Audit 3275

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Any child enrolled in a participating school and belonging to a household meeting nationwide income eligibility requirements may receive meals at no charge or at a reduced price. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of eligibility requirements, we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow compliance eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: 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. Condition and Context: Eligibility standards required by 7 CFR sections 225.15(f), 245.1(a), and 245.3(c) were not followed. During our testing of special tests and provisions we inquired of the client about verification procedures performed and they explained applications were submitted by families through PrimeroEdge. The District began the verification process by selecting households to be verified using PrimeroEdge and letters were generated and mailed out; however, the process was not completed and any verification records received were not kept. Cause: Turnover in the Business Manager position caused a breakdown in internal controls related to income verification. Effect: Failure to follow eligibility requirements could result in loss of federal funding. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all special tests and provisions to ensure compliance with those requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.

Federal Agency: U.S. Department of Education, passed through the State of Alaska, Department of Education and Early Development Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559, and 10.582 Award Number: None (10.553); None and FD 23.KGSD.01 (10.555); None (10.559), and FF 23.KGSD.01 and FF 23.KGSD.02 (10.582) Award Year: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The District was unable to provide adequate supporting documentation showing that contractors were selected using an adequate procurement process. Condition and Context: Procurement standards required by 2 CFR 200.318 were not followed. During our testing of procurement, we determined that management did not conduct an annual cost study or formal procurement process for food and supplies to be used in the food service program. Cause: Lack of internal control over procurement requirements. Effect: Failure to follow 2 CRF 200.318 could result in loss of federal funding. Also, the District risks overpaying for food and supplies by not following procurement standards. Questioned Costs: None noted. Repeat finding: This is not a repeat finding, as such it appears to be an isolated instance. Recommendation: We recommend that management complies with all procurement requirements applicable to 2 CFR 200.318 to ensure the District’s compliance with such requirements. Management Response: Management agrees with this finding, see Corrective Action Plan.