Audit 411483

FEDERAL PROGRAM: 10.582, 10.553, 10.555 Child Nutrition Cluster CONDITION: The District submitted monthly child nutrition reimbursement claims that contained inaccurate meal counts for multiple months during the fiscal year. Specifically, the District understated reimbursable meal counts due to errors in excluding reimbursable meals served. Additionally, the District was unable to provide supporting documentation for several months of reimbursement claims. CRITERIA: Management is responsible for ensuring reporting meets the Reporting Principles as required by 2 CFR §200.302, §200.328 and program regulations, where information reported is complete, accurate and timely. Monthly claim reports submitted through the state reporting system must accurately reflect reimbursable meals served. EFFECT: While the reimbursing state agency corrected the errors and reimbursed the District for the corrected amounts, the incorrect filings could potentially result in the District not being reimbursed the full amount to which it is entitled under the grant specifications. CAUSE: Insufficient staff training resulted in reimbursement claims requests to be misstated or lack sufficient and appropriate supporting documentation. RECOMMENDATION: We recommend the District ensures staff are adequately trained to ensure the proper documentation of child nutrition reimbursement claims is maintained. VIEWS OF RESPONSIBLE OFFICIALS: The District will continue to review their processes to ensure that child nutrition reimbursement claims are completed accurately.

FEDERAL PROGRAM: 10.582, 10.553, 10.555 Child Nutrition Cluster CONDITION: Child nutrition cluster revenue was overstated by $122,838 due to a commodities payment being mistakenly recorded twice. Additionally, during our reconciliation of the A133 report to the trial balance we noted that state grant revenue was mistakenly recorded as child nutrition cluster revenue. CRITERIA: Child nutrition revenue reported on the trial balance should accurately reflect payments received from the Oregon Department of Education for fiscal year 2026. Additionally, non federal revenue should not be recorded to federal revenue accounts. EFFECT: While the total of amount of revenue received was recorded in the correct fund, without adequate reconciliation and review of federal revenues received, the possibility of revenue amounts being recorded in the wrong revenue source category (particularly state or federal) exists. CAUSE: Sufficient reconciliation of the trial balance to the A133 report was not performed. RECOMMENDATION: We recommend that the District implement a review process to ensure that revenue is recorded and coded accurately. VIEWS OF RESPONSIBLE OFFICIALS: The District continues to improve controls over revenue and has continued to implement additional control practices to ensure that revenue is being recorded accurately.

FEDERAL PROGRAM: 84.027 Special Education CONDITION: We noted that bi-annual certifications were not performed for the year under audit. CRITERIA: OMB-87 requires that bi-annual certification be signed for all employees charged to the federal program. EFFECT: Without bi-annual certifications performed the possibility exists that expenditures may be improperly charged to the federal program. CAUSE: Bi-annual certifications were not performed. RECOMMENDATIONS: We recommend that the District perform the bi-annual certifications for the federal program. VIEWS OF RESPONSIBLE OFFICIALS: The District continues to improve controls over payroll. When this finding was noted in the fiscal year 2024 audit, a corrective action plan was submitted dated October 6, 2025. The District has fully implemented the steps outlined in the plan to be in compliance for fiscal year 2026.