Finding 540995 (2024-001)

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 5703 AUDIT PERIOD - YEAR ENDED JUNE 30, 2024 2024-001 Eligibility Criteria or specific requirement: The District is required to process applications submitted for free and reduced meals for the District's child nutrition program and classify them in accordance with federal guidelines established by the U.S. Department of Agriculture. District officials must indicate the approval date, indicate level of benefit for which each child is approved, and sign or initial the application. Condition: During our test of 25 free and reduced meal applications, we noted 22 meal applications that were processed electronically that did not include a documented review by the determining official. Although the electronic applications were properly classified for the level of benefit eligible, there was no evidence that the determining official manually reviewed and approved the applications before final determination. Cause: District personnel did not properly monitor the approval process to ensure electronic applications were properly completed. Effect or potential effect: Free and reduced price meal applications were not properly completed by the District's determining official. Context: An examination of 25 free and reduced price meal applications for completeness and proper classification from a total population of approved applications of 1,122. Identification as a repeat finding: No Recommendation: The District should establish controls to ensure electronic free and reduced price meal applications are properly completed by the District's determining official. Views of responsible officials: The determining official will print the online application and approve each one by initialing after review. We have also submitted this finding to the software company to request an approval process or check box to be added to the software.