Finding 553835 (2024-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-04-03
Audit: 352543
Organization: Shawano School District (WI)

AI Summary

  • Core Issue: The District incorrectly entered eligibility data for two students, leading to inaccurate federal reimbursement claims.
  • Impacted Requirements: Compliance with federal eligibility criteria for free and reduced lunch under the Child Nutrition Cluster program.
  • Recommended Follow-Up: Enhance procedures and controls, ensuring adequate oversight and cross-training in the Food Service Department.

Finding Text

2024-004 Child Nutrition Cluster: Eligibility Federal Agency: United States Department of Agriculture Federal program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Award Identification Number and Year: Unknown Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Number: Unknown Award Period: 07/01/2023 – 06/30/2024 Compliance Requirements Affected: Eligibility Type of Finding: Material Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Children in attendance are entitled to receive program benefits which include free or reduced lunch, if households meet stated income eligibility criteria per federal Income Eligibility Guidelines published in the Federal Register. Direct certifications are determined by the State of Wisconsin as to whether a student is to receive free, reduced or full fee lunch. This determination is entered by the District into the Food Service system. Condition: During our testing of eligibility, we noted a deviation in the eligibility determination made by the State of Wisconsin and the eligibility entered in the Food Service system. Questioned costs: None that exceed Federal threshold. Context: During our testing of eligibility, we noted that the District had entered an incorrect eligibility determination into the Food Service system for two of the forty individuals tested. The District entered in free lunch when it should have entered in reduced pricing, resulting in an incorrect count for reduced fee claims. Cause: The District experienced turnover in the Food Service Department. The District identified a resource to subsequently assume responsibilities and has received additional training and implemented appropriate procedures on a go forward basis. Effect: The District incorrectly entered two individuals for free lunch in the Food Service system when a reduced lunch should have been entered. For meals consumed by these two individuals, the counts submitted for Federal reimbursement would have been incorrect. Repeat Finding: Yes Recommendation: We recommend the District continue to enhance procedures and controls over the eligibility requirement with adequate oversight and cross-training for additional individuals knowledgeable of its requirements. View of Responsible Officials: There is no disagreement with this audit finding. See corrective action plan.

Corrective Action Plan

Child Nutrition Cluster – Eligibility The finding is a material weakness in internal control over federal awards due to incorrect eligibility determination entered into the Food Service System. The District will train individuals involved in the eligibility process on correct processes and reviews and implement controls to prevent the improper determination of eligibility. Responsible official: Janice Boucher, Finance Manager, jboucher@shawanoschools.org Anticipated Completion Date: June 30, 2025

Categories

Internal Control / Segregation of Duties Cash Management Eligibility School Nutrition Programs

Other Findings in this Audit

  • 553836 2024-004
    Material Weakness Repeat
  • 553837 2024-004
    Material Weakness Repeat
  • 553838 2024-004
    Material Weakness Repeat
  • 553839 2024-004
    Material Weakness Repeat
  • 553840 2024-004
    Material Weakness Repeat
  • 553841 2024-005
    Material Weakness
  • 553842 2024-005
    Material Weakness
  • 1130277 2024-004
    Material Weakness Repeat
  • 1130278 2024-004
    Material Weakness Repeat
  • 1130279 2024-004
    Material Weakness Repeat
  • 1130280 2024-004
    Material Weakness Repeat
  • 1130281 2024-004
    Material Weakness Repeat
  • 1130282 2024-004
    Material Weakness Repeat
  • 1130283 2024-005
    Material Weakness
  • 1130284 2024-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425U Covid 19 - Arpa-General Education $2.00M
84.027 Special Education Grants to States $747,133
84.010 Title I Grants to Local Educational Agencies $454,553
93.778 Medical Assistance Program $442,066
10.553 School Breakfast Program $177,432
10.555 National School Lunch Program $146,804
84.425D Covid 19 - Elementary and Secondary School Emergency Relief $132,187
84.060 Indian Education Grants to Local Educational Agencies $102,908
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $72,996
84.173 Special Education Preschool Grants $32,700
84.048 Career and Technical Education -- Basic Grants to States $30,529
84.424 Student Support and Academic Enrichment Program $20,094
84.425W Covid 19 - Apra-Arp Hcy $18,418
84.196A Education for Homeless Children and Youth $17,299
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $14,069
10.185 Local Food for Schools Cooperative Agreement Program $5,000
84.425U Covid 19 - Letrs $4,000
10.559 Summer Food Service Program for Children $1,620