Finding 1206646 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-14
Audit: 398746
Organization: Keppel Union School District (CA)
Auditor: NIGRO & NIGRO PC

AI Summary

  • Core Issue: The District submitted claims for meal reimbursements that included overreported breakfast counts, leading to excess reimbursements.
  • Impacted Requirements: Claims must be submitted within 60 days and supported by accurate data, as outlined in federal regulations.
  • Recommended Follow-Up: Implement a reconciliation process to compare meal tracking with attendance records, investigating any discrepancies to ensure accurate claims.

Finding Text

Repeat Finding? No Criteria: Code of Federal Regulations, 7 CFR sections 210.8, 220.11, 2015.10 and 225.15(c), require that monthly claims for reimbursement for meals and snacks served to eligible students be submitted within 60 days following the last day of the month covered by the claim. In conjunction each month’s claim for reimbursement and all data used in the claims review process must be maintained on file. Condition: During our audit, we haphazardly selected the October 2024 and December 2024 CNIPS claims for reconciliation to supporting documentation. We identified overreported breakfast counts in both months. The October 2024 claim was overstated by 24 breakfasts, resulting in excess reimbursement of $91.66. The December 2024 claim was overstated by 9 breakfasts, resulting in excess reimbursement of $34.37 Context: This deficiency was noted in both of the two months tested. Questioned Costs: October 2024 CNIPS claim resulted in excess reimbursement of $91.66 and December 2024 CNIPS claim resulted in excess reimbursement of $34.37. Cause: The District relied on meal preparation tracking counts rather than the actual number of meals served to pupils in attendance. Effect: This resulted in the District being over-reimbursed by $126.03. Recommendation: The District should implement a reconciliation process comparing meal preparation tracking forms to the Saturday School attendance forms. Any variances should be investigated, and meals not actually served to pupils should be excluded from the CNIPS claim. Views of Responsible Officials: Keppel Union School District Cafeteria site managers are now required to review their production records prior to entering data into the point-of-sale (POS) system. This ensures that all quantities and meal counts are accurate. Additionally, managers must verify that children with allergies are properly identified and accurately accounted for in both production.

Corrective Action Plan

Corrective Actions Implemented: 1. Monthly Reconciliation Process: A reconciliation procedure has been implemented requiring cafeteria site managers to compare meal production records, point-of-sale (POS) reports, and student attendance records (including Saturday School attendance, when applicable) prior to submission of CNIPS claims. Any discrepancies are investigated and corrected. 2. Verification of Meal Counts: Site managers are now required to review production records and POS data to ensure that only meals actually served to eligible students are included in reimbursement claims. 3. Staff Training: Training has been provided to cafeteria staff and site managers on proper meal counting and claiming procedures to ensure compliance with federal requirements. 4. Supervisory Review: All monthly CNIPS claims are now subject to review and approval by the Child Nutrition Director prior to submission to ensure accuracy and completeness. 5. Ongoing Monitoring: The Director will conduct periodic internal reviews of meal counting and claiming procedures to ensure continued compliance and prevent recurrence of this issue. The District believes these corrective actions address the cause of the finding and will ensure accurate reporting of meals served going forward.

Categories

Cash Management HUD Housing Programs

Other Findings in this Audit

  • 1206642 2025-003
    Material Weakness Repeat
  • 1206643 2025-003
    Material Weakness Repeat
  • 1206644 2025-003
    Material Weakness Repeat
  • 1206645 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.553 SCHOOL BREAKFAST PROGRAM $1.22M
84.425 EDUCATION STABILIZATION FUND $334,848
10.555 NATIONAL SCHOOL LUNCH PROGRAM $162,839
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $146,101
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $129,343
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $89,610
84.027 SPECIAL EDUCATION GRANTS TO STATES $58,590
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $33,424
10.558 CHILD AND ADULT CARE FOOD PROGRAM $32,790
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $3,437
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $2,064
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $119