Finding Text
U.S. DEPARTMENT OF AGRICULTURE
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555
PASS-THROUGH NUMBER 1802
AUDIT PERIOD - YEAR ENDED JUNE 30, 2024
2024-001. Reporting
Criteria or specific requirement: Monthly claims for reimbursement are required to be submitted to the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU), as required by 7 CFR 210.8 and 7 CFR 220.11. Eligible schools that have elected the Community Eligibility Provision (CEP) apply an alternative reimbursement option. As required by 7 CFR 245.9, reimbursement through the CEP is based on free and paid claiming percentages applied to the total number of reimbursable lunches and breakfasts served each month, respectively.
Condition: During our review of child nutrition claim for reimbursement forms, we noted the District did not utilize the Community Eligibility Provision (CEP) calculation to determine the maximum number of eligible meals. As a result, the October 2023 claim for reimbursement exceeded the maximum allowed resulting in an overclaim of $552.
Cause: Lack of management oversight, training, and not utilizing the CEP calculation method to determine the maximum number of meals allowed resulted in an overclaim.
Effect: The District was not properly reimbursed for meals served during the year.
Questioned costs: The amount of question costs was $552.
Context: The two monthly claim for reimbursement forms tested did not calculate the maximum number of eligible meals utilizing the CEP method.
Identification as a repeat finding: No
Recommendation: The District should contact the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit for guidance regarding this matter.
Views of responsible officials: The District has consulted with the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) for guidance and technical assistance. Per CNU guidance, the District is in the process of submitting an amended claim for October 2023 to correct the $552 discrepancy. We anticipate acceptance of this claim, resolving the issue.
The District has fully implemented the required CEP compliance procedures and has trained personnel to ensure future claims adhere to federal and state regulations. Standard Operating Procedures (SOP) for the Child Nutrition Program have also been updated to prevent recurrence of this issue.