Finding Text
Significant Deficiency - Internal Control over Eligibility and Reporting
Program: Child Nutrition Cluster
Assistance Listing Number: 10.553/10.555/10.559
Pass-Through Agency: Wisconsin Department of Public Instruction
Criteria: A system of internal control should be in place and operating effectively to achieve a higher reliability that errors or irregularities in reporting and eligibility would be discovered by your staff.
Condition: Food service claims and supporting documentation are prepared by the same person, and there is lack of documentation of review by someone other than the preparer. Eligibility determinations for applications for free and reduced price school meals are prepared by one individual, and there is no review performed by someone other than the preparer.
Cause: There is lack of documentation of review by someone other than the preparer of food service claims and applications for free and reduced price school meals eligibility determinations.
Context: For two of the three claims selected for testing, supporting documentation was prepared by the same person who prepared and submitted the food service claims without any other documented review. For all seven of the applications selected for testing, the eligibility determination was completed by one individual without any review. The sample was not statistically valid.
Effect: Without proper review of food service claims, incorrect amounts could be claimed on the reports. Without proper review of eligibility determinations, individuals could incorrectly be determined eligible for free or reduced price school meals.
Questioned Costs: None noted.
Recommendation: A system should be put in place for the District to sufficiently document the review of the eligibility determinations of food service claims and applications for free and reduced price school meals.
Views of Responsible Officials: Management agrees with finding 2023-003 and will make efforts to implement recommended procedures.