HARMONY GROVE SCHOOL DISTRICT

U.S. DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER- CFDA NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 5205 AUDIT PERIOD- YEAR ENDED JUNE 30, 2020 Criteria or specific requirement: The District is required to process applications submitted for free and reduced price meals for the District?s child nutrition program and classify them within the timeline specified in accordance with federal guidelines established by the U.S. Department of Agriculture. Applications must include the required information to be considered for free and reduced price meals and the District must notify the household of the child?s eligibility within 10 operating days of receiving the application. Condition: During our examination of 17 free and reduced meal applications, we noted two applications that were not reviewed timely which resulted in the District incorrectly classifying the applications as free eligibility. The correct classification was reduced price and paid meals, respectively, which the District updated in January and February of 2020. The amount of excess reimbursement for meal claims for the respective students could not be readily determined. Cause: District personnel did not properly monitor the approval process to ensure applications were properly classified. Effect or potential effect: The District did not ensure all applications were properly classified. Context: Examination of 17 free and reduced price meal applications for completeness and proper classification from a total population of 168 approved applications. Recommendation: The District should establish controls in reviewing applications and determining proper classification of applicants are done in a timely manner and should contact Arkansas Department of Education, Child Nutrition Unit for resolution of this matter. Views of responsible officials: The District will establish controls in reviewing applications and determining proper classification of applicants are done in a timely manner and we have been in contact with ADE-Child Nutrition.

U.S DEPARTMENT OF AGRICULTURE PASSED THROUGH ARKANSAS DEPARTMENT OF EDUCATION CHILD NUTRITION CLUSTER- CFDA NUMBERS 10.553 AND 10.555 PASS-THROUGH NUMBER 5205 AUDIT PERIOD- YEAR ENDED JUNE 30, 2020 Criteria or specific requirement: The U.S. Department of Agriculture (USDA) guidelines requires an entity to perform verification procedures for a specific number of applicants for free and reduced price meals. As part of this process, the applicant?s household must provide the District written evidence confirming eligibility. Condition: The District selected five free and reduced price meal applications for verification purposes. We selected one verified application for audit inspection, however, the District was unable to provide the supporting documentation submitted by the household applicant. Cause: District personnel did not properly monitor the verification procedures to ensure that proper documentation was retained for audit inspection. Effect or potential effect: Classification of applicants' free and reduced price meal status could not be substantiated. Context: Examination of one application out of a total population of five free and reduced price meal applications for verification. Recommendation: The District should implement procedures to ensure proper documentation is received during the verification process and maintained. Views of responsible officials: The District will implement procedures to ensure proper documentation is received during the verification process and maintained.