Finding Text
Finding No. 2023-004
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
For School Breakfast Program and National School Lunch Program, children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price for their meals. A child’s eligibility for free or reduced price meals may be established by the submission of an annual application or statement which furnishes such information as family income and family size. Annual eligibility determinations may also be based on the child’s household receiving benefits under other federal assistance programs, this process is referred to as Direct Certification.
Condition
Several students reported as “low income” and receiving free or reduced price meals lacked appropriate qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
Questioned Costs
None.
Context
The procedures over Child Nutrition Cluster Eligibility were performed in conjunction with the Application for State School Aid.
The population of resident low income students includes 600 free students and 127 reduced students; our sample for the low income test included 189 free students and 46 reduced students. During the test of low income, we noted the following: (a) 16 free students did not have valid lunch applications or direct certification to support their eligibility determination; (b) Based on income reported on the lunch applications, 4 free students should have been categorized as reduced; and 2 free students and 2 reduced students should have been categorized as paid.
The sample was not statistically valid.
Effect or Potential Effect
The School District receives cash assistance by claiming meals served to eligible children for reimbursement. The School District may have received reimbursement for meals served to ineligible children.
Cause
The School District did not have procedures in place to ensure eligibility determination is always supported by qualifying documentation.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement procedures to ensure all eligibility determinations are supported by qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.