Finding Text
2025-005 – Eligibility – Lack of Retention of Applications for Participants – Material Weakness in Internal Control over Compliance/Material Noncompliance ALN and Title: 10.558 Child and Adult Care Food Program Pass-Through Entity: NM Early Childhood Education & Care Department Identifying Number: 21000 Award Year: 2024-2025 School Year Condition: The District did not retain the applications substantiating eligibility of children for free or reduced meals during the year. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Criteria (Continued): These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Per Title 7 US Code of Federal Regulations Part 226.10d, all records to support claims shall be retained for a period of three years after the date of submission of the final claim for the fiscal year to which they pertain. Questioned Costs: None noted. Effect: The appropriateness of the eligibility of students for whom the District submitted claims for the 2024-2025 school year cannot be verified due to a lack of retention of the applications used to determine student eligibility. Cause: A deficiency in the internal control system to properly train and monitor the personnel who are assigned to ensure appropriate documentation retention in line with the grant requirements. Auditor’s Recommendation: The auditor recommends the District implement controls to ensure that the applications used to determine eligibility for participation within the program be retained for three years as required by the relevant grant requirements. Views of Responsible Officials of Auditee: The District will strengthen internal controls by implementing procedures, training and monitoring to ensure all eligibility applications and supporting documentation are properly maintained and retained for a minimum of three years in accordance with grant requirements and are available for audit review. Responsible Party: Student Nutrition Supervisor Anticipated Completion Date: June 30, 2026