Audit 377765

2025-006 – Noncompliance and 2025-008 – Material Weakness (Child Nutrition Cluster) Condition: Two claims selected for testing were not approved by the board prior to payment. Criteria: All claims are to be listed for board approval and formally approved by the board prior to payment. Cause: The claims list was not reviewed for completeness and accuracy prior to being presented to the board for approval. Effect: Claims were paid without prior board approval, in violation of the District’s internal controls over cash disbursements (allowable costs). Recommendation: Management should review the claims list for completeness and accuracy before presenting the list to the board for approval. Views of Responsible Officials and Planned Corrective Actions: Management will review the claims list for completeness and accuracy before presenting the list to the board for approval.

2025-007 – Noncompliance and 2025-009 – Material Weakness (Child Nutrition Cluster) Condition: The District underreported meal counts for its August and October 2024 meal reimbursement reports resulting in lost reimbursement of approximately $38,000. Criteria: Accurate reimbursement requests should be prepared and submitted monthly. Cause: The District did not perform a secondary review of the reimbursement reports prior to submission and did not analyze revenue compared to meal counts to ensure accurate reimbursements. Effect: Because of the reporting errors, the District was reimbursed approximately $38,000 less than it was entitled to receive. The reporting errors were not discovered until it was too late to amend the erroneous reports. Recommendation: The District should conduct a secondary review of the nutrition reimbursement reports before they are submitted. Also, monthly revenue should be analyzed for reasonableness each month. Views of Responsible Officials and Planned Corrective Actions: The District will implement a secondary review process for the nutrition reimbursement reports and will monitor the monthly financials to ensure revenue is reasonable based on meal counts.

2025-006 – Noncompliance and 2025-008 – Material Weakness (Child Nutrition Cluster) Condition: Two claims selected for testing were not approved by the board prior to payment. Criteria: All claims are to be listed for board approval and formally approved by the board prior to payment. Cause: The claims list was not reviewed for completeness and accuracy prior to being presented to the board for approval. Effect: Claims were paid without prior board approval, in violation of the District’s internal controls over cash disbursements (allowable costs). Recommendation: Management should review the claims list for completeness and accuracy before presenting the list to the board for approval. Views of Responsible Officials and Planned Corrective Actions: Management will review the claims list for completeness and accuracy before presenting the list to the board for approval.

2025-007 – Noncompliance and 2025-009 – Material Weakness (Child Nutrition Cluster) Condition: The District underreported meal counts for its August and October 2024 meal reimbursement reports resulting in lost reimbursement of approximately $38,000. Criteria: Accurate reimbursement requests should be prepared and submitted monthly. Cause: The District did not perform a secondary review of the reimbursement reports prior to submission and did not analyze revenue compared to meal counts to ensure accurate reimbursements. Effect: Because of the reporting errors, the District was reimbursed approximately $38,000 less than it was entitled to receive. The reporting errors were not discovered until it was too late to amend the erroneous reports. Recommendation: The District should conduct a secondary review of the nutrition reimbursement reports before they are submitted. Also, monthly revenue should be analyzed for reasonableness each month. Views of Responsible Officials and Planned Corrective Actions: The District will implement a secondary review process for the nutrition reimbursement reports and will monitor the monthly financials to ensure revenue is reasonable based on meal counts.