Finding Text
National School Lunch Program - 2025- Project No. 4210 ALN 10.555 Passed through: ISBE Federal Agency: U.S. Department of Agriculture Criteria or specific requirement (including statutory, regulatory, or other citation): In accordance with 7 CFR Part 245 and Child Nutrition Program regulations, school districts must maintain approved free and reduced-price meal applications to support student eligibility determinations. Benefits must be accurately determined and properly applied based on documented household eligibility information. Condition: The District could not provide free and reduced-price meal applications for two (2) students selected for testing. Additionally, two (2) students were provided free lunches when, based on eligibility information, they should have been classified and provided benefits at the reduced-price level. One (1) student was provided reduced lunches, when, based upon eligibility information, they should have been classified as free lunches. Questioned Costs: The monetary impact was not quantified; however, the difference between free and reduced lunch reimbursement rates represents the questioned amount associated with the two misclassified students. Context: During testing of eligibility determinations under the Child Nutrition Cluster, a sample of student applications was selected to verify proper classification and benefit issuance. The District was unable to provide applications for two students included in the sample. Further review identified two students who were incorrectly approved for free meals instead of reduced-price meals and one student was approved for reduced-price meals instead of free meals. Effect: Failure to maintain required applications and properly determine eligibility may result in incorrect reimbursement claims and noncompliance with Child Nutrition Program requirements. This increases the risk of overclaiming federal reimbursement. Cause: The errors appear to be due to weaknesses in documentation retention and review procedures related to student eligibility determinations and benefit issuance. Recommendation: We recommend that the District strengthen internal controls over eligibility documentation and review procedures to ensure: All student applications are properly maintained and readily accessible; and Eligibility determinations are reviewed for accuracy prior to benefit approval. Periodic internal reviews should be conducted to verify compliance with Child Nutrition Program requirements. Management's response: Management agrees with this finding and response is included within the corrective action plan.