Finding Text
Finding: The District does not have a process to ensure compliance with verification of free and reducedprice applications. Criteria: The April 2022 Office of Management and Budget Compliance Supplement states the following for Compliance Requirements-Verification of Free and Reduce- Price Applications: ?By November 15th of each school year, the LEA?must verify the current free and reduced-price eligibility of households selected from a sample of applications that is has approved for free and reduced-price meals.? The Illinois State Board of Education issued the following in September 2021, ?The U.S. Department of Agriculture is requiring all School Nutrition Program sponsors who received and approved Household Eligibility Applications between July 1 and October 1, 2021, to conduct Verification for School Year 2021- 2022?.For Verification, School Food Authorities (SFAs) are required to verify income for a small percentage of households approved for free or reduced-price meals each school year.? Condition: The District selected an application to verify from a pile of all applications. The application selected for verification procedures was not approved for free or reduced-price meals and was the personal application of the employee performing the verification procedures. Error-prone applications were not selected. The population of applications and data submitted to the state of Illinois was from a manual count rather than the point-of-sale system. 76 Fulton County Community Unit School District #3 Schedule of Findings and Questioned Costs Year Ended June 30, 2022 Cause: The District did not use the food service software to randomly generate the list of applications to be verified. The District manually selected an application without consideration to the population or appearance of conflict of interest. Effect: The District did not perform verification procedures on an application that was approved for free or reduced-price meals. Questioned Costs: $0 Context: The District reported twenty-three applications for free or reduced-price meal benefits, two applications as error prone income applications, and one application to be tested on the Verification Summary Report submitted to the state of Illinois. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the District use the food service point of sale system software to generate reports to complete the Verification Summary Report and to randomly generate the error prone application to be tested through verification procedures. We recommend the District require documentation of supervisory review of all verification reports, procedures, and conclusions. The supervisor should sign the report prior to submission and should sign the conclusion form of each verified application indicating review and approval. Response and Corrective Action Plan: The District will require the food service software to be used for verification data and selection of applications. The District will require documented supervisory approval of verification conclusions and reports submitted to the state of Illinois. Person Responsible: Jodee Mathis