Finding 385074 (2023-001)

Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting, Special Tests and Provisions Criteria According to 7 CFR §210.8, §220.11, §215.10, and §225.15(c), the District shall establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. Additionally, the District must verify the current free and reduced‐price eligibility of households selected from a sample of applications based on the total number of approved applications on file on October 1 by November 15 of each school year. Condition Paid meals per National School Lunch Program (NSLP) Claims did not agree to supporting documentation. Additionally, eligible free and reduced‐price student counts per the School Food Authority (SFA) Verification Collection Report did not agree to supporting documentation. Cause District management did not provide adequate oversight over the food service department to ensure records and other relevant support documentation were maintained in accordance with District policies. Effect The District did not comply with eligibility and reporting compliance requirements for the Child Nutrition Cluster. Context Paid meals served for one month at two school sites per NSLP Claims did not agree to District documentation, under‐reported by 300 and over‐reported by 3 meals respectively. Additionally, the number of applications per SFA did not agree to District documentation, under‐reported by 12 and two students respectively. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure that management provides adequate oversight over the food service department to ensure records and other relevant support documentation are maintained in accordance with District policies and Child Nutrition Cluster program. Views of Responsible Officials See Corrective Action Plan.