Finding 19939 (2022-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-05-22

AI Summary

  • Core Issue: The School District incorrectly verified a family's income using verbal communication instead of the submitted wage stub, leading to improper free meal status.
  • Impacted Requirements: Verification processes outlined in 7 C.F.R. § 245.6a were not followed, risking incorrect benefit calculations and potential over-reimbursement.
  • Recommended Follow-Up: Review the Ohio Department of Education's Verification Instruction Manual and ensure all verifications are conducted by a different official, with thorough checks of income documentation.

Finding Text

7 C.F.R. ? 245.6a required the School District to verify select free and reduced food service applications. The verification process includes selecting a sample of applications and obtaining written documentation regarding income. 7 C.F.R. ? 245.6a, paragraph (a)(7) documents that sources of information for verification include written evidence, collateral contacts, and systems of records. Written evidence shall be used as the primary source of information for verification. Written evidence includes written confirmation of a household?s circumstances, such as wage stubs, award letters, and letters from employers. Whenever written evidence is insufficient to confirm income information on the application or current eligibility, the local educational agency may require collateral contacts. Collateral contacts are verbal confirmations of a household?s circumstances by a person outside of the household. Agency records to which the State agency or local educational agency may have access can also be utilized for verification. The School District selected six applications for verification. One family verbally communicated their household earnings to the School District and later submitted a wage stub within the verification time period. However, the School District utilized the verbal earnings amount in the verification process rather than using the family's wage stub, resulting in the family receiving free status rather than denied or full pay status. Furthermore, this would have led to receiving less program income from providing meals as well as being over reimbursed for claimed meals relating to this family's actual benefit usage. The School District should review the annual ?Ohio Department of Education Office for Child Nutrition - Verification Instruction Manual? as well as the Federal requirements outlined within 7 C.F.R. ? 245.6a. All verifications should be performed in accordance with the manual and be performed by someone other than the original verifying official on the initial application. Additionally, all income documentation should be reviewed to ensure that amounts entered into the food service management system are correct. These procedures will help to ensure that benefits are correctly calculated and provided as well as help to ensure that the School District is not over or under reimbursed for claimed free and reduced lunches.

Categories

School Nutrition Programs Eligibility Program Income

Other Findings in this Audit

  • 19934 2022-001
    Material Weakness Repeat
  • 19935 2022-002
    Material Weakness
  • 19936 2022-001
    Material Weakness Repeat
  • 19937 2022-002
    Material Weakness
  • 19938 2022-001
    Material Weakness Repeat
  • 19940 2022-001
    Material Weakness Repeat
  • 19941 2022-002
    Material Weakness
  • 596376 2022-001
    Material Weakness Repeat
  • 596377 2022-002
    Material Weakness
  • 596378 2022-001
    Material Weakness Repeat
  • 596379 2022-002
    Material Weakness
  • 596380 2022-001
    Material Weakness Repeat
  • 596381 2022-002
    Material Weakness
  • 596382 2022-001
    Material Weakness Repeat
  • 596383 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $719,864
84.425 Covid-19 Education Stabilization Fund $644,623
84.027 Special Education_grants to States $522,104
84.371 Striving Readers $295,002
84.010 Title I Grants to Local Educational Agencies $294,678
10.553 School Breakfast Program $285,431
32.009 Emergency Connectivity Fund Program $149,784
84.287 Twenty-First Century Community Learning Centers $87,638
10.555 Covid-19 National School Lunch Program $73,004
84.367 Improving Teacher Quality State Grants $54,682
84.027 Covid-19special Education_preschool Grants $47,747
84.424 Student Support and Academic Enrichment Program $18,315
84.173 Special Education_preschool Grants $15,787
84.365 English Language Acquisition State Grants $6,799
21.019 Coronavirus Relief Fund $1,600
10.649 Pandemic Ebt Administrative Costs $614