Finding Text
2023-002 Improve Controls Over Eligibility of Approved Free and Reduced Price Lunch
Applications
Federal Agency: U.S. Department of Agriculture
Cluster/Program: Child Nutrition Cluster
Award Name: National School Lunch Program
AL Number(s): 10.553/10.555
Award Year: 2023
Compliance Requirement: Eligibility
Type of Finding
Compliance
Internal Control over Compliance – Significant Deficiency
Criteria or Specific Requirement
To qualify for a free or reduced cost meal under the School Breakfast Program and National School
Lunch Program, a student’s family must submit an application to the local Food Service Program. The
Food Service Program is responsible for determining if applicants are eligible for participation in the
program based on income and family size standards established by the federal government.
Criteria or Specific Requirement (Continued)
Management is also responsible for establishing and maintaining effective internal control over compliance
with federal requirements that have a direct and material effect on a federal program. A deficiency
in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis.
Condition and Context
Of the forty (40) free and reduced lunch applications tested, there was no documented review by
a confirming official for one (1) application.
Cause
Weaknesses in the design and operation of internal controls.
Effect or Potential Effect
Due to the weaknesses in internal controls noted above, there is the risk that federal funds could be
required to be returned, as a result of incorrect eligibility determinations. No questioned costs were
reported as it is not quantifiable.
Recommendation
Written policies and procedures should be developed to document the eligibility determination process.
These internal controls over eligibility determination should be consistently implemented, and periodically
monitored for operating effectiveness, requiring a review of all eligibility determinations for
accuracy by an individual other than the one that initially approves the application.
Views of Responsible Official
Management agrees with the finding.
Planned Corrective Action
Management’s corrective action plan is included at the end of this report after the Schedule of Prior
Year Findings.