Finding Text
Criteria: The Board must perform appropriate meal counts to determine the reimbursable meals as described in 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), and 220.7.(e)(1)(i). Condition: Our audit revealed noncompliance concerning unallowable expenditures related to reimbursed meals from the Department of Agriculture. During our review of the 2025 oversight monitoring report, we found instances where proper meal counts were not being performed over meal carts, resulting in ineligible meals being reimbursed. Questioned Costs: The Board was found noncompliant in their annual monitoring by the Department of Education in the amount of $298,854.54 for improper meal counts leading to ineligible meals being reimbursed. Effect: Failure to perform proper meal counts can increase the risk of fraud, result in financial statement misstatements, and expenditures that are not for an allowable activity. Cause: Improper controls over meal counts. Recommendation: We recommend the Board ensure it performs meal counts and ensure all meals requested for reimbursement meet the required criteria.