Finding 507842 (2024-004)

Federal agency: U.S. Department of Agriculture Federal program name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Federal Award Identification Number and Year: 212MN061N1199 - 2024 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-0213-000 Award Period: June 30, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During eligibility testing, it was noted that the District did not have a second person reviewing the eligibility determinations. Questioned Costs: None Criteria or Specific Requirement: In the case of the National School Lunch Program, children belonging to households meeting certain eligibility requirements may receive meals at no charge or at reduced price. A child’s eligibility for free or reduced-price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. The District should have internal controls designed to ensure proper documentation of eligibility. Context: During our testing, it was noted that all of the manual applications entered into the system were not reviewed by someone other than the preparer. Effect: Lack of control to ensure proper classification of students participating in the programs could result in improper classifications and errors in meal count reports. Cause: The District did not reinstate their review process once the eligibility waivers ended. Repeat Finding: Not a repeat finding. Recommendation: We recommend that District designate a second person to review applications. Views of Responsible Officials: There is no disagreement with the audit finding.