Finding Text
Department of Agriculture, Passed through Minnesota Department of Education
Federal Financial Assistance Listing/CFDA Number 10.553/10.555
Child Nutrition Cluster
Special Tests & Provisions: Verification of Free and Reduced Price Applications
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 245.6a.
Condition – During the course of our engagement, we noted the District did not retain proper support for the
verification process of free and reduced eligibility.
Cause – The District does not have an internal control system designed to review and maintain documentation
for verification of eligibility status.
Effect – A lack of internal controls over special tests and provisions could result in improper use of federal funds
and non‐compliance with the provisions of applicable grant requirements.
Questioned Costs – None reported
Context/Sampling – All District verification selections were selected for testing.
Repeat Finding from Prior Year(s) – No
Recommendation – The District should review internal control procedures to ensure the required verification
process is being completed, ensuring proper eligibility status. 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.