Finding Text
2023-006 Federal Agency: United States Department of Agriculture
Federal Program Name: Child Nutrition Cluster
Assistance Listing Number: 10.553, 10.555, 10.559
Pass-Through Agency: Wisconsin Department of Public Instruction
Pass-Through Number: N/A
Award Period: 07/01/2022 – 06/30/2023
Compliance Requirement Affected: Special Tests and Provisions–Verification of Applications
Type of Finding: Significant Deficiency in Internal Control over Compliance
Condition: The District performed the required verification process, however, a categorically eligible individual was inadvertently included in the sample. As the application should have been excluded, the District did not verify the required number of applications.
Context: During our testing of the verification process, it was determined that one of the three selected applications was not excluded from the required sample based on categorical eligibility. This resulted in the required verification percentage to not be met.
Criteria or Specific Requirement: The District is required to verify the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15.
Cause: The District experienced turnover in the eligibility determination role for free and reduced lunch. As such, the procedures performed were based on the understanding of the new employee who has since attended and received additional training and has implemented appropriate procedures on a go forward basis.
Effect: The District may have households that were not eligible for free or reduced lunch receive this benefit as well as the reverse with eligible households charged full fee, based on the required percentage of applications not reviewed during the verification process.
Repeat Finding: No
Recommendation: We recommend the District continue to enhance procedures and controls over the verification compliance requirement with adequate oversight and cross-training for additional individuals knowledgeable of its requirements.
View of Responsible Officials: There is no disagreement with this audit finding. See corrective action plan.