Finding 1173998 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-02-17

AI Summary

  • Core Issue: A student was misclassified for free and reduced meal eligibility, affecting reimbursement accuracy.
  • Impacted Requirements: Compliance with USDA guidelines and state reporting for meal classifications.
  • Recommended Follow-Up: Enhance review procedures and provide training for staff on eligibility classifications.

Finding Text

Criteria: Schools are required to ensure that all meals claimed for reimbursement are accurately classified and supported in accordance with USDA Child Nutrition Program guidelines and state reporting requirements. Claims must reflect only eligible meals and correct classifications to ensure proper reimbursement. Condition: During our testing of child nutrition program, we identified one instance in which a student was misclassified when determining eligibility for free and reduced meals. Specifically, the student was classified as free but should have been classified as paid. This resulted in an inaccurate classification of the student in the School system and possible inaccurate claim being submitted to the state agency. Cause: The deviation appears to stem from a data entry error in the system. Effect: Although the error appears isolated, the misclassification increases the risk of: Inaccurate reimbursement amounts, and noncompliance with federal and state Child Nutrition Program regulations. The sample did not identify additional deviations; however, the identified exception requires reporting as a control failure for this instance. Questioned Costs: Not Applicable Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management reinforce review procedures over free and reduced classifications based on eligibility forms used and provide refresher training to staff responsible for classification and reporting. Corrective Action: The Academies will implement a monitoring system to ensure there are no clerical errors recording data in the system.

Corrective Action Plan

The Academies will implement a monitoring system to ensure there are no clerical errors recording data in the system.

Categories

School Nutrition Programs Subrecipient Monitoring Cash Management Eligibility Reporting

Programs in Audit

ALN Program Name Expenditures
10.555 Child Nutrition Cluster $494,041
84.010 Title I, Part A, Basic Grants: Low-Income and Neglected $408,797
84.027 Special Education Cluster $235,339
84.365 Title III, Limited English Proficiency $88,430
84.010 Title IV, Student Support and Academic ESSA School Improvement (CSI) Funding for LEAs $72,288
84.424 Title IV, Student Support and Academic Enrichment $50,000
84.367 Title II, Improving Teacher Quality $45,955