Finding 383736 (2023-003)

Material Weakness
Requirement
IL
Questioned Costs
-
Year
2023
Accepted
2024-03-22

AI Summary

  • Core Issue: Inadequate record-keeping for meal claims from August 2022 to January 2023 led to discrepancies in reported meal counts and student eligibility status.
  • Impacted Requirements: Monthly claims for reimbursement were not supported by accurate documentation, violating federal regulations requiring detailed records for meal counts and eligibility.
  • Recommended Follow-Up: Continue using the point of sale system to track meals by eligibility status and ensure monthly reconciliation of records against claim forms.

Finding Text

Finding 2023-003: Reporting (50000) Assistance Listing # 10.553, 10.555 Federal Awarding Agency: U.S. Department of Agriculture Pass-through Agency: California Department of Education Program Title: Child Nutrition Cluster Criteria: SFAs and sponsors must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15(c)). Each month’s claim for reimbursement and all data used in the claims review process must be maintained on file. Accurate records must be maintained justifying all meals claimed. Failure to maintain such records may be grounds for denial of reimbursement for meals served and/or administrative costs claimed during the period covered by the records in question. Records are required to be retained for a period of three years after submission of the final Claim for Reimbursement for the fiscal year. Condition: From August 2022 through January 2023, all meals served were being hand tallied. Only total meals served were counted and there were no records maintained to document the free/reduced/paid status of the students receiving meals. At the end of the month, the District was applying an estimated percentage breakout of free/reduced/paid to the total meal counts, and using this estimate on their monthly CNIPS claim forms. In addition, the total meals documented on the District tally sheets could not be consistently reconciled to the total meals claimed for the two months sampled for testing (September 2022 and January 2023). In February 2023, the District implemented a point of sale system and began tracking meals by Free/reduced/paid status and reconciling system records to claim forms. Cause: Due to turnover at the District and changing procedures after COVID, the District experienced a delayed implementation of their point of sale system and continued tracking total meals by hand like they had done under the previous COVID flexibility waivers. Context: Discrepancies were noted for the months of August 2022 through January 2023. Effect: Meals reported could not be reconciled to total meals served or eligibility status of participating students. This could cause inaccurately claimed meal counts and inappropriate reimbursement rates based on free/reduced/paid eligibility. Questioned Cost: There was insufficient documentation to determine the total meals served or the breakout between free, reduced, and paid meals, therefore, a questioned cost cannot be calculated. The total child nutrition funding claimed for the six months in question was $254,604 Federal and $236,725 State. Recommendation: We recommend that the District continue to utilize a point of sale system and track all meals served by student eligibility. We further recommend that these records be reconciled against claim forms on a monthly basis. Views of Responsible Officials: The District started the 2022-23 school year without a point of sale system in place. The rollout of a new point of sale system took until January to get up at all sites and therefore created challenges for the cafeteria staff to keep up with keeping accurate records for meal claims. The point of sale has been in place at all sites since January 2023 and has not had issues related to tracking meal participation. The District is prioritizing systems that synchronize with the student information system to ensure accurate data is shared across all aspects of school operations that get reported through CALPADS.

Corrective Action Plan

We agree with the auditor’s comments, and the following actions will be taken to ensure all records are maintained for reporting purposes: 1. Implement a point-of-sale system 2. Use the point-of-sale system to track all meals served by student eligibility 3. Reconcile records against claim forms on a monthly basis as reimbursement claims are submitted to the California Department of Education The above steps have been completed and implemented since January of 2023 and the District maintains that it will continue the actions above to follow Child and Adult Care Food Program, Child Nutrition Cluster guidelines.

Categories

Cash Management Eligibility Reporting School Nutrition Programs

Other Findings in this Audit

  • 383737 2023-004
    Material Weakness
  • 383738 2023-003
    Material Weakness
  • 383739 2023-004
    Material Weakness
  • 383740 2023-003
    Material Weakness
  • 383741 2023-004
    Material Weakness
  • 960178 2023-003
    Material Weakness
  • 960179 2023-004
    Material Weakness
  • 960180 2023-003
    Material Weakness
  • 960181 2023-004
    Material Weakness
  • 960182 2023-003
    Material Weakness
  • 960183 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $213,438
10.553 School Breakfast Program $107,802
10.555 National School Lunch Program $52,345
84.011 Migrant Education_state Grant Program $50,421
84.425 Education Stabilization Fund $47,837
84.027 Special Education_grants to States $38,597
84.367 Improving Teacher Quality State Grants $34,350
84.424 Student Support and Academic Enrichment Program $17,681
84.365 English Language Acquisition State Grants $11,843
93.575 Child Care and Development Block Grant $10,524
84.358 Rural Education $5,665