Finding 389505 (2023-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300462
Organization: Ojai Unified School District (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District lacks adequate controls to ensure that monthly Claims for Reimbursement accurately reflect the number of meals served, leading to discrepancies.
  • Impacted Requirements: Compliance with Title 7, U.S. Code of Federal Regulations, Parts 210.8 and 220.11 is not met, as the District overclaimed 151 meals, resulting in excess reimbursement of approximately $7,141.
  • Recommended Follow-Up: The District should establish procedures to comply with federal regulations, retain all supporting documentation, and ensure meal counts on Claims for Reimbursement match system reports.

Finding Text

Federal Program Affected Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education (CDE) Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: L (Reporting) Criteria or Specific Requirements Per Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11, School Food Authorities (SFA) must establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement. Prior to submission of a monthly Claim for Reimbursement, each school food authority shall review the breakfast and lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. The objective of this review is to ensure that monthly claims include only the number of free, reduced price and paid breakfasts and lunches served on any day of operation to children currently eligible for such meals. SFA staff shall maintain on file each month's Claim for Reimbursement and all data used in the claims review process, by school. The above-noted CFR section also states that the SFA shall compare each school's daily counts of meals served against the product of the number of children in that school currently eligible for free, reduced price and paid lunches, respectively, times an attendance factor. Condition The District did not have sufficient controls in place to ensure that monthly Claims for Reimbursement accurately reflected the numbers of meals served. We noted discrepancies between the daily meal counts and the monthly Claims for Reimbursement. It is not clear what records were used to file the monthly Claims for Reimbursement, as the system reports provided to the auditor for the months of August 2022, October 2022, and January 2023 did not agree to the meal counts reported on the Claims for Reimbursement. For the three months noted, the District overclaimed 151 meals, which is approximately $7,141 of excess reimbursement. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation for the monthly Claims for Reimbursement. A nonstatistical sample of 4 months out of 12 months were selected for reporting testing. Effect The District has not complied with the requirements identified in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Cause The condition identified appears to have materialized due to the District’s lack of established procedures to ensure compliance with the requirements under Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11. Repeat Finding Yes, see prior year finding 2022-007. Recommendation The District should review the requirements stated in Title 7, U.S. Code of Federal Regulations, Subtitle B, Chapter II, Subchapter A, Parts 210.8 and 220.11 and implement procedures to address the control deficiencies currently identified. The District should retain all supporting documentation used to complete the monthly Claims for Reimbursements and ensure the number of meals reported on the Claims for Reimbursements agree to the supporting system reports.

Categories

Subrecipient Monitoring Cash Management Reporting School Nutrition Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 389485 2023-005
    Material Weakness
  • 389486 2023-005
    Material Weakness
  • 389487 2023-005
    Material Weakness
  • 389488 2023-005
    Material Weakness
  • 389489 2023-005
    Material Weakness
  • 389490 2023-005
    Material Weakness
  • 389491 2023-005
    Material Weakness
  • 389492 2023-005
    Material Weakness
  • 389493 2023-002
    Material Weakness
  • 389494 2023-002
    Material Weakness
  • 389495 2023-002
    Material Weakness
  • 389496 2023-002
    Material Weakness
  • 389497 2023-002
    Material Weakness
  • 389498 2023-002
    Material Weakness
  • 389499 2023-002
    Material Weakness
  • 389500 2023-003
    Material Weakness
  • 389501 2023-003
    Material Weakness
  • 389502 2023-003
    Material Weakness
  • 389503 2023-003
    Material Weakness
  • 389504 2023-003
    Material Weakness
  • 389506 2023-003
    Material Weakness
  • 389507 2023-004
    Material Weakness
  • 389508 2023-004
    Material Weakness
  • 389509 2023-004
    Material Weakness
  • 389510 2023-004
    Material Weakness
  • 389511 2023-004
    Material Weakness
  • 389512 2023-004
    Material Weakness
  • 389513 2023-004
    Material Weakness
  • 965927 2023-005
    Material Weakness
  • 965928 2023-005
    Material Weakness
  • 965929 2023-005
    Material Weakness
  • 965930 2023-005
    Material Weakness
  • 965931 2023-005
    Material Weakness
  • 965932 2023-005
    Material Weakness
  • 965933 2023-005
    Material Weakness
  • 965934 2023-005
    Material Weakness
  • 965935 2023-002
    Material Weakness
  • 965936 2023-002
    Material Weakness
  • 965937 2023-002
    Material Weakness
  • 965938 2023-002
    Material Weakness
  • 965939 2023-002
    Material Weakness
  • 965940 2023-002
    Material Weakness
  • 965941 2023-002
    Material Weakness
  • 965942 2023-003
    Material Weakness
  • 965943 2023-003
    Material Weakness
  • 965944 2023-003
    Material Weakness
  • 965945 2023-003
    Material Weakness
  • 965946 2023-003
    Material Weakness
  • 965947 2023-003
    Material Weakness
  • 965948 2023-003
    Material Weakness
  • 965949 2023-004
    Material Weakness
  • 965950 2023-004
    Material Weakness
  • 965951 2023-004
    Material Weakness
  • 965952 2023-004
    Material Weakness
  • 965953 2023-004
    Material Weakness
  • 965954 2023-004
    Material Weakness
  • 965955 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $390,949
10.553 School Breakfast Program $220,303
10.555 National School Lunch Program $109,727
84.367 Improving Teacher Quality State Grants $78,665
10.579 Child Nutrition Discretionary Grants Limited Availability $73,122
84.424 Student Support and Academic Enrichment Program $29,744
84.365 English Language Acquisition State Grants $20,892
10.665 Schools and Roads - Grants to States $12,804
84.027 Special Education_grants to States $2,192
84.173 Special Education_preschool Grants $1,618
10.558 Child and Adult Care Food Program $1,411
84.425 Education Stabilization Fund $75