Finding 963533 (2023-004)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299411
Organization: Isd # 682 Roseau (MN)

AI Summary

  • Core Issue: The District failed to verify 3% of free and reduced applications by the November 15 deadline, leading to inaccuracies in eligibility determinations.
  • Impacted Requirements: Non-compliance with Uniform Guidance regarding verification of free and reduced price meal applications.
  • Recommended Follow-Up: The District should establish and enforce policies to ensure timely and accurate verification of applications moving forward.

Finding Text

Federal Program Child Nutrition Cluster (AL 10.553 & 10.555) Special Tests & Provisions Criteria Per Uniform Guidance, by November 15th of each school year, the local education agency must verify the current free and reduced price eligibility of households from a sample of applications that it has approved for free and reduced price meals. Furthermore, the District is required to test the lesser of 3% or 3,000 of the approval applications on file as of October 1, from error-prone applications. Finally, a system of internal controls requires a process that would ensure all information listed in the District financial system to be accurate. Condition We noted that the District did not test 3% of all free and reduced applications. We also noted the verification was not done by the due date and that in a population of two, we found an exception in one of them. Questioned Costs None Context The District did not verify the correct amount of free and reduced applications on hand as of October 1st. The District also did not prepare this verification by the November 15th due date. Finally, we noted that one of the two applications tested, the student was receiving a benefit they did not qualify for. Cause The District does not have controls in place to ensure the verification process is done by the due date, the required amount of verifications are done, and that students receive only the benefit they qualify for. Effect The District did not verify applications by the required due date, they also did not test the lessor of 3% or 3,000, and a student received a benefit that they were not eligible for. Repeat Finding No. Recommendation The District should implement policies and procedures for verifying free and reduced applications. Corrective Action Taken The District agrees with the recommendation and will review its policies and procedures.

Categories

School Nutrition Programs Special Tests & Provisions Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 387086 2023-003
    Material Weakness Repeat
  • 387087 2023-003
    Material Weakness Repeat
  • 387088 2023-003
    Material Weakness Repeat
  • 387089 2023-003
    Material Weakness Repeat
  • 387090 2023-004
    Material Weakness
  • 387091 2023-004
    Material Weakness
  • 387092 2023-004
    Material Weakness
  • 387093 2023-004
    Material Weakness
  • 387094 2023-005
    Material Weakness
  • 387095 2023-005
    Material Weakness
  • 387096 2023-005
    Material Weakness
  • 387097 2023-005
    Material Weakness
  • 963528 2023-003
    Material Weakness Repeat
  • 963529 2023-003
    Material Weakness Repeat
  • 963530 2023-003
    Material Weakness Repeat
  • 963531 2023-003
    Material Weakness Repeat
  • 963532 2023-004
    Material Weakness
  • 963534 2023-004
    Material Weakness
  • 963535 2023-004
    Material Weakness
  • 963536 2023-005
    Material Weakness
  • 963537 2023-005
    Material Weakness
  • 963538 2023-005
    Material Weakness
  • 963539 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $125,146
10.553 School Breakfast Program $50,426
84.027 Special Education_grants to States $46,569
10.555 National School Lunch Program $42,370
84.358 Rural Education $30,972
21.027 Coronavirus State and Local Fiscal Recovery Funds $30,432
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $27,900
84.173 Special Education_preschool Grants $16,907
84.425 Education Stabilization Fund $14,579
84.424 Student Support and Academic Enrichment Program $11,392
84.181 Special Education-Grants for Infants and Families $7,121