CROSSETT SCHOOL DISTRICT

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - AL NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 0201 AUDIT PERIOD - YEAR ENDED JUNE 30, 2021 2021-001. Eligibility Criteria or specific requirement: The U.S. Department of Agriculture Eligibility Manual for School Meals states that determining officials must establish income eligibility for a household based on the household size and the total household gross income compared to the applicable Income Eligibility Guidelines. Condition: An Administrative Review for the District was completed by the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit (DESE, CNU) in March 2021. The review noted two applications were determined incorrectly. As a result of the errors, five students' eligibility status were incorrectly classified, out of 380 students reviewed. Cause: The District did not provide proper management oversight to ensure compliance with applicable regulations. Effect: Free and reduced price meal applications were not classified properly. Context: Results of an Administrative Review by the DESE, CNU. Recommendation: The District should exercise greater care in establishing eligibility for applicants. Views of responsible officials: The Business Manager conducted training sessions on March 31, 2021, April 27, 2021, May 27, 2021 and June 28, 2021 with the Child Nutrition Director and Child Nutrition Secretary regarding application approval. The following link is a tool that will be utilized by the Child Nutrition Department: https://reports.educateiowa.gov/ICAVES/Home/Calculator. The Child Nutrition Director, also talked to a representative of the Arkansas Department of Education, Child Nutrition Unit. Workshops have been completed.

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER - CDFA NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 0201 AUDIT PERIOD - YEAR END JUNE 30, 2020 2020-001. 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. The entity's determining official must review each approved application selected for verification to ensure the initial determination status was accurate. Condition: The District did not accurately confirm the eligibility status for free and reduced price meals for two applicants selected in the verification process. Based on income guidelines established by the USDA, the applicants should have been reclassified from free meals to reduced price meals. The amount of excess reimbursement could not be readily determined. Cause: District personnel did not properly review the supporting documentation provided during the verification process to determine eligibility. Effect or potential effect: The District received excess reimbursements for meals served to the applicable students. Context: Three applications selected for verification from a population of nine were examined for proper verification procedures for free and reduced price meal status. Recommendation: The District should exercise greater care in inspecting the documentation submitted by the applicants during the verification process regarding eligibility for free and reduced price meals and contact the Arkansas Division of Elementary and Secondary Education, Child Nutrition Unit for resolution of this matter. Views of responsible officials: The Business Manager will conduct a training session with the Child Nutrition Director and Child Nutrition Secretary regarding verification procedures and supporting documentation. They will be trained on how to compare free and reduced financial documentation with the verification financial information. Training will also include information on the two different forms when a variance is found. We will also contact Arkansas Department of Education Child Nutrition Unit for resolution in this matter.

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER- CDFA NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 0201 AUDIT PERIOD - YEAR END JUNE 30, 2019 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 for free and reduced price meals. As part of this process, the District is required to follow standard sampling procedures and maintain the documentation for audit. Condition: We obtained a review of the District?s Verification Collection Report performed by the Arkansas Department of Education, Child Nutrition Unit (ADE, CNU), the review disclosed the District did not follow standard sampling procedures when personnel verified free and reduced price meal applications. The District only verified eight instead of nine applications required by standard sampling procedures. The District was instructed by ADE, CNU to verify an additional application. During the course of our audit, the District was unable to provide supporting verification documentation for eight of the nine applications. Cause: District personnel did not properly monitor the verification procedures to ensure the correct number of applications were verified and supporting documentation was maintained. Effect or potential effect: The District did not verify enough applications as required by sampling procedures and documentation supporting the verification was not maintained. Context: Examination of verification procedures and supporting documentation from ADE CNU. Recommendation: The District should implement procedures to ensure that standard sampling procedures are followed and supporting documentation is maintained. Views of responsible officials: The District will implement procedures to ensure that standard sampling procedures are followed and supporting documentation is maintained.

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