Finding Text
50000 – Child Nutrition Cluster (Material Weakness, Material Noncompliance)
Federal Program Affected
Federal Agency: U.S. Department of Agriculture
Pass-Through Entity: California Department of Education
Federal Program: Child Nutrition Cluster
Assistance Listing Number: 10.553, 10.555
Compliance Requirement: Eligibility
Criteria or Specific Requirement
The District is reimbursed for meals served to students eligible for free or reduced pricing. The reimbursement rates depend on how the student is classified. (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 CAN (42 USC 1772(a)(6) and 1773(e))).
A child’s eligibility for free or reduced priced meals under a Child Nutrition Cluster program may be established by the submission of an annual application. Children belonging to households meeting income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced priced school meals pay the full price, set by the District, for their meals. (7 CFR sections 225.15(f), 245.1(a), and 245.3(c); definition of “subsidized lunch (paid lunch)” at 7 CFR section 210.2).
Condition
Eight students were noted to be classified as being free; however, the District was unable to provide supporting documentation for these students.
Questioned Costs
Questioned costs associated with this condition was identified as $4,009, which represents the excess reimbursement received by the District that is associated with the unsupported audit samples. Likely questioned costs are $27,565.
Context
We selected a sample of 60 and eight exceptions were noted.
Effect
The monthly meal claims were inaccurately prepared.
Cause
The District lacked sufficient procedures for maintaining income verification forms or direct certification information, leading to a deficiency in ensuring that students meeting the income eligibility requirements were retained for audit support.
Repeat Finding
No.
Recommendation
Personnel responsible for compliance in this area should ensure that all student records are updated timely based on the review of income eligibility forms or direct certification information.