Audit 395555

Finding No. 2025-008 Significant Deficiency: Reporting - Compliance and Control Finding ALN 10.555, 10.553, 10.582, 10.559 - Child Nutrition Cluster Federal Agency: U.S. Department of Agriculture Pass-Through Entity: Missouri Department of Elementary and Secondary Education Criteria Or Specific Requirement: According to Uniform Guidance, 2 CFR Section 210.8(a)(2), prior to the submission of a monthly Claim for Reimbursement, each school food authority shall review the lunch count data for each school under its jurisdiction to ensure the accuracy of the monthly Claim for Reimbursement. Condition: The District did not perform a review prior to submission. The District does not have controls in place to ensure reporting is properly supported by lunch count data. Cause: The District did maintain the lunch count data and submit required reports. However, two of the four reports tested did not agree to lunch count data. Effect Or Potential Effect: The District is not in compliance with the Uniform Guidance compliance requirements regarding reporting. Questioned Costs: $7,941 of known and $40,015 of likely questioned costs Context: Of the four reports tested, two were submitted with inaccurate lunch count data. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that the District implement procedures and controls to ensure review and reconciliation of claims reports take place to agree to lunch count data in accordance with the Uniform Guidance. Views Of Responsible Officials: Management agrees with the finding and is actively developing a reconciliation process to review and reconcile the lunch count data and ensure accuracy prior to submitting claims for reimbursement. This will ensure the district is following Uniform Guidance.

Finding No. 2025-009 Material Weakness: Activities Allowed and Unallowed - Compliance and Control Finding ALN 10.555, 10.553, 10.582, 10.559 - Child Nutrition Cluster Federal Agency: U.S. Department of Agriculture Pass-Through Entity: Missouri Department of Elementary and Secondary Education Criteria Or Specific Requirement: According to 2 CFR Section 210.19(a)(1), the District must comply with the accounting requirements for all revenues and expenditures of their nonprofit school food service. Capital expenditures are allowed but require Missouri Department of Elementary and Secondary Education’s (DESE) approval. Condition: The District did not obtain prior approval from DESE for purchasing capital expenditures that were not included on DESE’s preapproved list of capital expenditures. Approval was obtained subsequent to the spending of funds. Cause: The District incurred capital expenditures in March 2025 with federal funding without obtaining prior approval. Effect Or Potential Effect: The District is not in compliance with the Uniform Guidance compliance requirements regarding allowable costs and activities. Questioned Costs: Not Applicable Context: Of the 40 transactions tested, 23 transactions were identified as costs requiring prior approval. These costs were charged to the Child Nutrition Cluster during the period of July 1, 2024 through June 30, 2025. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that the District implement procedures and controls to ensure pre-approval is obtained prior to the expenditure of federal funding. Views Of Responsible Officials: Management agrees with the finding and is implementing procedures and controls to ensure pre-approval of required expenditures. This will ensure the district is following Uniform Guidance compliance requirements.