Finding 31066 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-04-26
Audit: 33017
Organization: Highland School District (AR)

AI Summary

  • Core Issue: The District double claimed preschool meals on reimbursement forms, leading to an over claim of $24,476.
  • Impacted Requirements: Monthly claims must accurately reflect meals served, derived from the District's point of sale system.
  • Recommended Follow-Up: The District should enhance accuracy in claim preparation and monitor compliance to prevent future over claims.

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 6804 AUDIT PERIOD - YEAR ENDED JUNE 30, 2022 Reporting Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU). Reimbursement claim components include the total number of free, reduced price, and paid meals served. The total meals served by category are to be derived from the District's point of sale system. Condition: An administrative review conducted by the DESE, CNU reported that the number of preschool meals (breakfast and lunch) were double claimed on monthly claim forms from August 2021 through April 2022. The errors resulted in an over claim totaling $24,476. Cause: The inaccurate reporting of meals served resulted from the District adding preschool meals summarized in manual excel sheets to meals recorded in the point of sale system on the monthly claims for reimbursement. Effect: The District was not properly reimbursed for meals served during the year. The over claim was $24,476. Questioned costs: The amount of questioned costs was $24,476. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise greater care in the preparation of monthly claims for reimbursement. Views of responsible officials: The overclaim was repaid in February of 2023 and the District has put into place steps to prevent this from happening in the future by making sure overclaim does not occur again.

Corrective Action Plan

Formal finding #1: CNU Administrative finding- Monthly meals overreported on claims from August 2021 through April of 2022. Response: The overclaim was repaid in February of 2023 and the district has put into place steps to prevent this from happening in the future by making sure overclaim does not occur again.

Categories

Questioned Costs Reporting Cash Management School Nutrition Programs

Other Findings in this Audit

  • 31067 2022-002
    Material Weakness
  • 31068 2022-001
    Material Weakness
  • 31069 2022-002
    Material Weakness
  • 607508 2022-001
    Material Weakness
  • 607509 2022-002
    Material Weakness
  • 607510 2022-001
    Material Weakness
  • 607511 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 - Education Stabilization Fund $2.50M
84.010 Title I Grants to Local Educational Agencies $878,991
84.027 Special Education_grants to States $396,298
10.553 School Breakfast Program $242,779
84.367 Supporting Effective Instruction State Grants $100,010
10.555 National School Lunch Program $63,927
84.424 Student Support and Academic Enrichment Program $46,816
84.048 Career and Technical Education -- Basic Grants to States $39,464
84.358 Rural Education $31,939
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $12,018
84.173 Special Education_preschool Grants $9,979