Finding Text
Finding Number: 2023-001
Repeat Finding: No
Program Name/Assistance Listing Title: Child Nutrition Cluster
Assistance Listing Numbers: 10.553, 10.555, 10.559
Federal Agency: U.S. Department of Agriculture
Federal Award Numbers: 7AZ300AZ3, 6AZ300400
Pass-Through Agency: Arizona Department of Education
Questioned Costs: N/A
Type of Finding: Noncompliance, Significant Deficiency
Compliance Requirement: Reporting
Criteria
7 CFR §210.8 requires the District to establish internal controls which ensure the accuracy of meal counts prior to the submission of the monthly claim for reimbursement. 7 CFR §210.8 also requires the District to submit reimbursement claims no later than 60 days following the last day of the full month covered by the claim.
Condition
The District was not in compliance with 7 CFR §210.8.
Cause
The District experienced turnover in the position responsible for the monthly reimbursement claim submission process. Additionally, the monthly claims were not thoroughly reviewed prior to submission.
Effect
The District did not fully comply with reporting requirements for the Child Nutrition Cluster.
Context
The District’s March 2023 reimbursement claim submitted did not agree to supporting reports. As a result, the District was under reimbursed for 20,981 of meals during March 2023, which equates to $37,774. Additionally, the January 2023 and March 2023 claims were submitted for reimbursement on April 3, 2023 and June 5, 2023 respectively, which are outside of the 60 day required window for submission.
The sample was not intended to be, and was not, a statistically valid sample.
Findings and Questioned Costs Related to Federal Awards
Finding Number: 2023-001
Recommendation
The District should ensure monthly counts are supported by documentation and agree to reimbursement claims prior to submission to Arizona Department of Education. The District should also ensure the reimbursement claim is submitted within the required time period after month end.
Views of Responsible Officials
See Corrective Action Plan.