Finding Text
U.S. Department of Education
Passed-Through Entity: New York State Education Department
Finding Reference: 2023-002
Child Nutrition Cluster:
National School Lunch Program (Assistance Listing # 10.555)
School Breakfast Program (Assistance Listing # 10.553)
Summer Food Service Program for Children (Assistance Listing # 10.559)
Compliance Requirement: Eligibility
Criteria
Children from households with incomes at or below 130 percent of the Federal poverty level are
eligible to receive meals or milk free under the School Nutrition Programs. Children from households
with incomes above 130 percent but at or below 185 percent of the Federal poverty level are eligible
to receive reduced price meals. Persons from households with incomes exceeding 185 percent of
the poverty level pay the full price (7 CFR sections 245.2, 245.3, and 245.6; section 9(b)(1) of the
NSLA (42 USC 1758 (b)(1)); sections 3(a)(6) and 4(e) of the CNA (42 USC 1772(a)(6) and
1773(e))).
Condition
We haphazardly sampled 40 students receiving benefits under the Child Nutrition Cluster program.
We noted two students received free lunch benefits who should have received reduced lunch
benefits. In this instance, income was incorrectly calculated when determining eligibility, causing an
incorrect certification. Additionally, we noted that one student was denied lunch benefits but should
have received free lunch benefits. Known and likely questioned costs were determined not to be
material or exceed $25,000. The sampling methodology used was not statistically valid.
Cause
Adequate oversight of the eligibility determination process was not in place in order to identify
mistakes in determining eligibility.
Effect
Without demonstrable, documented controls supporting compliance with Child Nutrition compliance
standards, compliance with the requirements may not be assured.
Recommendation
We recommend that the School District institute additional procedures to ensure that eligibility
determinations are made correctly. We also recommend that the School District ensures that the
household number and income be compared to the National Income Eligibility Guidelines to
calculate whether the student qualifies for free or reduced lunch.
View of Responsible Officials
The School District will institute additional procedures to ensure that eligibility determinations are
reviewed and accurate.