Finding 1174997 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-23

AI Summary

  • Core Issue: The District under-reported meal claims by 20 lunches, totaling $90.80, due to management oversight.
  • Impacted Requirements: Claims for reimbursement must be supported by accurate documentation of meal counts as per Child Nutrition Cluster guidelines.
  • Recommended Follow-Up: Implement a verification process where a second employee reviews and approves all NSLP Claim forms before submission.

Finding Text

2025-002 Reporting Federal Assistance Listing Number: 10.553, 10.555 Program Title: Child Nutrition Cluster Federal Agency: U.S. Department of Agriculture Passthrough Entity: Arizona Department of Education Passthrough Number: ADE ED09-0001 Compliance Requirement: L. Reporting Award Period: July 1, 2024 – June 30, 2025 Finding Type: Noncompliance, Significant Deficiency in Internal Control Questioned Costs: N/A Repeat Finding: No. Condition/Context: During our review of meals claims submitted for reimbursement, we noted variances between the District’s meal counts and what was submitted to the Arizona Department of Education. For four months tested, meals claims were under-reported by 20 lunch meals, which calculated to $90.80. Criteria: Child Nutrition Cluster claim forms should be supported by documentation showing the number of meals for which reimbursement was requested. This documentation should be maintained to support what was requested for reimbursement by ADE. Effect: Without proper controls over applications and the filing of claims, the District could over or under claim their reimbursements from the Child Nutrition Program without detecting the error. Cause: Management oversight. Recommendation: We recommend the District have a second employee verify and approve all NSLP Claim forms to ensure the claims submitted are accurate and complete prior to submission. Views of Responsible Officials: There is no disagreement with this finding.

Corrective Action Plan

2025-002 Reporting Federal Assistance Listing Number: 10.553, 10.555 Program Title: Child Nutrition Cluster Federal Agency: U.S. Department of Agriculture Passthrough Entity: Arizona Department of Education Passthrough Number: ADE ED09-0001 Compliance Requirement: L. Reporting Award Period: July 1, 2024 – June 30, 2025 Finding Type: Noncompliance, Significant Deficiency in Internal Control Questioned Costs: N/A Repeat Finding: No. Condition/Context: During our review of meals claims submitted for reimbursement, we noted variances between the District’s meal counts and what was submitted to the Arizona Department of Education. For four months tested, meals claims were under-reported by 20 lunch meals, which calculated to $90.80. Criteria: Child Nutrition Cluster claim forms should be supported by documentation showing the number of meals for which reimbursement was requested. This documentation should be maintained to support what was requested for reimbursement by ADE. Effect: Without proper controls over applications and the filing of claims, the District could over or under claim their reimbursements from the Child Nutrition Program without detecting the error. Corrective Action Plan: Management will ensure meals claims are reviewed, approved, and tie to supporting meals served before claims are submitted. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Elizabeth Ibarra, Business Manager

Categories

Internal Control / Segregation of Duties Cash Management Reporting School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 1174995 2025-002
    Material Weakness Repeat
  • 1174996 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $268,013
84.425 EDUCATION STABILIZATION FUND $171,740
84.027 SPECIAL EDUCATION GRANTS TO STATES $104,100
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $49,818
10.553 SCHOOL BREAKFAST PROGRAM $40,984
10.555 NATIONAL SCHOOL LUNCH PROGRAM $27,916
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $27,159
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $14,827
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $2,768