Audit 396992

Condition: The District's supporting documentation for any students who filled out an online application was not properly maintained. Criteria: Districts are required to maintain supporting documentation (typically, applications) for all students who submit applications for free or reduced meals. Cause: District staff did not properly maintain applications on file. Effect: The auditors were unable to verify whether students were correctly classified as to free/reduced/paid due to the District not maintaining the support behind each online application. Improper categorization of students would affect the reimbursements received by the District under the Child Nutrition Cluster. Recommendation: We recommend the District review its procedures for maintaining supporting documentation year over year. Corrective Action Plan: The District will print and save copies of all online applications to enhance record retention. 14

Condition: The District did not timely report the quarterly submissions. Criteria: Districts are required to submit the quarterly financial submission within 40 days of quarterend. Cause: District staff did not submit the quarterly financial submission within 40 days of quarter-end. Effect: Failing to submit on time could affect the reimbursements received by the District under the SBS program. Recommendation: We recommend the District review its procedures for submitting the quarterly financial submissions to ensure that they are submitted timely. Corrective Action Plan: The District acknowledges its lack of timeliness for the quarterly reports and will continue to review its procedures for submitting the quarterly financial submissions to ensure that they are submitted to the SBS Medicaid System in a timely manner.

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correctly record interfund activity. Criteria: A good system of internal controls would provide for accurate recording and reporting of accrued payroll, leases, capital assets, and grant receivables on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to the Other Post-Employment Benefits Trust interfund activity were required in order to accurately present the District’s financial statements. Effect: A material adjustment to the District’s beginning fund balance was required to properly state interfund balances. Recommendation: We recommend the District implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The District will implement internal controls to properly record interfund balances on a timely basis prior to audit fieldwork.