Finding 3652 (2023-004)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-07

AI Summary

  • Core Issue: The District failed to complete the required verification process for free and reduced meal eligibility by the November 15 deadline, conducting it instead in March 2023.
  • Impacted Requirements: This delay may lead to inaccurate eligibility determinations, violating USDA guidelines.
  • Recommended Follow-up: The District should ensure ongoing communication with the Oregon Department of Education regarding any changes in eligibility processes or fee structures.

Finding Text

No. 2023-004 – Material weakness in internal controls and noncompliance related to Special Tests and Provisions-Verifications. Criteria – The USDA requires the District complete a verification process each school year, to ensure applicants are eligible and are properly classified as free or reduced. This should be done by November 15 of each year. Condition – The District did not perform the verification process until March 2023. Effect – Eligibility determinations may not be accurately made in accordance with the federal income eligibility guidelines. Cause – District management did not believe verifications were required. Perspective - 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 perform the validation process on free/reduce meal applications. The validation process was completed in April 2023, with the assistance of the Oregon Department of Education. There were no errors noted during the verification process. 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

Corrective Action Plan

#2023-004 Material Weakness related internal controls and compliance with Special Tests and Provisions – Verifications: The District did not perform verification of free/reduced meal applications until March 2023. Recommendation: Auditor recommends the District maintain close communication with the Department of Education, particularly during any period when there is a change in manner in which the food service program operates. Action Taken: The Bandon School District will maintain close communication with the Department of Education, particularly during any period when there is a change in the manner in which the food service program operates. The Director of Food Services will also reach out to the verification team to make sure verifications are done promptly. They will also check regularly for incoming applications that also must be verified promptly. Effective May 2023.

Categories

Special Tests & Provisions Eligibility Material Weakness School Nutrition Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 3648 2023-002
    Material Weakness
  • 3649 2023-002
    Material Weakness
  • 3650 2023-003
    Significant Deficiency
  • 3651 2023-003
    Significant Deficiency
  • 3653 2023-004
    Material Weakness
  • 580090 2023-002
    Material Weakness
  • 580091 2023-002
    Material Weakness
  • 580092 2023-003
    Significant Deficiency
  • 580093 2023-003
    Significant Deficiency
  • 580094 2023-004
    Material Weakness
  • 580095 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $236,400
84.367 Improving Teacher Quality State Grants $38,824
10.553 School Breakfast Program $35,746
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $34,995
10.555 National School Lunch Program $16,034
84.424 Student Support and Academic Enrichment Program $12,503
84.027 Special Education_grants to States $9,373
84.048 Career and Technical Education -- Basic Grants to States $8,376
84.173 Special Education_preschool Grants $2,064
10.559 Summer Food Service Program for Children $1,631
84.425 Education Stabilization Fund $1,014
84.358 Rural Education $48