Finding 524027 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-02-20
Audit: 343221
Organization: Sheridan 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 and lack necessary reviews.
  • Impacted Requirements: There are no reviews of claim reports, leading to potential undetected errors, especially after turnover in key positions.
  • Recommended Follow-Up: Implement a review process for claims to ensure accuracy and catch errors before submission.

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 under 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. Management's Response The process was changed immediately upon notification.

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

  • 1100469 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $359,295
17.289 Community Project Funding/congressionally Directed Spending $339,150
84.010 Title I Grants to Local Education Agencies $273,894
84.425 Education Stabilization Fund $171,468
10.553 School Breakfast Program $123,141
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $62,382
84.424 Student Support and Academic Enrichment Program $37,865
10.555 National School Lunch Program $27,165
10.582 Fresh Fruit and Vegetable Program $13,976
10.559 Summer Food Service Program for Children $8,758
10.185 Local Food for Schools Cooperative Agreement Program $6,327
84.173 Special Education Preschool Grants $3,924
10.649 Pandemic Ebt Administrative Costs $653