Finding 519273 (2024-003)

Significant Deficiency
Requirement
L
Questioned Costs
$1
Year
2024
Accepted
2025-01-15

AI Summary

  • Core Issue: The District underreported $4,397.30 in meal claims due to inaccurate calculations and reporting over three months.
  • Impacted Requirements: Compliance with the Uniform Guidance and timely filing of Child Nutrition Program claims was not met, leading to a significant deficiency in internal controls.
  • Recommended Follow-Up: Implement review procedures for meal claims and improve tracking to ensure accurate reporting and compliance.

Finding Text

2024-003 Reporting Federal Assistance Listing Number: 10.553, 10.555, and 10.559 Program: Child Nutrition Cluster Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Pass-Through Number: ADE ED09-0001 Compliance Requirement: L. Reporting Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Questioned Costs: $4,397.30 of underreported claims Repeat Finding: This is not a repeat finding. Condition/Context: The District did not properly calculate, and report meal claims accurately for three of 4 months selected during the current year. This led to the District under-reporting $4,397.30 in student meal claims. Criteria: The Uniform Guidance compliance supplement. Local educational agencies (LEAs), institutions, and sponsors determine eligibility by comparing the data reported by the child’s household to published income eligibility guidelines. Child Nutrition Program claim forms should be supported by documentation showing the number of meals for which reimbursement was requested and document that the meals were served prior to the date of the reimbursement request. The claim reports should be filed on a timely basis. Cause: Management oversight. The District had insufficient controls and oversight over the Child Nutrition Program due to turnover in food service management personnel during the fiscal year. Effect: Noncompliance and internal control weakness. Without proper controls over applications and the filing of claims, the District could over or under claim their reimbursements from the Child Nutrition Program without detecting the error. Recommendation: We recommend that the District establish proper review procedures of meal claims received and properly track counts to ensure meals are reported accurately. Views of Responsible Officials: There is no disagreement with this finding. See the corrective action plan.

Corrective Action Plan

2024-003 Reporting Federal Assistance Listing Number: 10.553, 10.555, and 10.559 Program: Child Nutrition Cluster Federal Agency: U.S. Department of Education Pass-Through Agency: Arizona Department of Education Pass-Through Number: ADE ED09-0001 Compliance Requirement: L. Reporting Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Questioned Costs: $4,397.30 of underreported claims Repeat Finding: This is not a repeat finding. Condition/Context: The District did not properly calculate, and report meal claims accurately for three of 4 months selected during the current year. This led to the District under-reporting $4,397.30 in student meal claims. Criteria: The Uniform Guidance compliance supplement. Local educational agencies (LEAs), institutions, and sponsors determine eligibility by comparing the data reported by the child’s household to published income eligibility guidelines. Child Nutrition Program claim forms should be supported by documentation showing the number of meals for which reimbursement was requested and document that the meals were served prior to the date of the reimbursement request. The claim reports should be filed on a timely basis. Corrective Action: The District will implement review procedures as part of the meal claim process to ensure claims reported match with District records. The District will ensure any over/under reporting is investigated and resolved in a timely manner. The District will review reports from FY24 and ensure any unclaimed meals are properly reconciled, as applicable. Planned completion date for corrective action plan: For the period ending June 30, 2025. Name of the contact person responsible for corrective action: Lori Wilson, Business Manager

Categories

Questioned Costs Internal Control / Segregation of Duties Cash Management Eligibility Reporting School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 519274 2024-003
    Significant Deficiency
  • 519275 2024-003
    Significant Deficiency
  • 519276 2024-002
    Significant Deficiency
  • 519277 2024-001
    Significant Deficiency
  • 1095715 2024-003
    Significant Deficiency
  • 1095716 2024-003
    Significant Deficiency
  • 1095717 2024-003
    Significant Deficiency
  • 1095718 2024-002
    Significant Deficiency
  • 1095719 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $6.15M
84.027 Special Education Grants to States $615,234
10.553 School Breakfast Program $521,362
84.060 Indian Education Grants to Local Educational Agencies $334,239
15.130 Indian Education Assistance to Schools $263,952
16.839 Stop School Violence $193,049
84.371 Comprehensive Literacy Development $183,721
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $180,007
94.434 Preschool Development Grants $96,667
21.027 Coronavirus State and Local Fiscal Recovery Funds $75,573
84.048 Career and Technical Education -- Basic Grants to States $69,078
10.555 National School Lunch Program $68,975
93.778 Medical Assistance Program $67,992
10.665 Schools and Roads - Grants to States $53,110
84.358 Rural Education $47,258
84.010 Title I Grants to Local Educational Agencies $27,647
84.424 Student Support and Academic Enrichment Program $27,102
84.365 English Language Acquisition State Grants $25,063
10.559 Summer Food Service Program for Children $22,993
84.425 Education Stabilization Fund $6,565
84.173 Special Education Preschool Grants $3,486