Finding Text
2023-002 – Eligibility
Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Eligibility).
Federal program(s)
U.S. Department of Agriculture -
Child Nutrition Cluster (ALN 10.CNC); Passed through MDE; All project numbers
Criteria. Recipients of federal awards are responsible for compliance with various requirements in accordance with the Uniform Guidance and the award agreement. The Child Nutrition Cluster requires that students receiving free or reduced rate meals meet certain income guidelines, unless they are categorically eligible by being homeless, a migrant, or a runaway. Eligibility determinations should be supported by an application or other documentation.
Condition. In our sample of 40 applications from all students receiving free or reduced cost meals during the year, we noted one instance in which the student's eligibility determination was not supported by a properly completed application or direct certification.
Cause. This condition appears to be the result of inadequate document retention and organization policies.
Effect. As a result of this condition, the District requested grant reimbursements without the proper support.
Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no unallowable costs were identified.
Recommendation. We recommend that management ensures all documentation is retained and properly supports the determination for all free and reduced lunch applications and direct certification lists.
View of Responsible Officials. The Food Services Director will verify that the documentation supports the determination for all free and reduced lunch applications and direct certification lists. All documentation will be kept on file in the Food Services Director's Office for no less than the current fiscal year plus three years as required by the Michigan Department of Education.
Responsible Official. Food Service Director and Business Manager
Estimated Completion Date. June 30, 2024