Corrective Action Plans

Management?s Response/Corrective Action Plan: The school business manager will ensure all supporting documentation supports the reported meal counts for school claims. The school manager has met with the new school nutrition director to create a plan. The correction has been made for fiscal year 2023.

CORRECTIVE ACTION PLAN - FINDING 2022-001 We have prepared the accompanying corrective action plan as required by the standards applicable to the financial audit contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). CFDA Number Program Title Federal Agency 10.555, 10.559 Child Nutrition Cluster U.S. Department of Agriculture Condition The District did not properly review child nutrition claim forms prior to submission to the Arizona Department of Education resulting in net over claimed amount of $7,732. Corrective Action Plan The District has implemented a review of child nutrition claims to source reports prior to submission to the Arizona Department of Education. District Contact Erin Pugh, Business Manager Completion Date January 27, 2023

ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Olympia School District No. 111 September 1, 2021 through August 31, 2022 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-001 Finding caption: The District?s internal controls were inadequate for ensuring compliance with federal Title I requirements for eligibility and assessment system security. Name, address, and telephone of District contact person: Kate Davis, 111 Bethel Street N.E., Olympia WA, 98506, 360-596-6124 Corrective action the auditee plans to take in response to the finding: Title I, Part A: Ranking and Allocation The Olympia School District will utilize the Title I, Part A guide released by OSPI annually and reference the School Low-Income counts (page 52) to ensure that the District is using the correct low-income codes that should be included based on the form selected in the grant application. The District will have the Executive Director of Teaching and Learning, the Program Manager, and OSPI Title I, Part A Program contact confirm that student data is accurate prior to submitting the 2023-2024 grant. Assessment System Security Prior to the 2022 school year, Assessment Services was part of the Teaching and Learning Department. Moving forward, OSD will move responsibility of Assessment Services back to this department. Part of this transition will include the Executive Director of Teaching and Learning and Assessment Director developing written test security building plans for all standardized tests administered in OSD. Additionally, these same directors will work closely with OSPI?s Assessment Operations Department to ensure compliance with each state assessment?s training and documentation requirements.Anticipated date to complete the corrective action: Ranking and Allocation: The District will implement this corrective action immediately, and it will be reflected in the 2023-2024 Consolidated grant application. Assessment System Security: The District will implement this corrective action immediately, and it will be implemented with adjusted training for staff beginning Fall 2023.

8. Deficiency 2022-008 ? Instance of Noncompliance ? Meal County Tally a. An instance of noncompliance was identified over compliance requirement L from the 2022 Office of Management and Budget (OMB) Compliance Supplement. Recordkeeping of the daily supporting documentation for the monthly claims was found to not be in compliance with federal requirements. The District should develop and implement policies and procedures to ensure that all original daily meal counts and tallies used to support reimbursement reports are maintained for the appropriate amount of time. b. Plan of Action: The District will review, develop and implement procedures to provide the required reporting. c. Timeframe: Fiscal year 2023-24

7. Deficiency 2022-007 ? Instance of Noncompliance ? Procurement Policy a. An instance of noncompliance was identified over compliance requirement 1(a) from the 2022 Office of Management and Budget (OMB) Compliance Supplement. The District does not have a documented procurement policy. The District should develop and implement a formal procurement policy consistent with Federal, State, and local laws and regulations. b. Plan of Action: The District will undertake a review of best practices regarding procurement policy and will advance resulting recommendations. c. Timeframe: Fiscal year 2023-24

6. Deficiency 2022-006 ? Material Weakness ? Eligibility Verification Review a. A material weakness in controls over compliance was identified for controls over compliance requirement N.1 from the 2022 Office of Management and Budget (OMB) Compliance Supplement. Controls over eligibility verification were found not to be implemented. The District should develop and implement policies and procedures to ensure that all eligibility verifications are review in a timely manner and documented appropriately. b. Plan of Action: The District will develop procedures to ensure all eligibility verifications are reviewed timely by an administrator and documented appropriately. c. Timeframe: August 2023

5. Deficiency 2022-005 ? Material Weakness ? Evidence of Review Needed a. A material weakness in controls over compliance was identified for controls over compliance requirement L from the 2022 Office of Management and Budget (OMB) Compliance Supplement. Controls over reporting were found not to be implemented. The District should develop and implement policies and procedures to ensure that all monthly reimbursement reports are reviewed in a timely manner and documented appropriately. b. Plan of Action: The District will implement internal controls to address the need for additional oversight of monthly meal reimbursement reports. c. Timeframe: August 2023

4. Deficiency 2022-004 ? Material Weakness ? Federal Vendor Status Check a. A material weakness in controls over compliance was identified for controls over compliance requirement I(b) from the 2022 Office of Management and Budget (OMB) Compliance Supplement. Controls over suspension and debarment determinations were found not to be implemented. The District should develop and implement policies and procedures to ensure that all suspension and debarment determinations are reviewed in a timely manner and documented appropriately. b. Plan of Action: The District is implementing new protocols to ensure vendors receiving federal dollars are appropriately vetted for suspension or debarment, using SAM.gov. c. Timeframe: New protocols are underway to be established for school year 2023-24.

3. Deficiency 2022-003 ? Material Weakness ? Eligibility Determination a. A material weakness in controls over compliance was identified for controls over compliance requirement E from the 2022 Office of Management and Budget (OMB) Compliance Supplement. Controls over eligibility determinations were found not to be implemented. The District should develop and implement policies and procedures to ensure that all eligibility determinations are reviewed in a timely manner and documented appropriately. b. Plan of Action: The District will develop procedures to ensure all eligibility determinations are reviewed timely and documented appropriately by an administrator. c. Timeframe: Beginning August 2023

2022-006 Recommendation: We recommend that the District review the requirements of 2 CFR Section 200.213 and ensure that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursement funds to the vendor. Views of the Responsible Officials and Planned Corrective Actions: The District has created a sams.gov account to verify any company that is paid with Federal money. Implementation Plan: The Interim Business Administrator will work closely with the new Food Service Director to verify and record any company/vendor that is paid with Federal money. Implementation Date: November 2022. Person Responsible for Implementation: Interim Business Administrator - Brenda Leitt.

FINDING 2022-004 Information on the federal program: Subject: Child Nutrition Cluster ? Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the reporting compliance requirement. Context: We noted that for two claims in a sample of four, there was no formal evidence of the sponsor claim reimbursement summary being reviewed by someone independent of who prepared the sponsor claim reimbursement summary prior to submission. We noted that for one claim in a sample of four, the meal counts were over/under claimed for the month. We noted that in October 2020 the School Corporation had overclaimed lunches by 175 meals and underclaimed breakfast by 156 meals. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Superintendent is now utilizing the personalized login on CNP Web to review claims before final submission. The superintendent will also email approval of claims to the FSMC Food Service Director upon submission and approval by the superintendent on CNP Web. Responsible Party and Timeline for Completion: The Superintendent and FSMC Food Service Director will be the responsible parties and the corrective action will take place immediately (3/15/2023).

FINDING 2022-003 Information on the federal program: Subject: Child Nutrition Cluster ? Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Procurement and Suspension and Debarment Audit Finding: Material Weakness Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the Child Nutrition Program and Procurement and Suspension and Debarment compliance requirements for purchases made outside of the purchasing cooperative. Context: During the audit period, the School Corporation had purchases between $10,000 and $150,000 from four vendors which fall under the small purchase method for federal and state procurement regulations and were charged to Fund 0800 ? School Lunch Fund. For one vendor selected for testing, documentation was not presented to verify the School Corporation had performed checks to assure the vendor was not suspended or debarred prior to entering into the transaction in order to satisfy the suspended and debarment requirements. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Moving forward, the SAMS website will be utilized to confirm that purchases from vendors that are between the $10,000 and $150,000 threshold are not suspended or debarred prior to entering into transactions. Responsible Party and Timeline for Completion: The Superintendent or Superintendent?s designee will be the responsible party. This correction will be put into effect 3/15/2023.

FINDING 2022-002 Information on the federal program: Subject: Child Nutrition Cluster - Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Allowable Costs/Cost Principles Audit Finding: Material Weakness Condition: An effective internal control system was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Allowable Costs/Cost Principles compliance requirements. Context: During testing of 12 vendor disbursements for allowable costs/cost principles, we noted there was one month where there was no documented review by the School Corporation?s Business Manager of expenditures paid to the Food Service Management Company by the School Corporation?s Business Manager. The only review was performed by the Food Services Director, who is a Food Service Management company employee. We tested six other monthly submissions of Food Service Management company disbursements and noted they were all appropriately reviewed by the School Corporation with supporting documentation attached. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The missing signature appears to be an uncommon oversight within our current system of internal controls. The Superintendent and FSMC Food Service Director will make it a point to review signature pages for both signatures at each monthly financial review. Responsible Party and Timeline for Completion: Superintendent and FSMC Food Service Director discussed this finding on 3/15/2023 and will put corrective action in place immediately.

CORRECTIVE ACTION PLAN OF CURRENT AUDIT FINDINGS June 30, 2022 Finding 2022-001 ? Child Nutrition Cluster ? Reporting Contact Person Responsible for Corrective Action: Thomas McFarland Contact Phone Number: 574-342-2255 Views of Responsible Official: We do not concur with the finding. Description of Corrective Action Plan: While the claim does not have a second signature indicating review before submission, the procedures that Triton follows, which include segregation of duties, justify that someone else reviewed the data, before submission. The data is compiled by the building secretary and submitted to the Business Manager. The Business Manager reviews the claim and logs into the online submission website with a secure user name and password to enter the data. While we believe that the secure user name and password is just as much proof as a signature that the data has been reviewed, we will begin having the document signed by a second person in order to satisfy this requirement Anticipated Completion Date: 3/15/23

On behalf of the finding 22-03-CFDA 10.553 and 10.555-Federal Grant Programs the following changes will be implemented: The Food Program Directors will ensure that all the food-related invoices will be separated in relation of program purchases to menu requirements. All the invoices will be approved by the Food Program Directors. All the invoices will be paid separately. All food invoices related to non-funded purchases will be allocated accordingly and paid separately. The enforcement of the purchasing procedure will be in effect starting October 2023 to ensure the separation of purchasing, inventory control, authorization and disbursement functions. The responsible party for this change will be Sharon Gardner, Food Program Director.

Contact Person Responsible for Corrective Action: Michelle Keene Contact Phone Number: (812) 384-4386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The School Corporation will implement a formal review of the Education Stabilization Annual Report and ensure the amounts reported agree to the underlying records. Anticipated Completion Date: Effective for the next Annual Report due

Purchase needed equipment.

CORRECTIVE ACTION PLAN 2022-001 This finding is caused by the District?s Food Service Fund?s fund balance being over the USDA?s threshold of 3 months? average expenditures. The District is fully aware of this situation and will create and submit a spend down plan in place to help alleviate the excess fund balance down to a reasonable level and anticipates the completion date for the corrective action plan be before the end of the 2022-23 fiscal year. The persons responsible for the corrective action are Kristy Donner, the food service director and Nicole Darby, the business manager. The anticipated completion date of the corrective action plan is before the end of the 2023 fiscal year. The District anticipates certain projects may require lead time for getting new equipment or renovation projects completed and therefore will plan accordingly to make sure projects get completed prior to the end of the fiscal year. The plan for monitoring adherence is the food service director and business manager will work together to assess where the fund balance is after all of the projects from the spend down plan are completed.

Name of Contact Person: Jennifer Phillip Corrective Action Plan: Records will be reviewed monthly by two individuals to insure they are complete. Back up documentation shall be kept in a secure location where at least two other budget supervisors are aware and have access to same. Proposed Completion Date: January 31, 2023

FINDING 2022-003 Contact Person Responsible for Corrective Action: Kasey Clark Contact Phone Number: 574-772-1604 Views of Responsible Official: We concur with the findings. Description of Corrective Action Plan: The income guidelines will be uploaded into the food service system after printing off the government site and two people will have eyes on them and this has started for 2022/2023. Anticipated Completion Date: March 2023

This Corrective Action statement is to address the Auditor Finding that the number of breakfasts reported to the state in April of 2022 was mis-reported by 27 breakfasts. Our April of 2022 State Claim Report showed 2330 breakfasts served in April and our CN-6 Report showed 2303 breakfasts served. To the best of my knowledge, I transposed the 3 and the 0 on the state report causing the over reporting of breakfasts served. In the 2022 School year, we just reported the total number of meals served due to all students receiving free lunch and breakfast using the Seamless Summer Option for reporting meals served. Now that we are back on the School Nutrition Program, we report the number of free, reduced, and paid meals served making it easy to double check the total meals served against the CN-6 and CN-7 to ensure the numbers are correct. As of 2/14/23, I will double check the totals for the meals served against the reports to guarantee accuracy. I will also submit the reports to be reviewed by my supervisor, the Superintendent, prior to submission.

In returning to full district operations in the 2021-2022 school year, revenues significantly increased in response to district operations. While spending increased by more than 36%, revenues increased more than 90%. The significant increases to revenue can be correlated back to federal reimbursements for breakfast, lunch and snack. Pandemic reimbursement rates were used through 6/30/2022, resulting in an average increase of .55/lunch reimbursement. Coinciding with the return of in-person instruction, the district overall has seen a decrease in enrollment. The last full year we can compare is 2018-2019 where 715,000 lunches were served, in contrast, 2021-2022 had a total of 576,000 lunches served. In January of 2022, the district implemented an all staff mid year wage increase. Cafeteria wages were brought to $15/hour for all entry level positions, with additional increases on accelerated steps where appropriate. This had an overall impact of roughly 10% increase in spending in the area of payroll and benefits compared to the 2020-2021 school year. Given the current fiscal environment, the district will continue to see increases to operating costs. The 2022-23 milk bid alone came in 11.6% higher than the 2021-2022 school year. Along with an increase to operating costs and routine equipment replacements, additional planning has taken place for future spending. Initial steps in the re-design of serving line pieces at the high school have begun to take place for the next year. Plus to re-do the serving lines in grades 3-6 were put on hold during COVID. Those projects will begin to be resurrected within the 2022-2023 school year.

FINDING 2022-003 Contact Person Responsible for Corrective Action: Stephanie Haynes- Clifford, Food Service Director Contact Phone Number: 260 665 2854 Extension 1202 Views of Responsible Official: The bids for bread and milk were renewed by Region 8 for the 2020-2021 school year. The Service Center could not provide documentation that procedures were performed to verify the vendors were not suspended or debarred from participation in federal programs prior to entering into covered transactions with these vendors. Description of Corrective Action Plan: Food Service will review bid packets to ensure documentation was provided as proof that the vendors were not suspended or debarred. If such evidence is not provided, the Food Service Director will verify and request appropriate documentation Anticipated Completion Date: February 10, 2023

Contact Person Responsible for Corrective Action: Stephanie Haynes- Clifford, Food Service Director Contact Phone Number: 260 665 2854 Extension 1202 Views of Responsible Official: The School Corporation had not separated activities related to payroll withholding and benefit disbursements. These were paid without evidence of review and approval by a person not involved in the original disbursement process. Description of Corrective Action Plan: Effective immediately, Payroll initials and dates all activities related to payroll withholding and benefit disbursements. Additionally, The Business Managers reviews and approves by initialing and dating. Anticipated Completion Date: January 2023

Department: Education Title: Internal control over CACFP eligibility needs improvement Questioned Costs: Known: $50,275 Likely: Undeterminable Status: Corrective action complete Corrective Action: The Department added to the check list a space for the on-site documentation for the pre-approval site visit to be uploaded into CNPWeb. The Department made the pre-site visit mandatory before the start of the program. Completion Date: March 6, 2023 Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880