Finding 1201503 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396079
Organization: City of Newton, Massachusetts (MA)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to meal reimbursement claims, leading to discrepancies in reported meal counts.
  • Impacted Requirements: Monthly claims for reimbursement must be submitted within 60 days and must align with maintained meal count records as per federal regulations.
  • Recommended Follow-Up: Strengthen the review and approval process for claims to prevent future discrepancies and ensure compliance with federal requirements.

Finding Text

Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Matter Child Nutrition Cluster, ALN’s 10.553 & 10.555 Federal Award Identification Number (FAIN) and Year: 2025; FAIN not available. Pass-through Agency: Massachusetts Department of Elementary and Secondary Education Pass-through Identifying Number: 09-207 Award Period: July 1, 2024 through June 30, 2025 Compliance Requirement: Reporting Criteria or Specific Requirement: School food authorities and sponsors must submit monthly claims for reimbursement of meals served to eligible students within sixty (60) days following the last day of the month covered by the claim in accordance with CFR Title 7, sections 210.8, 220.11, 215.10, and 225.15(c). Each month’s claim for reimbursement and all data used in the claims review process must be maintained on file, and failure to maintain such records may be grounds for denial of reimbursement for meals served during the period covered by the records in question. Condition and Context: For one (1) of thirty-seven (37) claims for reimbursement selected for testing, the meal count within the data used in the claims review process did not categorically agree with the corresponding meal count identified within the monthly claim for reimbursement submitted to the State. Questioned Costs: None above the reportable threshold. Cause: The standard internal controls implemented for the review and submission of monthly claims for reimbursement were not applicable for the discrepancy observed resulting in a categorical difference (2) between the meal count data compared to meals claimed for reimbursement from the State. Effect: Noncompliance with the federal program occurred as the City claimed a reimbursement which did not categorically align with the supporting meal count record. Repeat Finding: Yes, 2024-002 Recommendation: We recommend the review and approval process over monthly claims for reimbursement be strengthened to enhance the prevention of discrepancies between the claim for reimbursement and underlying data. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Child Nutrition Cluster, ALN’s 10.553 & 10.555 Recommendation: We recommend the review and approval process over monthly claims for reimbursement be strengthened to enhance the prevention of discrepancies between the claim for reimbursement and underlying data. Explanation of disagreement with audit finding: Management agrees with the finding. Action taken in response to finding: Newton operated the National School Lunch Program (NSLP) during the Extended School Year (ESY) for the first time during the summer 2024, which created a reporting challenge. Students from across the district's 23 schools attended ESY in seven (7) schools/sites, but their school-year home schools could not be changed in the Student Information System (Aspen). Therefore, student meal counts reported to their home school on the FP9 but had to be reported on the DESE School Report for the ESY school/site they attended. Given the system interface complexities, some counts had to be manually entered, for which two (2) meal counts were incorrectly entered for breakfast versus lunch. Given that the district did not operate the School Breakfast Program (SBP) and did not serve breakfast, these two (2) manual errors were counted as lunch counts when entered for the School Report. The total meal count did match on the FP9 and School Report. For this inconsistency, the correct action should have been to manually update these two counts in the Point of Sale system (Mosaic) so that the two breakfast counts reflected correctly as lunch counts. Name(s) of the contact person(s) responsible for corrective action: Amy Mistrot, NPS Director of Business Operations. Planned completion date for corrective action plan: Newton was able to set conditional parameters in Aspen for ESY 2025 so that the student meal counts reported to their ESY school/site versus their home school, so this reporting issue was corrected the following summer.

Categories

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

Other Findings in this Audit

  • 1201501 2025-001
    Material Weakness Repeat
  • 1201502 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $7.04M
84.027 SPECIAL EDUCATION GRANTS TO STATES $3.71M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $2.91M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.84M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1.01M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $471,579
10.555 NATIONAL SCHOOL LUNCH PROGRAM $410,792
84.425 EDUCATION STABILIZATION FUND $396,486
84.U27 Reducing Time-Out Rooms $199,460
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $183,817
10.553 SCHOOL BREAKFAST PROGRAM $180,694
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $174,604
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $144,735
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $107,264
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $83,182
16.590 GRANTS TO ENCOURAGE ARREST POLICIES AND ENFORCEMENT OF PROTECTION ORDERS PROGRAM $54,177
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $50,687
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $50,000
16.U01 DEA ASSET FORFEITURES $44,898
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $29,019
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $22,672
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $21,614
16.U02 DEA SUPPORT OVERTIME REIMBURSEMENTS $12,201
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $11,153