Finding Text
2025-006: STUDENT MEAL APPLICATIONS Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: E. Eligibility Condition: During our testing of eligibility determinations under the Child Nutrition Cluster, we selected 40 student meal applications for review. Of the 40 applications tested, two applications were incorrectly classified based on the information provided on the applications. Specifically, one application was approved as free when it should have been approved as reduced, and one application was approved as reduced when it should have been approved as paid based on applicable eligibility guidelines. Criteria or Specific Requirement: Program regulations and guidance require school food authorities to accurately determine and document student eligibility for free, reduced-price, and paid meal benefits. District personnel are required to maintain documentation supporting eligibility determinations and retain records sufficient to demonstrate compliance with federal program requirements. Cause: The District's procedures and monitoring controls over the review, approval, and retention of meal eligibility applications were not operating effectively. Specifically, management did not ensure that eligibility determinations were consistently reviewed for accuracy. Effect: Incorrect eligibility determinations may result in students receiving meal benefits inconsistent with federal program requirements and may impact reimbursement claims submitted under the Child Nutrition Cluster programs. Repeat Finding: No. Recommendation: We recommend the District strengthen internal controls over eligibility determinations by: Establishing formal review procedures to ensure meal applications are approved in accordance with current USDA eligibility guidelines; implementing a secondary review process for eligibility determinations prior to final approval; maintaining complete and organized records supporting all eligibility determinations in accordance with federal record retention requirements; providing periodic training to personnel responsible for processing and approving meal applications. Views of Responsible Officials: The District concurs with this recommendation. See the corrective action plan in a separately published document.