Finding Text
No. 2023-002 – Material weakness in internal controls and noncompliance related to Eligibility. Criteria – Unless a school is operating under the Community Eligibility Program (CEP), the USDA requires applications providing household income and size be submitted, processed and reviewed to determine eligibility for free, reduced or paid meals. Applicants are to be notified of their eligibility within 10 days of receiving the application. Condition – Bandon High School was not under the Community Eligibility Program in 2022-23 however, the school did not actively solicit applications. Instead, any applications that were received were filed away without review. Of the applications available, auditor tested nine (non-statistical sampling), noting one was incorrectly determined to be eligible for free meals when it should have been reduced. None in the sample contained evidence of review by a second person. Of the sample tested, all applicants were either notified of their eligible status over six months late or no evidence could be provided of when the notice was sent. Effect – The District had appropriate application forms available in the annual school registration packet and received several from households but due to not actively soliciting applications, the number was much less than a typical year. The District needed to establish a base year for the high school to enter the Community Eligibility Program and failing to accurately track the number of students eligible for free or reduced meals delayed entry into that program by a year. Cause – The District had Federal, State and local programs in place during 2022-23 which resulted in free meals to all students at all schools. This caused District management to believe that they did not have to process free/reduce meal applications. As a result, the meal claim forms submitted to the Oregon Department of Education did not accurately reflect the number of households eligible for free or reduced meals. Perspective - Oregon Department of Education worked with the District in March 2023, provided training and determined the District over claimed approximately $600 in meals from the Department of Education. Recommendation – The District should maintain open communication with the Oregon Department of Education anytime there is a change in the eligibility process or the fee structure the District establishes. Management’s response: Management agrees with the finding. See the Corrective Action Plan.