Finding 1217516 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-12
Audit: 403664
Organization: Hannibal School District No. 60 (MO)
Auditor: WADE STABLES PC

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over monthly meal count reporting for federal reimbursement claims.
  • Impacted Requirements: Compliance with 7 CFR 210.8(a) and 7 CFR 220.11(c) is not being met, leading to potential inaccuracies in reported meal counts.
  • Recommended Follow-Up: Implement a written procedure for a second-party review of Claims for Reimbursement before submission to ensure accuracy and compliance.

Finding Text

Finding 2025-001 – Significant Deficiency (Repeat Finding) Federal Agency: U.S. Department of Agriculture Passthrough Entity: Missouri Department of Elementary and Secondary Education Assistance Listing Number and Federal Program: Child Nutrition Cluster – 10.553 School Breakfast Program, 10.555 National School Lunch Program, 10.555 COVID-19 Supply Chain Assistance, 10.559 Summer Food Service Program for Children. Compliance Requirement: L. Reporting Criteria: Per 7 CFR 210.8(a) and 7 CFR 220.11(c), the District is required to have proper internal controls over the reporting of monthly meal counts to ensure that information submitted for free and reduced meals is accurate and complete. The monthly meal counts are reported to DESE for reimbursement based on the number of free and reduced meals served during the month. The amount of reimbursement will depend on the number of each type of meal and whether it was for breakfast or lunch. Condition: During testing, we noted a lack of oversight on one of the monthly Claim for Reimbursement forms. There was no indication that a review was performed before the form was submitted to DESE, nor was there indication that a subsequent review was performed after submission. It was noted that one building submitted a Claim for Reimbursement form for February 2025 that was not correctly completed. The meal count for lunch on the Claim for Reimbursement form did not match the meal count reported on the District’s Infinite Campus software. Cause: Control procedures were not in place to ensure that monthly Claims for Reimbursements and Free and Reduced applications are accurately calculated and input before the forms are submitted. Effect: Without timely review of reports before submission, requested grant revenue can be understated or overstated when based on incorrect grant reports. In addition, other grant noncompliance can be overlooked. This could result in missed funding, excess funding, or other adverse conditions with the grantors. Questioned Costs: No questioned costs noted. Perspective Information: This appears to be an isolated issue as only one of the twelve months tested contained an error where the meal count on the Claim for Reimbursement form did not match the meal count reported on the District’s Infinite Campus Software. Recommendation: We recommend that the District implement written procedures that require a monthly review be performed by a second party for Claims for Reimbursement for the food service programs. This should be done prior to submitting the reimbursement claim to DESE. The review should be performed to ensure that all information has been entered, is accurate, and is classified on the appropriate lines to ensure reimbursements are for the correct amounts.

Corrective Action Plan

Corrective Action Plan 1. Establish Written Procedures o The District will develop and adopt written procedures outlining the process for preparing, reviewing, and approving monthly Claims for Reimbursement for all food service programs (Breakfast, Lunch, and Summer). o Procedures will specify responsible staff, required documentation, timelines, and review steps prior to submission. 2. Implement Dual Review Process o The Food Service Director ( or designee) will prepare the monthly meal count report using data from the Infinite Campus system. o The assistant to the food service coordinator will perform a secondary review before submission to DESE. o The review will confirm: • Meal counts match Infinite Campus reports. • Correct classification of free, reduced, and paid meals. • Accuracy of totals by meal type (breakfas1/lunch). o Both preparer and reviewer will sign and date the Monthly Meal Count Verification Form as documentation ofreview. 3. Post-Submission Verification o After clairo submission, the reviewer will retain a copy of the DESE Claim for Reimbursement and supporting Infinite Campus reports in a centralized digital folder. o Random quarterly spot checks will be performed to confirm continued accuracy and compliance. 4. Training o The Food Service Director and business office staff will receive annual training on meal count reporting procedures and DESE claim submission requirements. o Training records will be maintained. 5. Timeline for Implementation o Written procedures finalized and approved by December 15, 2025. o Dual review process implemented beginning with the December 2025 claim. o Staff training completed by January 31, 2026. 6. Responsible Parties o Food Service Director - preparation and initial verification. o Chief Operations Officer - review and approval. o Superintendent - oversight and policy adoption. We are committed to ensuring the accuracy and integrity of our meal count reporting and eligibility determinations. The District will implement these corrective actions in a timely manner to address the identified findings and ensure compliance with applicable federal regulations.

Categories

School Nutrition Programs

Other Findings in this Audit

  • 1217512 2025-001
    Material Weakness Repeat
  • 1217513 2025-001
    Material Weakness Repeat
  • 1217514 2025-001
    Material Weakness Repeat
  • 1217515 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $982,213
84.027 SPECIAL EDUCATION GRANTS TO STATES $943,544
10.553 SCHOOL BREAKFAST PROGRAM $398,101
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $168,538
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $128,381
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $73,951
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $36,204
84.425 EDUCATION STABILIZATION FUND $30,000
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $22,612
10.555 NATIONAL SCHOOL LUNCH PROGRAM $19,414
10.579 CHILD NUTRITION DISCRETIONARY GRANTS LIMITED AVAILABILITY $12,476
93.079 COOPERATIVE AGREEMENTS TO PROMOTE ADOLESCENT HEALTH THROUGH SCHOOL-BASED HIV/STD PREVENTION AND SCHOOL-BASED SURVEILLANCE $100