Finding 523285 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-02-14
Audit: 342537
Organization: North Santiam School District (OR)
Auditor: Accuity LLC

AI Summary

  • Core Issue: Internal controls for reporting meals and claiming revenue in the Child Nutrition Cluster are poorly designed, leading to potential errors.
  • Impacted Requirements: Lack of reviews and re-tallies of claim reports increases the risk of undetected mistakes.
  • Recommended Follow-Up: Implement a review process for claims and use spreadsheets for accurate tabulation to prevent future errors.

Finding Text

Internal controls over reporting meals and claiming revenue for the Child Nutrition Cluster were noted to be inadequately designed. Type of Finding Significant Deficiency Condition It was noted during audit testing, that no reviews of the claim reports were being performed. Hand counts were not re-tallied and overall counts were not reviewed prior to or after submission. We believe this was due to a turnover in key positions within the program in recent years. Criteria Internal controls should be present and operatings to prevent or detect errors. Prevalence Program-specific Questioned costs None Effect The District over-claimed meals, however the amount was immaterial. However, without review, the possibility exists that larger errors would not be caught. Recommendations We recommend the District implement a process to review claims submitted to ensure accuracy and catch errors for correction. In addition, we recommend the District utilize a method other than addition by hand for tabulating totals from hand counts, such as a spreadsheet that could easily be reviewed for input errors. Management's Response The process was changed immediately upon notification by the audit team.

Corrective Action Plan

The District took immediate steps to remedy the issue, new reviews are required before and after submission. The Business Manager and Food Services Director have implemented the changes.

Categories

Reporting School Nutrition Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1099727 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $741,514
84.010 Title I Grants to Local Education Agencies $424,190
10.553 School Breakfast Program $199,901
84.425 Education Stabilization Fund $76,664
84.424 Student Support and Academic Enrichment Program $56,296
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $50,064
10.555 National School Lunch Program $28,617
84.365 English Language Acquisition State Grants $19,209
10.559 Summer Food Service Program for Children $10,685
10.185 Local Food for Schools Cooperative Agreement Program $10,319
10.665 Schools and Roads - Grants to States $9,174
84.173 Special Education Preschool Grants $7,358
10.649 Pandemic Ebt Administrative Costs $3,256