UNIFIED SCHOOL DISTRICT #446Local Government

Finding 2025-001 – Reporting Identification of the federal program: U.S. DEPARTMENT OF AGRICULTURE Child USDA Nutrition Cluster School Breakfast Program ALN 10.553 National School Lunch Program ALN 10.555 Summer Food Service Program for Children ALN 10.559 Fresh Fruits and Vegetables ALN 10.582 Criteria: 7 CFR section 210.8 states that monthly claims for meal reimbursement includes only the number of free, reduce price and paid lunches served on any day of operation to children currently eligible for such lunches. Condition: During our testing of meal reporting, we tested two months of meal report claims submitted to the State and traced to individual count sheets per school. It was discovered that on one day, eligible student meals were overreported on the claim for reimbursement. Cause: The District had picked up an incorrect number from a report and the error was not detected. Effect or Potential Effect: The breakdown in this area could adversely affect the amount of reimbursement received by the school as eligible meals were overreported for reimbursement. Questioned Costs: None Context: All eligible student meals are allowed to be claimed for reimbursement and by misreporting the meals due to using incorrect numbers from reports, the District requested reimbursement for 104 more meals than was actually served. Repeat Finding: No Recommendation: Policies and procedures should be written to provide internal control over meal reporting. We recommend the District establish a review process, such as having another individual review count sheets and compare them to the number of meals submitted, to ensure all meals submitted for reimbursement are for the correct number of meals. Views of responsible officials: Management is in agreement and will implement a corrective action plan.

Finding 2023-001 –Verification Federal Programs: U.S. Department of Agriculture Child USDA Nutrition Cluster School Breakfast Program CFDA No. 10.553 National School Lunch Program CFDA No. 10.555 Summer Food Service Program for Children CFDA No. 10.559 Fresh Fruits and Vegetables CFDA No. 10.582 Compliance requirement: 7 CFR section 245.6 states that the local educational agency must use the income information provided by the household on the application to calculate the household’s total current income. Condition: During our testing of verification of income of households sampled during the year, we tested all households chosen for verification. During this testing, we noted households whose net income was used to calculate their eligibility instead of their gross income. Cause: The employee verifying the income incorrectly used net income instead of gross income when calculating income for eligibility guidelines. Effect: The breakdown of internal controls in this area could adversely affect households by allowing them to receive free or reduced lunches that they are ineligible for. Questioned Costs: None Context: Households determination of whether their students will be eligible for free or reduced lunch is based on their gross income calculated based on the frequency of payment from the income verification support provided. By incorrectly using net income, households were allowed to continue receiving free or reduced lunch instead of having to pay for lunches based on income guidelines. Recommendation: Procedures should be implemented requiring that all income should be verified using proper documentation and verification results review by at least two or more qualified individuals. Views of responsible officials: Management is in agreement and will implement a corrective action plan.

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