FAC Explorer

Finding 384735 (2023-005)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-26
Audit: 297873
Organization: Lake County School District #7 (OR)
Auditor: Kdp Certified Public Accountants LLP

AI Summary

  • Core Issue: The District failed to calculate the required average paid lunch price for the fiscal year, violating the Paid Lunch Equity requirement.
  • Impacted Requirements: Insufficient internal controls led to non-compliance with federal guidelines for funding nonprofit school food service accounts.
  • Recommended Follow-Up: Enhance internal controls and establish policies to ensure timely calculations for paid lunch pricing adjustments.

Finding Text

2023-005: Material Weakness - Paid Lunch Equity (NSLP) U.S. Department of Agriculture Pass-through – Oregon Department of Education Child Nutrition Cluster – AL # 10.555 Criteria – The District is required to ensure that sufficient funds are provided to its nonprofit school food service accounts from lunches served to students not eligible for free or reduced price meals. An entity that charges less for a paid lunch that the difference between the federal reimbursement rate for such a lunch and that for a free lunch is required to comply. The difference in price is known as "equity". There are two ways to meet the requirement: by raising prices charged for paid lunches or through contributions from other non-federal sources. The District is required to perform calculations to determine whether its paid lunch price requires adjustment. Condition – The District did not calculate its average paid lunch pricing requirement for the fiscal year ended June 30, 2023. Cause – The District did not have adequate internal controls, policies and procedures with regard to its responsibility to ensure sufficient funds are provided to its nonprofit food service accounts. Effect or Potential Effect – The District may not have adjusted its paid lunch price according to the calculations required by paid lunch equity calculation. Questioned Costs – $0 Recommendations – We recommend the District enhance internal controls to ensure calculation of the average paid lunch is performed timely. Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. Management will enhance internal controls to ensure requirements of paid lunch equity are met.

Categories

Questioned Costs Cash Management Material Weakness School Nutrition Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 384730 2023-004
    Material Weakness
  • 384731 2023-004
    Material Weakness
  • 384732 2023-004
    Material Weakness
  • 384733 2023-005
    Material Weakness
  • 384734 2023-005
    Material Weakness
  • 961172 2023-004
    Material Weakness
  • 961173 2023-004
    Material Weakness
  • 961174 2023-004
    Material Weakness
  • 961175 2023-005
    Material Weakness
  • 961176 2023-005
    Material Weakness
  • 961177 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $245,947
84.027 Special Education_grants to States $180,121
10.553 School Breakfast Program $70,450
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $36,377
84.367 Improving Teacher Quality State Grants $30,694
10.555 National School Lunch Program $27,964
84.358 Rural Education $24,002
93.981 Improving Student Health and Academic Achievement Through Nutrition, Physical Activity and the Management of Chronic Conditions in Schools $11,395
84.424 Student Support and Academic Enrichment Program $4,800
84.365 English Language Acquisition State Grants $4,257
10.559 Summer Food Service Program for Children $2,989
84.425 Education Stabilization Fund $2,717
10.558 Child and Adult Care Food Program $226