Audit 346942

Finding 2024-003 Reporting – Material Noncompliance and Material Weakness in Internal Control Over Compliance Identification of the Federal Program ALN 84.041- Impact Aid – U.S. Department of Education - Direct Program 2024 Criteria or Specific Requirement The Uniform Guidance in 2 CFR Section 200.303, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and the terms and conditions of the federal award. Application for Impact Aid – Section 7003 (OMB No. 1810-0687) – Each year an LEA must submit this application, which provides the following information: counts of federally connected children in various categories, membership and average daily attendance data, and information on expenditures for children with disabilities. Condition The District failed to retain source check documentation to support the student count and information certification by federal representatives. Cause Internal control process for retention of the source documentation was not followed. Effect or potential effect We were unable to confirm the completeness and verification that the students that were reported for the program were federally connected children. Questioned Costs Questioned costs are not determinable based on the information available. Context For the testwork for reporting over impact aid we requested source check documentation for the students that were reported federally connected children and the District was not able to provide any evidence. Identification as a repeat finding Not a repeat finding. Recommendation We recommend that the District comply with the requirements of CFR section 200.313 and establish documentation retention policy and maintain records in accordance with the uniform guidance. Views of responsible officials Management agrees with this finding. Steps will be taken to correct the retention of source check documentation process and enhance internal controls to prevent similar occurrences in the future.

Finding 2024-004 Reporting – Noncompliance and Significant Deficiency in Internal Control Over Compliance Identification of the Federal Program ALN 10.553 and 10.555 – School Breakfast Program and National School Lunch Program Child Nutrition Cluster – U.S. Department of Agriculture passed through the State of Alaska Department of Education and Early Development, pass through entity identification numbers 01701 and FD 24.GCSD.01. Year 2024 Criteria or Specific Requirement The Uniform Guidance in 2 CFR Section 200.303, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and the terms and conditions of the federal award. Claims for Reimbursement-SFAs and sponsors must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15(c)). Condition One report was submitted after the due dates as indicated in the grant and compliance guidelines. Cause The Districts internal controls over reporting are not designed to appropriately ensure timely reporting. Effect or potential effect The District was not in compliance with the grant requirements. Questioned Costs None. Context We selected 4 monthly reimbursement reports for testwork and noted one report was submitted past the due date. Identification as a repeat finding Not a repeat finding. Recommendation We recommend that management review report due dates and ensure that accurate reports are submitted before they are due. Views of responsible officials Management agrees with this finding. Steps will be taken to correct the reporting process and enhance internal controls to prevent similar occurrences in the future.

Finding 2024-004 Reporting – Noncompliance and Significant Deficiency in Internal Control Over Compliance Identification of the Federal Program ALN 10.553 and 10.555 – School Breakfast Program and National School Lunch Program Child Nutrition Cluster – U.S. Department of Agriculture passed through the State of Alaska Department of Education and Early Development, pass through entity identification numbers 01701 and FD 24.GCSD.01. Year 2024 Criteria or Specific Requirement The Uniform Guidance in 2 CFR Section 200.303, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and the terms and conditions of the federal award. Claims for Reimbursement-SFAs and sponsors must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15(c)). Condition One report was submitted after the due dates as indicated in the grant and compliance guidelines. Cause The Districts internal controls over reporting are not designed to appropriately ensure timely reporting. Effect or potential effect The District was not in compliance with the grant requirements. Questioned Costs None. Context We selected 4 monthly reimbursement reports for testwork and noted one report was submitted past the due date. Identification as a repeat finding Not a repeat finding. Recommendation We recommend that management review report due dates and ensure that accurate reports are submitted before they are due. Views of responsible officials Management agrees with this finding. Steps will be taken to correct the reporting process and enhance internal controls to prevent similar occurrences in the future.

Finding 2024-003 Reporting – Material Noncompliance and Material Weakness in Internal Control Over Compliance Identification of the Federal Program ALN 84.041- Impact Aid – U.S. Department of Education - Direct Program 2024 Criteria or Specific Requirement The Uniform Guidance in 2 CFR Section 200.303, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and the terms and conditions of the federal award. Application for Impact Aid – Section 7003 (OMB No. 1810-0687) – Each year an LEA must submit this application, which provides the following information: counts of federally connected children in various categories, membership and average daily attendance data, and information on expenditures for children with disabilities. Condition The District failed to retain source check documentation to support the student count and information certification by federal representatives. Cause Internal control process for retention of the source documentation was not followed. Effect or potential effect We were unable to confirm the completeness and verification that the students that were reported for the program were federally connected children. Questioned Costs Questioned costs are not determinable based on the information available. Context For the testwork for reporting over impact aid we requested source check documentation for the students that were reported federally connected children and the District was not able to provide any evidence. Identification as a repeat finding Not a repeat finding. Recommendation We recommend that the District comply with the requirements of CFR section 200.313 and establish documentation retention policy and maintain records in accordance with the uniform guidance. Views of responsible officials Management agrees with this finding. Steps will be taken to correct the retention of source check documentation process and enhance internal controls to prevent similar occurrences in the future.

Finding 2024-004 Reporting – Noncompliance and Significant Deficiency in Internal Control Over Compliance Identification of the Federal Program ALN 10.553 and 10.555 – School Breakfast Program and National School Lunch Program Child Nutrition Cluster – U.S. Department of Agriculture passed through the State of Alaska Department of Education and Early Development, pass through entity identification numbers 01701 and FD 24.GCSD.01. Year 2024 Criteria or Specific Requirement The Uniform Guidance in 2 CFR Section 200.303, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and the terms and conditions of the federal award. Claims for Reimbursement-SFAs and sponsors must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15(c)). Condition One report was submitted after the due dates as indicated in the grant and compliance guidelines. Cause The Districts internal controls over reporting are not designed to appropriately ensure timely reporting. Effect or potential effect The District was not in compliance with the grant requirements. Questioned Costs None. Context We selected 4 monthly reimbursement reports for testwork and noted one report was submitted past the due date. Identification as a repeat finding Not a repeat finding. Recommendation We recommend that management review report due dates and ensure that accurate reports are submitted before they are due. Views of responsible officials Management agrees with this finding. Steps will be taken to correct the reporting process and enhance internal controls to prevent similar occurrences in the future.

Finding 2024-004 Reporting – Noncompliance and Significant Deficiency in Internal Control Over Compliance Identification of the Federal Program ALN 10.553 and 10.555 – School Breakfast Program and National School Lunch Program Child Nutrition Cluster – U.S. Department of Agriculture passed through the State of Alaska Department of Education and Early Development, pass through entity identification numbers 01701 and FD 24.GCSD.01. Year 2024 Criteria or Specific Requirement The Uniform Guidance in 2 CFR Section 200.303, Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and the terms and conditions of the federal award. Claims for Reimbursement-SFAs and sponsors must submit monthly claims for reimbursement for meals and snacks served to eligible students within 60 days following the last day of the month covered by the claim (7 CFR sections 210.8, 220.11, 215.10, and 225.15(c)). Condition One report was submitted after the due dates as indicated in the grant and compliance guidelines. Cause The Districts internal controls over reporting are not designed to appropriately ensure timely reporting. Effect or potential effect The District was not in compliance with the grant requirements. Questioned Costs None. Context We selected 4 monthly reimbursement reports for testwork and noted one report was submitted past the due date. Identification as a repeat finding Not a repeat finding. Recommendation We recommend that management review report due dates and ensure that accurate reports are submitted before they are due. Views of responsible officials Management agrees with this finding. Steps will be taken to correct the reporting process and enhance internal controls to prevent similar occurrences in the future.