Finding Text
No. 2023-003 – Significant deficiency in internal controls and noncompliance related to Reporting. Criteria – The USDA requires the District submit monthly claims for reimbursement for meals served to eligible students. Accurate records must be maintained justifying all meals claimed. The District should have controls in place to ensure monthly claims are accurate. Condition – Meal counts for Bandon High School were not accurate because controls over meal counts were not in place. Effect – The District submitted numerous meal claims to the Department of Education that were wrong as a result of miscounting meals and due to errors in determining if meals were to be recorded as free, reduced or paid. Cause – The District did not have an adequate process for counting meals at the high school. Staff performing meal counts did not have appropriate training. There was no evidence of secondary review of the meal counts. Perspective – Auditor tested meal claims using a nonstatistical sample of three of the twelve months claimed. Oregon Department of Education worked with the District in March 2023, audited all prior meal counts for the year, provided training and determined the District over claimed approximately $600 in meals from the Department of Education. Recommendation – The District should use software at the high school to track meal claims and train all staff on the process. Daily meal counts should be reviewed by a second person for accuracy. The process for tracking and monitoring should be documented and followed. Management’s response: Management agrees with the finding. The Food Service Director worked with the Oregon Department of Education to correct the errors in meal counts. Corrective action was taken in April 2023.