Finding Text
Federal Agency: U.S. Department of Agriculture
Federal Programs: Child Nutrition Cluster
Assistance Listing Numbers: 10.553/10.555
Award Number: Federal award number: 237AKAK3N1199, Pass through entity award number: 02901
Award Years: 2024
Type of Finding: Material weakness in internal control over compliance and noncompliance.
Criteria: In accordance with 7 CFR 210.7(a) Reimbursement for school food authorities, each month’s claims for reimbursement and all data used in the claims review process must be maintained on file and consolidated. Further, 7 CFR 210.7(c)(1)(iii) dictates that accurate lunch counts must be made at the point of service.
Condition and Context: The District did not conduct accurate point of service meal counts in the cafeteria or in the classroom. Meals that were sent to the classroom for PreK were not counted at the point of service. Additionally, we tested two of the nine monthly claims submitted during the fiscal year and could not substantiate the meals reported for reimbursement to the meals that were actually served. All students served met eligibility criteria to receive free/reduced meals under the program, and therefore no students received benefits for which they were ineligible.
Cause: Lack of internal controls over meal count documentation.
Effect: The District had several monthly reports that required revision and subsequent adjustments to their reimbursements.
Questioned Costs: None noted.
Repeat Finding: This is not a repeat finding, however due to the prevalence of the lack of internal controls, we have determined it to be a systemic issue.
Recommendation: We recommend that the District follow corrective action plans set forth in their site review by State of Alaska Child Nutrition Programs to improve processes for documenting meal counts at the point of service, as required.
Management’s Response: Management concurs with this finding. See corrective action plan.