.425 EDUCATION STABILIZATION FUND $6,888