Finding 1223643 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-07-15
Audit: 407155
Organization: St. Marys City School District (OH)

AI Summary

  • Core Issue: 21.7% of student applications were incorrectly assigned eligibility due to inadequate internal controls.
  • Impacted Requirements: Compliance with 7 CFR § 245.6(a) and (c)(1) regarding meal benefit eligibility determinations.
  • Recommended Follow-Up: Review and enhance procedures for eligibility determination and implement stronger controls to ensure accuracy.

Finding Text

7 CFR § 245.6(a) provides in part that each local educational agency for schools participating in the National School Lunch Program, School Breakfast Program or Special Milk Program or a commodity only school, shall provide meal benefit forms for use by families in making application for free or reduced price meals or free milk for their children. Furthermore, 7 CFR § 245.6(c)(1) provides in part that the local educational agency must determine household eligibility for free or reduced price meals either through direct certification or the application process at or about the beginning of the school year. The local educational agency must determine eligibility for free or reduced price meals when a household submits an application or, if feasible, through direct certification, at any time during the school year. Of the student applications tested for fiscal year 2025, 13 of 60 students selected (21.7%) were not assigned proper eligibility based on the Direct Certification ran by the Nutrition Services Supervisor due to a lack of proper internal control procedures over eligibility and updates in the food service software. Failure to properly review applications and Direct Certification resulted in incorrect eligibility determinations in the School Districts Food Service System and may have resulted in errors in the School Districts SNP Reimbursement applications. The School District should review procedures for determining eligibility and implement additional control practices which will help ensure eligibility is properly and accurately determined based on applicable criteria and updated in the system if the determination changes. Failure to properly assign eligibility for students could result in eligibility determination discrepancies and possible audit findings.

Corrective Action Plan

A 100% review of applications was completed on October 10, 2025. The Food Service Supervisor will run an original direct certification before school starts and import that into Linq system. A 100% verification is completed in the fall. Each month a new direct certification is ran to catch any changes.

Categories

School Nutrition Programs Cash Management Eligibility

Other Findings in this Audit

  • 1223642 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $973,958
84.027 SPECIAL EDUCATION GRANTS TO STATES $502,538
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $445,593
10.553 SCHOOL BREAKFAST PROGRAM $400,247
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $58,448
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $52,023
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $28,503
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $14,445
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $2,669