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.