FAC Explorer

Finding 1205348 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-31
Audit: 397048
Organization: Independent School District No. 548 (MN)
Auditor: EIDE BAILLY

AI Summary

  • Core Issue: Lack of proper documentation for student eligibility reviews in the National School Lunch and Breakfast Programs.
  • Impacted Requirements: Internal controls over compliance are weak, risking the inclusion of ineligible students in the programs.
  • Recommended Follow-Up: Implement a checklist to ensure review documentation is retained before adding students to the eligibility list.

Finding Text

2025-002 U.S. Department of Agriculture Child Nutrition Cluster Federal Financial Assistance Listing #10.555 National School Lunch Program Federal Financial Assistance Listing #10.553 School Breakfast Program Eligibility Material Weakness in Internal Control Over Compliance Retention of Review of Student Eligibility Criteria: Proper controls over eligibility include the retention of the review of Direct Certification or other income thresholds within the student file to verify review control has occurred prior to students being added to program. Condition: The Region Schools do not have an internal control system designed to retain the appropriate review documentation within the student file. Cause: The Region Schools were not aware documentation needed to be maintained. The review of eligibility was completed but no documentation was maintained. Effect: Students might be added to program that are not eligible for the program. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 75 participants out of 784 participants were selected for eligibility testing. Repeat Finding from Prior Years: No Recommendation: We recommend a checklist or other documentation be maintained to demonstrate review has been completed prior to students being added to the program as eligible for free or reduced meals. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2025-002 Federal Agency Name: U.S. Department of Agriculture Program Name and FALN # : Child Nutrition Cluster Federal Financial Assistance Listing #10.555 National School Lunch Program Federal Financial Assistance Listing #10.553 School Breakfast Program Finding Summary: The Region Schools do not have an internal control system designed to retain the appropriate review documentation related to student eligibility within the student file. Responsible Individuals: Bryan Jordan, Controller Corrective Action Plan: The Region Schools will retain documentation related to the review of eligibility of the students participating in the Program within the student file going forward. Anticipated Completion Date: Fiscal year ended June 30, 2026

Categories

School Nutrition Programs

Other Findings in this Audit

  • 1205343 2025-001
    Material Weakness Repeat
  • 1205344 2025-001
    Material Weakness Repeat
  • 1205345 2025-001
    Material Weakness Repeat
  • 1205346 2025-002
    Material Weakness Repeat
  • 1205347 2025-002
    Material Weakness Repeat
  • 1205349 2025-003
    Material Weakness Repeat
  • 1205350 2025-003
    Material Weakness Repeat
  • 1205351 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $628,865
10.553 SCHOOL BREAKFAST PROGRAM $74,617
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $11,949