Finding 481181 (2023-004)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-08-15

AI Summary

  • Core Issue: Many applications for meal benefits were either not signed by the food service director or had incorrect income calculations, leading to wrong eligibility decisions.
  • Impacted Requirements: Compliance with 7 C.F.R. § 245.6(a) and § 245.6(c)(4) regarding application review and income assessment.
  • Recommended Follow-Up: The District should enhance procedures and controls for eligibility determinations to ensure accuracy and compliance.

Finding Text

7 C.F.R. § 245.6(a) provides that each local educational agency participating in the National School Lunch Program, School Breakfast Program, Special Milk Program, or a commodity only school, shall provide meal benefit forms for use by families in making application for free or reduced-price meals or free milk for their children. Furthermore, 7 C.F.R. § 245.6(c)(4) provides the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. When a household submits an application containing complete documentation and the household’s total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced-price benefits, as applicable. Of the applications tested for fiscal year 2023, 31.8% were not signed by the food service director to indicate review of application and agreement with the benefit determination. Additionally, the benefits on 4.5% of the applications were incorrectly calculated based on the household’s total current income and household size and the income eligibility limits. Failure to properly review applications and calculate household income and household size resulted in incorrect eligibility determinations. The District should review procedures for determining eligibility and implement additional control practices which will ensure eligibility is properly and accurately determined based on applicable criteria and updated in the system if the determination changes.

Categories

School Nutrition Programs Eligibility

Other Findings in this Audit

  • 481178 2023-004
    Material Weakness
  • 481179 2023-004
    Material Weakness
  • 481180 2023-004
    Material Weakness
  • 481182 2023-004
    Material Weakness
  • 481183 2023-005
    Material Weakness
  • 481184 2023-005
    Material Weakness
  • 481185 2023-005
    Material Weakness
  • 481186 2023-005
    Material Weakness
  • 481187 2023-005
    Material Weakness
  • 1057620 2023-004
    Material Weakness
  • 1057621 2023-004
    Material Weakness
  • 1057622 2023-004
    Material Weakness
  • 1057623 2023-004
    Material Weakness
  • 1057624 2023-004
    Material Weakness
  • 1057625 2023-005
    Material Weakness
  • 1057626 2023-005
    Material Weakness
  • 1057627 2023-005
    Material Weakness
  • 1057628 2023-005
    Material Weakness
  • 1057629 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $276,722
10.553 School Breakfast Program $113,350
84.287 Twenty-First Century Community Learning Centers $51,750
10.556 Special Milk Program for Children $41,499
84.367 Improving Teacher Quality State Grants $39,970
84.010 Title I Grants to Local Educational Agencies $38,781
84.424 Student Support and Academic Enrichment Program $26,178
84.173 Special Education_preschool Grants $6,513
84.027 Special Education_grants to States $1,493
10.649 Pandemic Ebt Administrative Costs $628
84.425 Education Stabilization Fund $287
84.358 Rural Education $160