Audit 297873

2023-004: Material Weakness - Verification of Free and Reduced Price Applications U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – Verification of Free and Reduced Price Applications (NSLP). By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals, unless the District is otherwise exempt from the verification requirement. The verification sample size is based on the total number of approved applications on file on October 1st. The District must perform the verification function in accordance with instructions provided by the state agency. The District must follow up on children whose eligibility status has changed as the result of verification activities to put them in the correct category. Condition – The District did not select or verify a sample of applications that it approved for free and reduced price meals during the District's fiscal year ending June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to conduct verification of free and reduced price applications for the NSLP child nutrition program. Effect or Potential Effect – For the fiscal year ending June 30, 2023, the District may have incorrect eligibility status with regard to households receiving free or reduced price meals. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure that verification of applications for free and reduced price meals are performed by the November 15th due date. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of verification of free and reduced priced applications are met.

2023-004: Material Weakness - Verification of Free and Reduced Price Applications U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – Verification of Free and Reduced Price Applications (NSLP). By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals, unless the District is otherwise exempt from the verification requirement. The verification sample size is based on the total number of approved applications on file on October 1st. The District must perform the verification function in accordance with instructions provided by the state agency. The District must follow up on children whose eligibility status has changed as the result of verification activities to put them in the correct category. Condition – The District did not select or verify a sample of applications that it approved for free and reduced price meals during the District's fiscal year ending June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to conduct verification of free and reduced price applications for the NSLP child nutrition program. Effect or Potential Effect – For the fiscal year ending June 30, 2023, the District may have incorrect eligibility status with regard to households receiving free or reduced price meals. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure that verification of applications for free and reduced price meals are performed by the November 15th due date. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of verification of free and reduced priced applications are met.

2023-004: Material Weakness - Verification of Free and Reduced Price Applications U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – Verification of Free and Reduced Price Applications (NSLP). By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals, unless the District is otherwise exempt from the verification requirement. The verification sample size is based on the total number of approved applications on file on October 1st. The District must perform the verification function in accordance with instructions provided by the state agency. The District must follow up on children whose eligibility status has changed as the result of verification activities to put them in the correct category. Condition – The District did not select or verify a sample of applications that it approved for free and reduced price meals during the District's fiscal year ending June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to conduct verification of free and reduced price applications for the NSLP child nutrition program. Effect or Potential Effect – For the fiscal year ending June 30, 2023, the District may have incorrect eligibility status with regard to households receiving free or reduced price meals. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure that verification of applications for free and reduced price meals are performed by the November 15th due date. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of verification of free and reduced priced applications are met.

2023-005: Material Weakness - Paid Lunch Equity (NSLP) U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – The District is required to ensure that sufficient funds are provided to its nonprofit school food service accounts from lunches served to students not eligible for free or reduced price meals. An entity that charges less for a paid lunch that the difference between the federal reimbursement rate for such a lunch and that for a free lunch is required to comply. The difference in price is known as "equity". There are two ways to meet the requirement: by raising prices charged for paid lunches or through contributions from other non-federal sources. The District is required to perform calculations to determine whether its paid lunch price requires adjustment. Condition – The District did not calculate its average paid lunch pricing requirement for the fiscal year ended June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to ensure sufficient funds are provided to its nonprofit food service accounts. Effect or Potential Effect – The District may not have adjusted its paid lunch price according to the calculations required by paid lunch equity calculation. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure calculation of the average paid lunch is performed timely. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of paid lunch equity are met.

2023-005: Material Weakness - Paid Lunch Equity (NSLP) U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – The District is required to ensure that sufficient funds are provided to its nonprofit school food service accounts from lunches served to students not eligible for free or reduced price meals. An entity that charges less for a paid lunch that the difference between the federal reimbursement rate for such a lunch and that for a free lunch is required to comply. The difference in price is known as "equity". There are two ways to meet the requirement: by raising prices charged for paid lunches or through contributions from other non-federal sources. The District is required to perform calculations to determine whether its paid lunch price requires adjustment. Condition – The District did not calculate its average paid lunch pricing requirement for the fiscal year ended June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to ensure sufficient funds are provided to its nonprofit food service accounts. Effect or Potential Effect – The District may not have adjusted its paid lunch price according to the calculations required by paid lunch equity calculation. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure calculation of the average paid lunch is performed timely. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of paid lunch equity are met.

2023-005: Material Weakness - Paid Lunch Equity (NSLP) U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – The District is required to ensure that sufficient funds are provided to its nonprofit school food service accounts from lunches served to students not eligible for free or reduced price meals. An entity that charges less for a paid lunch that the difference between the federal reimbursement rate for such a lunch and that for a free lunch is required to comply. The difference in price is known as "equity". There are two ways to meet the requirement: by raising prices charged for paid lunches or through contributions from other non-federal sources. The District is required to perform calculations to determine whether its paid lunch price requires adjustment. Condition – The District did not calculate its average paid lunch pricing requirement for the fiscal year ended June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to ensure sufficient funds are provided to its nonprofit food service accounts. Effect or Potential Effect – The District may not have adjusted its paid lunch price according to the calculations required by paid lunch equity calculation. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure calculation of the average paid lunch is performed timely. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of paid lunch equity are met.

2023-004: Material Weakness - Verification of Free and Reduced Price Applications U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – Verification of Free and Reduced Price Applications (NSLP). By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals, unless the District is otherwise exempt from the verification requirement. The verification sample size is based on the total number of approved applications on file on October 1st. The District must perform the verification function in accordance with instructions provided by the state agency. The District must follow up on children whose eligibility status has changed as the result of verification activities to put them in the correct category. Condition – The District did not select or verify a sample of applications that it approved for free and reduced price meals during the District's fiscal year ending June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to conduct verification of free and reduced price applications for the NSLP child nutrition program. Effect or Potential Effect – For the fiscal year ending June 30, 2023, the District may have incorrect eligibility status with regard to households receiving free or reduced price meals. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure that verification of applications for free and reduced price meals are performed by the November 15th due date. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of verification of free and reduced priced applications are met.

2023-004: Material Weakness - Verification of Free and Reduced Price Applications U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – Verification of Free and Reduced Price Applications (NSLP). By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals, unless the District is otherwise exempt from the verification requirement. The verification sample size is based on the total number of approved applications on file on October 1st. The District must perform the verification function in accordance with instructions provided by the state agency. The District must follow up on children whose eligibility status has changed as the result of verification activities to put them in the correct category. Condition – The District did not select or verify a sample of applications that it approved for free and reduced price meals during the District's fiscal year ending June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to conduct verification of free and reduced price applications for the NSLP child nutrition program. Effect or Potential Effect – For the fiscal year ending June 30, 2023, the District may have incorrect eligibility status with regard to households receiving free or reduced price meals. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure that verification of applications for free and reduced price meals are performed by the November 15th due date. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of verification of free and reduced priced applications are met.

2023-004: Material Weakness - Verification of Free and Reduced Price Applications U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – Verification of Free and Reduced Price Applications (NSLP). By November 15th of each school year, the District must verify the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals, unless the District is otherwise exempt from the verification requirement. The verification sample size is based on the total number of approved applications on file on October 1st. The District must perform the verification function in accordance with instructions provided by the state agency. The District must follow up on children whose eligibility status has changed as the result of verification activities to put them in the correct category. Condition – The District did not select or verify a sample of applications that it approved for free and reduced price meals during the District's fiscal year ending June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to conduct verification of free and reduced price applications for the NSLP child nutrition program. Effect or Potential Effect – For the fiscal year ending June 30, 2023, the District may have incorrect eligibility status with regard to households receiving free or reduced price meals. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure that verification of applications for free and reduced price meals are performed by the November 15th due date. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of verification of free and reduced priced applications are met.

2023-005: Material Weakness - Paid Lunch Equity (NSLP) U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – The District is required to ensure that sufficient funds are provided to its nonprofit school food service accounts from lunches served to students not eligible for free or reduced price meals. An entity that charges less for a paid lunch that the difference between the federal reimbursement rate for such a lunch and that for a free lunch is required to comply. The difference in price is known as "equity". There are two ways to meet the requirement: by raising prices charged for paid lunches or through contributions from other non-federal sources. The District is required to perform calculations to determine whether its paid lunch price requires adjustment. Condition – The District did not calculate its average paid lunch pricing requirement for the fiscal year ended June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to ensure sufficient funds are provided to its nonprofit food service accounts. Effect or Potential Effect – The District may not have adjusted its paid lunch price according to the calculations required by paid lunch equity calculation. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure calculation of the average paid lunch is performed timely. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of paid lunch equity are met.

2023-005: Material Weakness - Paid Lunch Equity (NSLP) U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – The District is required to ensure that sufficient funds are provided to its nonprofit school food service accounts from lunches served to students not eligible for free or reduced price meals. An entity that charges less for a paid lunch that the difference between the federal reimbursement rate for such a lunch and that for a free lunch is required to comply. The difference in price is known as "equity". There are two ways to meet the requirement: by raising prices charged for paid lunches or through contributions from other non-federal sources. The District is required to perform calculations to determine whether its paid lunch price requires adjustment. Condition – The District did not calculate its average paid lunch pricing requirement for the fiscal year ended June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to ensure sufficient funds are provided to its nonprofit food service accounts. Effect or Potential Effect – The District may not have adjusted its paid lunch price according to the calculations required by paid lunch equity calculation. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure calculation of the average paid lunch is performed timely. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of paid lunch equity are met.

2023-005: Material Weakness - Paid Lunch Equity (NSLP) U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – The District is required to ensure that sufficient funds are provided to its nonprofit school food service accounts from lunches served to students not eligible for free or reduced price meals. An entity that charges less for a paid lunch that the difference between the federal reimbursement rate for such a lunch and that for a free lunch is required to comply. The difference in price is known as "equity". There are two ways to meet the requirement: by raising prices charged for paid lunches or through contributions from other non-federal sources. The District is required to perform calculations to determine whether its paid lunch price requires adjustment. Condition – The District did not calculate its average paid lunch pricing requirement for the fiscal year ended June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to ensure sufficient funds are provided to its nonprofit food service accounts. Effect or Potential Effect – The District may not have adjusted its paid lunch price according to the calculations required by paid lunch equity calculation. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure calculation of the average paid lunch is performed timely. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of paid lunch equity are met.