Auditors say Colorado's school meal program forfeited $700,000 in federal dollars during four years because the money was never spent.
The audit released to state lawmakers Tuesday said the federal funds were not spent from 2009 to 2012 and that the money could've been used for administrative expenses.
The free and reduced school meals benefit children based on their family's income.
Auditors also found that Colorado's School Lunch and Breakfast Programs didn't take advantage of an opportunity to apply for more than $1.5 million in grants that could've helped child nutrition programs.
The program uses mostly federal funds. Last year, the program spent $175 million, including nearly $171 million in federal dollars.