Finding Text
Department of Agriculture, Passed through Minnesota Department of Education
Federal Financial Assistance Listing/CFDA Number 10.553/10.555
Child Nutrition Cluster
Eligibility
Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria – A good system of internal control includes an adequate system for ensuring all program participants
are eligible under the related federal grant in accordance with 7 CFR 245.3 – 7 CFR 245.6.
Condition – During the course of our engagement, we noted ten instances where documentation of program
eligibility was not maintained.
Cause – The District does not have an internal control system designed to review and maintain documentation
for eligibility of program participants.
Effect – A lack of internal controls over eligibility could result in improper use of federal funds and noncompliance
with the provisions of applicable grant requirements.
Questioned Costs – None reported
Context/Sampling – A non‐statistical sample of 60 transactions out of 508 total participants were selected for
testing.
Repeat Finding from Prior Year(s) – No
Recommendation – The District should review internal control procedures to ensure participant applications are
being completed and properly reviewed for program eligibility. Supporting documentation should then be
maintained once the review is documented and performed.
Views of Responsible Officials – There is no disagreement with the audit finding.