Finding Text
Federal Program
Child Nutrition Cluster (AL 10.553 & 10.555)
Special Tests & Provisions
Criteria
Per Uniform Guidance, by November 15th of each school year, the local education agency must verify the current
free and reduced price eligibility of households from a sample of applications that it has approved for free and
reduced price meals. Furthermore, the District is required to test the lesser of 3% or 3,000 of the approval
applications on file as of October 1, from error-prone applications. Finally, a system of internal controls requires
a process that would ensure all information listed in the District financial system to be accurate.
Condition
We noted that the District did not test 3% of all free and reduced applications. We also noted the verification was
not done by the due date and that in a population of two, we found an exception in one of them.
Questioned Costs
None
Context
The District did not verify the correct amount of free and reduced applications on hand as of October 1st. The
District also did not prepare this verification by the November 15th due date. Finally, we noted that one of the two
applications tested, the student was receiving a benefit they did not qualify for.
Cause
The District does not have controls in place to ensure the verification process is done by the due date, the
required amount of verifications are done, and that students receive only the benefit they qualify for.
Effect
The District did not verify applications by the required due date, they also did not test the lessor of 3% or 3,000,
and a student received a benefit that they were not eligible for.
Repeat Finding
No.
Recommendation
The District should implement policies and procedures for verifying free and reduced applications.
Corrective Action Taken
The District agrees with the recommendation and will review its policies and procedures.