Hollidaysburg Area School District

Program: National School Lunch Program - CFOA #10.553,10.555 Statement of Condition One of the recipients receiving free lunch/breakfast had too much household income, and therefore should not have been receiving meals under the free or reduced-price status. This is a repeat finding (2019-001) from the prior year. Questioned Costs $359 Criteria-Only those recipients whose household income falls within the guidelines per the Federal Register may receive free or reduced meals under the National School Lunch Program. In this case, the recipient did not qualify to receive free or reduced-price meals. Cause-The recipient's application included an individual income tax return which revealed non-taxable Social Security income. The School District did not notice this source of income and therefore did not include it when determining the applicant's eligibility. Effect-The recipient should have paid for meals at the full rate; therefore, the claims submitted to the Department of Education were reimbursed at the free rate instead of the paid-lunch rate. Context-Hollidaysburg Area School District had 141 applications for free/reduced meals, of which we tested 60, finding 1 with an improper determination. Recommendation-We recommend the Hollidaysburg Area School District implement a second level of review when comparing applicants' income to the thresholds provided by the Federal Register.

Program National School Lunch Program - CFDA #10.553,10.555 Statement of Condition One of the recipients receiving free lunch/breakfast had too much household income, and instead should have been receiving meals under the reduced status. Questioned Costs Unknown Criteria Only those recipients whose household income falls within the guidelines per the Federal Register may receive free or reduced meals under the National School Lunch Program. In this case, the recipient only qualified for reduced-price meals. Cause The application was unclear and additional clarification was not requested. Effect The recipient should have paid for meals at the reduced rate; therefore, claims submitted to the Department of Education were reimbursed at the free rate instead of the reduced rate. Context Hollidaysburg Area School District had 181 applications for free/reduced meals, of which we tested 40, finding 1 with an improper determination. Recommendation We recommend the Hollidaysburg Area School District implement a second level of review when comparing applicants' income to the thresholds provided by the Federal Register.

Program National School Lunch Program - CFDA #1 0.553, 10.555 Statement of Condition One of the recipient applications that Hollidaysburg Area School District tested under the eligibility verification process did not qualify as an error-prone application. Questioned Costs Unknown Criteria The Hollidaysburg Area School District was required to select applications considered error-prone for income verification. "Error-prone" is defined as an application having income within $100/month or $1,200/year of the income eligibility thresholds qualifying for either free or reduced meals. Cause The application testing selection procedures did not meet the required criteria. Effect The verification process did not conform to the required format of selecting error-prone applications. Context The Hollidaysburg Area School District was required to verify the household income of two applications considered to be error-prone. We tested both of the applications, of which one of them was outside the scope of being considered error-prone. Recommendation We recommend the Hollidaysburg Area School District implement a second level of review when performing the annual income verification process.

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