Finding 1205351 (2025-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-03-31

Audit: 397048

Organization: Independent School District No. 548 (MN)

Auditor: EIDE BAILLY

AI Summary

Core Issue: Lack of proper controls for retaining review documentation of meal counts reported to the State of Iowa.
Impacted Requirements: Monthly reporting for the National School Lunch and School Breakfast Programs is not adequately reviewed, increasing the risk of errors.
Recommended Follow-Up: Implement a documented review process at each school location before submitting reports to ensure accuracy.

Finding Text

2025-003 U.S. Department of Agriculture Child Nutrition Cluster Federal Financial Assistance Listing #10.555 National School Lunch Program Federal Financial Assistance Listing #10.553 School Breakfast Program Reporting and Special Test and Provisions Material Weakness in Internal Control Over Compliance Retention of Review of the Monthly Meal Reporting Criteria: Proper controls over reporting include the retention of the review of monthly reporting to the State of Iowa for meals under the National School Lunch Program and School Breakfast Program. Condition: The Region Schools do not have an internal control system designed to retain the appropriate review documentation for each meal count reported to the State of Iowa. Cause: Each school location in the Region Schools does not have a set review process in place that someone is reviewing the reports separately from the person preparing the reports. Effect: Submissions to the State of Iowa can have errors that would not be noticed. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 20 reports out of 60 reports were selected for reporting testing. Repeat Finding from Prior Years: No Recommendation: We recommend a documented review process be added at each location completed prior to submission of the reports to the State of Iowa. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2025-003 Federal Agency Name: U.S. Department of Agriculture Program Name and FALN # : Child Nutrition Cluster Federal Financial Assistance Listing #10.555 National School Lunch Program Federal Financial Assistance Listing #10.553 School Breakfast Program Finding Summary: The Region Schools do not have an internal control system designed to retain the appropriate review documentation for each meal count reported to the State of Iowa for reimbursement. Responsible Individuals: Bryan Jordan, Controller Corrective Action Plan: The Region Schools will retain a documented review of meal counts at each location completed prior to submission of the reports to the State of Iowa. Anticipated Completion Date: Fiscal year ended June 30, 2026

Other Findings in this Audit

1205343 2025-001

Material Weakness Repeat
1205344 2025-001

Material Weakness Repeat
1205345 2025-001

Material Weakness Repeat
1205346 2025-002

Material Weakness Repeat
1205347 2025-002

Material Weakness Repeat
1205348 2025-002

Material Weakness Repeat
1205349 2025-003

Material Weakness Repeat
1205350 2025-003

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
10.555	NATIONAL SCHOOL LUNCH PROGRAM	$628,865
10.553	SCHOOL BREAKFAST PROGRAM	$74,617
10.582	FRESH FRUIT AND VEGETABLE PROGRAM	$11,949