Finding Text
Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development
Federal Program: Child Nutrition Cluster
Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582
Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582)
Award Year: 2023
Type of Finding: Material weakness in internal control over compliance and material noncompliance.
Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price.
Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept.
Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification.
Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding.
Questioned Costs: None noted.
Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance.
Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements.
Management Response: Management agrees with this finding, see Corrective Action Plan.