Finding Text
U.S. DEPARTMENT OF AGRICULTURE
PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION
CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 and 10.555
PASS-THROUGH NUMBER 0101
AUDIT PERIOD - YEAR ENDED JUNE 30, 2023
2023-001. Eligibility
Criteria or specific requirement: The U.S. Department of Agriculture (USDA) guidelines require an entity to perform verification procedures for a specific number of applicants approved for free and reduced price meals. As part of this process, the applicant’s household must provide the District with written evidence confirming eligibility.
Condition: An Administrative Review for DeWitt School District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in January 2023. The review noted the following issues with the verification process:
• The District pulled the incorrect number of applications for verification.
• Households who were selected for verification were notified of selection over the phone instead of in writing.
• Applications pulled for verification were not confirmed by the confirming official.
• Six out of nine applications chosen for verification had missing or incorrect income documents submitted by the households.
Subsequently, one application that was selected for verification testing was not reclassified from a free status to a reduced price status as required by the documentation submitted in the verification process. The amount of excess reimbursement could not be readily determined. In addition, the verification tracker form was not completed for the applications verified.
Cause: District personnel did not properly review the supporting documentation provided during the verification process to determine eligibility.
Effect or potential effect: Acceptable documentation was not obtained and income was not properly calculated to substantiate income used to determine proper classification of meal applications during the verification process.
Context: Results of an Administrative Review by the DESE, CNU and audit examination of the verified applicants.
Recommendation: The District should follow the guidelines outlined by the USDA during the verification process.
Identification as a repeat finding: No
Views of responsible officials: The following corrective actions have been put into place:
• The District will follow all guidelines outlined by the USDA during the verification process.
• A change in personnel was made.
• Child nutrition specialists from the Department of Education Child Nutrition Unit have provided technical assistance to District employees on the verification process. This technical assistance included assistance in reviewing the correct number of applications, the process in which the confirming official confirms the applications, the correct documents that may be submitted for income documentation, the correct use of tracker forms, and the procedures for reclassifying applications after the verification process. This technical assistance was given in the spring semester this school year and will be repeated next year to ensure that the guidelines are followed.
• District personnel will properly review the supporting documentation provided during the verification process which will include ensuring the correct number of applications are verified, that the confirming official confirms the applications, that the correct documentation of income is received, that the tracker forms are used correctly, and that the applications are reclassified after the verification process is completed, if necessary. This will be a multi layered review that will include the cafeteria managers, child nutrition director, director of federal programs, and superintendent.