Finding Text
Assistance Listing Number, Federal Agency, and Program Name 10.553/10.555, Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 221960/231960 2022/2023, 221970/231970 2022/2023
Pass through Entity - Michigan Department of Education
Finding Type - Significant deficiency
Repeat Finding - No
Criteria - Secondary reviews and approval processes surrounding cash management/reporting and the request for reimbursement submitted to draw down funds for this grant are a vital part of internal control that reduced the risk of administrative errors and inaccuracy of reporting of meals served.
Condition - During the testing of internal controls surrounding the child nutrition program claims reimbursement reporting, it was identified that review of the meal counts and monthly claims reports was not taking place.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - The School District is required to submit monthly claim reports to the Michigan Department of Education for the free and reduced price meals provided at the School District. Each school building in the School District must maintain count sheets of the meals provided in order for the School District to submit claim reports to the State for reimbursement. These meal count sheets are then used to compile the data in the claims report. The School District did not perform a review over the meal count sheets and the monthly claim for reimbursement.
Cause and Effect - Due to the lack of review of the meal counts and claim reports, the School District underreported the number of meals provided to the students by approximately $700.
Recommendation - The School District should implement procedures to ensure that review and approval of the reimbursement requests, as well as the meal count sheets, are taking place to ensure accuracy of amounts requested for the grant.
Views of Responsible Officials and Corrective Action Plan - The 2022 2023 school year marked the return to students having to pay for their school meals after the alternative circumstance during COVID 19. The School District had an FS bookkeeper who was hired in spring 2020. The 2022 2023 school year was her first time filing school meal claims based on whether students were free, reduced, or full pay. She started by exporting student counts from Skyward and then adjusting them for GSRP and Heartwood student meal claims. Since this was a manual process, a few errors occurred. This FS bookkeeper resigned in spring 2023. The School District hired a new FS bookkeeper. She will be exporting the count information directly from Skyward and then using an Excel spreadsheet to adjust for GSRP and Heartwood students. The FS bookkeeper will enter the counts into the School Meal Claims website. The counts will be reviewed by the FS director, who will complete the actual submission of the meal claims. The entire process will be audited by the district accountant monthly.