Finding Text
Federal Program: ALN 10.553/10.555 Child Nutrition Cluster
Condition: During the annual verification process, the District failed to properly evaluate the eligibility of a selected application based on household income records provided.
Criteria: By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that have been approved for free and reduced price meals. The District must also make appropriate changes to eligibility statuses and, if applicable, properly conduct a second review of applications.
Cause: One application selected for verification was evaluated using a household’s net income rather than gross income, resulting in the household incorrectly receiving a reduced eligibility status for the 2022-2023 school year.
Effect: The failure to properly evaluate income verifications and make the appropriate changes to eligibility statuses is indicative of a lack of controls over compliance with the provision of the Federal program.
Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance.
Recommendation: We recommend management thoroughly evaluate verified applications and household income records to ensure the information on the applications are accurate and the resulting free and reduced price eligibility statuses are appropriate. Additional training for employees involved in the process may be warranted.
Views of Responsible
Officials and Planned
Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.