Audit 13665

FY End
2023-06-30
Total Expended
$1.08M
Findings
24
Programs
10
Year: 2023 Accepted: 2024-01-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
10023 2023-001 Material Weakness - I
10024 2023-002 Material Weakness - EN
10025 2023-001 Material Weakness - I
10026 2023-002 Material Weakness - EN
10027 2023-001 Material Weakness - I
10028 2023-002 Material Weakness - EN
10029 2023-001 Material Weakness - I
10030 2023-002 Material Weakness - EN
10031 2023-001 Material Weakness - I
10032 2023-002 Material Weakness - EN
10033 2023-001 Material Weakness - I
10034 2023-002 Material Weakness - EN
586465 2023-001 Material Weakness - I
586466 2023-002 Material Weakness - EN
586467 2023-001 Material Weakness - I
586468 2023-002 Material Weakness - EN
586469 2023-001 Material Weakness - I
586470 2023-002 Material Weakness - EN
586471 2023-001 Material Weakness - I
586472 2023-002 Material Weakness - EN
586473 2023-001 Material Weakness - I
586474 2023-002 Material Weakness - EN
586475 2023-001 Material Weakness - I
586476 2023-002 Material Weakness - EN

Contacts

Name Title Type
XVSCN61X1KA5 Mr. Rob Wright Auditee
6188338421 Jeffrey C. Stroder, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Anna Jonesboro CHSD 81 and is presented on the modified cash basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not elect to use the 10% de minimis cosst rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Anna Jonesboro CHSD 81 and is presented on the modified cash basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Indirect Facilities & Administration Costs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Anna Jonesboro CHSD 81 and is presented on the modified cash basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not elect to use the 10% de minimis cosst rate. The auditee elected not to use the 10% de minimis cost rate.
Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Anna Jonesboro CHSD 81 and is presented on the modified cash basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not elect to use the 10% de minimis cosst rate. Of the federal expenditures presented in the schedule, Anna Jonesboro CHSD 81 provided no federal awards to subrecipients.
Title: Non-Cash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Anna Jonesboro CHSD 81 and is presented on the modified cash basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not elect to use the 10% de minimis cosst rate. The following amounts were expended in the form of non-cash assistance by Anna Jonesboro CHSD 81 and should be included in the Schedule of Expenditures of Federal Awards: Non-Cash Commodities (CFDA 10.555) $14,314.

Finding Details

Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.
Criteria: According to 2 CFR Section 180.300, when a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity is not suspended, debarred or otherwise excluded. Condition: The District had transactions in excess of $25,000 with one vendor in which they did not verify that the entity is not suspended, debarred or otherwise excluded. Questioned Costs: None. Context: Payments to the vendor totaled $46,229 for the year ended June 30, 2023. Effect: The District was at risk of making material payments to a vendor who is not allowed to do business with the federal government. There was no noncompliance, but there was no internal control in place to prevent noncompliance. Cause: The District was no aware of this requirement. Recommendation: We recommend the District check the Excluded Parties List System or collect certifications from the entity for any vendor in which the District expects to spend more than $25,000 of federal grant funds for the year. Management's Response: We were not aware of this requirement, but we will ensure that we comply going forward.
Criteria: Prior to December 15 of each year, the school must verify the current free and reduced price eligibility of households selected from a sample of applicants that have already been approved. Applications considered error prone must be slected first for verification. Condition: No verification testing was performed. Applicants were selected, but no income documentation was submitted by the household. Those selected applicants were not designated as being selected for verification, and subsequently were not changed to receiving paid lunches from free or reduced lunches. No error prone applications were marked. One applicant's initial application noted the student qualified for reduced meals, but according to the USDA income guidelines, they actually qualified for free meals. Questioned Costs: None. Context: Expenditures from the Child Nutrition Cluster totaled $153,044 at June 30, 2023. In addition, eligibility for several other grants is based on the number of students eligible for free and reduced breakfasts and lunches. Effect: The District could provide benefits to ineligible children or provide insufficient benefits to eligible children. Cause: The District had ineffective controls in place for the eligibility determination of free and reduced applications. Recommendation: We recommend the District follow USDA guidelines for verification testing and income eligibility guidelines when making eligibility determinations of free and reduced breakfasts and lunches. Management's Response: The District will ensure the Food Service Director is completing the processes accurately and timely going forward.