Finding 21336 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-07-17
Audit: 17870
Organization: Hope School District (AR)

AI Summary

  • Core Issue: The District overclaimed $1,811 and had $2,983 disallowed due to clerical errors and unmet meal pattern requirements in reimbursement claims.
  • Impacted Requirements: Monthly claims must accurately reflect the total number of eligible and participating students, based on daily record forms.
  • Recommended Follow-Up: Ensure careful data entry from daily records to claims, and verify meal components are documented correctly to avoid future discrepancies.

Finding Text

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 2903 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 2022-003. Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of students eligible for and number of students participating in free, reduced price, and paid meals served. The total meals served by category are to be derived from the daily record forms. Condition: An Administrative Review for the District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in November 2021. The review of the September 2021 Claim for Reimbursement resulted in a calculated over claim in the amount of $1,811 due to clerical errors in calculating meals served. In addition, $2,983 of the claim was disallowed due to meal pattern requirements not being met. Cause: The inaccurate reporting of meals served resulted from clerical errors in posting data from the daily record forms to the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. Questioned costs: The amount of questioned costs was $4,794. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise due care in the posting of data from the monthly account eligibility reports and daily record forms to the monthly claim for reimbursement. Views of responsible officials: We will not go in and add additional meals until the end of the month to keep the meals from being added twice. The Food Service Management Company Director handed out the right completed meals, but the paperwork did not back up the components in the meal. We will double check all paperwork to make sure the meal components are all listed on the production records.

Corrective Action Plan

We will contact DESE for guidance regarding this matter and implement proper controls over program expenditures. Misti Flowers, District Treasurer June 1, 2023 Action Started June 30, 2023 Action completed

Categories

Questioned Costs Reporting Cash Management Eligibility School Nutrition Programs

Other Findings in this Audit

  • 21337 2022-003
    Significant Deficiency
  • 21338 2022-001
    Material Weakness
  • 21339 2022-002
    Significant Deficiency
  • 21340 2022-001
    Material Weakness
  • 21341 2022-002
    Significant Deficiency
  • 21342 2022-001
    Material Weakness
  • 21343 2022-002
    Significant Deficiency
  • 597778 2022-003
    Significant Deficiency
  • 597779 2022-003
    Significant Deficiency
  • 597780 2022-001
    Material Weakness
  • 597781 2022-002
    Significant Deficiency
  • 597782 2022-001
    Material Weakness
  • 597783 2022-002
    Significant Deficiency
  • 597784 2022-001
    Material Weakness
  • 597785 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.30M
10.553 School Breakfast Program $464,496
84.367 Supporting Effective Instruction State Grants $227,560
84.027 Special Education_grants to States $130,976
10.555 National School Lunch Program $67,390
84.371 Comprehensive Literacy Development $63,560
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $57,782
12.U01 Rotc $50,972
10.582 Fresh Fruit and Vegetable Program $50,857
84.365 English Language Acquisition State Grants $45,893
84.196 Education for Homeless Children and Youth $40,877
84.358 Rural Education $39,962
84.425 Covid-19 - Education Stabilization Fund $36,439
84.173 Special Education_preschool Grants $13,723