Finding Text
Inaccurate Amount Reported on Monthly Reimbursment Claim - Understatement of $31,277 (Material Weakness and Non-Compliance) ALN Title and Number: 10.553 and 10.555 - Child Nutrition Cluster: School Breakfast and School Lunch Name of Federal Agency: U.S. Department of Agriculture Name of Pass-through Entity: Tennessee Department of Agriculture Condition: During our audit, it was noted that the April claim for reimbursement submitted by the District did not reconcile to the daily totals reported by individual schools. The amounts reported on the claim differed from the supporting documentation maintained at the school level. Criteria: In accordance with 2 CFR section 200.403 and 7 CFR section 210.8, costs charged to federal programs must be accurately reported and supported by accounting records. Monthly claims for reimbursement under the USDA National School Lunch Program must reflect actual allowable costs and be based on accurate records of reimburseable meals served during the claiming period. Cause: The condition noted above occurred because reconciliation procedures were not properly performed prior to submission of the reimbursement claim. The District did not ensure that the totals compiled for the monthly report agreed to the underlying school records. Effect: As a result, the District's reimbursement amount was $31,277 less than it was entitled to receive. Failure to reconcile claims to supporting documentation may result in inaccurate reporting and the potential loss of reimbursement revenue. Questioned Cost: None Recommendation: The District should strengthen internal controls over the preparation and review of reimbursement claims. Specifically, reconciliation between school-level reports and the monthly reimbursement claim should be performed and documented prior to submission. Management should review and approve all claims to verify accuracy, completeness, and agreement with records. Response: Vickie Dunaway, School Nutrition Director, corrected and resubmitted the claim in question, as soon as the issue was revealed. USDA paid the difference owed on October 28, 2025. Once Vickie completes the monthly claim, Leanne Green, Finance Director, reviews the paperwork, verifying that all is correct before the claim is filed.