Finding 1165886 (2025-002)

Material Weakness in Internal Control Over Compliance Finding 2025-002 Child Nutrition Cluster #10.555 and #10.553 Paid Lunch Equity Condition: The District did not have internal control over compliance procedures designed and implemented for the compliance of Paid Lunch Equity requirements. Criteria: Internal control best practices for federal programs woudl dictate the District have internal control over compliance procedures designed and implemented for the review of Paid Lunch Equity calculations. Cause: Internal control over compliance procedures were not designed and implemented to ensure proper preparation and review of the Paid Lunch Equity calculation. Effect: The could potentially result in material noncompliance with federal program requirements and potential financial loss. Recommendation: We recommend that the District design and implement documented internal control procedures to ensure proper preparation and review of the Paid Lunch Equity calculation. Auditee Response: The auditee understands and agrees with the finding. The auditee will develop and implement procedures for the review of the Paid Lunch Equity calculation.