Finding 5724 (2023-003)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2023-12-20
Audit: 7743
Organization: Odessa R-Vii School District (MO)

AI Summary

  • Core Issue: Odessa R-VII School District's food service program has excess balances, violating non-profit operation guidelines.
  • Impacted Requirements: The District exceeded the allowable fund balance by $1,106,504 across two grants, breaching compliance with child nutrition guidelines.
  • Recommended Follow-Up: Monitor fund balances closely and implement corrective actions, including purchasing equipment and ensuring accurate billing from food service contractors.

Finding Text

2023-003 Child Nutrition Cluster - CFDA No. 10.553, 10.555 Grant No. 054-041 Condition: Odessa R-VII School District must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $405,902. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit. Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $405,902 based on the amounts in the fund balance of $721,268 above the three months operating costs of $315,366. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Views of Responsible Officials & Planned Corrective Action: The District will take action to reduce the food service balance in a timely fashion. The completion date for this corrective action is May 31, 2024.2023-002 Child Nutrition Cluster - CFDA No. 10.553, 10.555 Grant No. 042-124 Condition: Odessa R-VII School District must operate the food service program on a non-profit basis. The District's ending food service balance exceeded three months average expenses by $700,602. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit. Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $700,602 based on the amounts in the fund balance of $1,066,215 above the three months operating costs of $365,614. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Views of Since the $2,000,000 of local funds to totally remodeled the Responsible food service department at the Clinton Intermediate School Officials & Planned is not enough to offset the excess balance in the food service Corrective Action: department, our plan for reducing the program balance of an excess of $976,148.58 will be purchasing equipment and holding our contracted food service accountable for billing. During the fiscal year 2022/2023 Taher did not bill us for three months. They billed us in the 2023/2024 fiscal year

Corrective Action Plan

U.S. Department of Education Odessa R-VII School District respectfully submits the following Corrective Action Plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action: Jon Oetinger, Superintendent Odessa R-VII School District Independent Public Accounting Firm: Gerding, Korte & Chitwood, P.C., 723 Main Street, Boonville, MO 65233 Audit Period: Year ended June 30, 2023 The findings from the June 30, 2023, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Significant Deficiency 1023-003 Child Nutrition Cluster Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Action Taken: The District will take action to reduce the food service balance in a timely fashion. The completion date for this corrective action is May 31, 2024. Completion Date: June 30, 2024 Sincerely, Jon Oetinger, Superintendent Odessa R-VII School District

Categories

Questioned Costs Cash Management School Nutrition Programs Equipment & Real Property Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $394,960
10.553 School Breakfast Program $125,154
10.555 National School Lunch Program $76,791
93.575 Child Care and Development Block Grant $50,050
84.367 Improving Teacher Quality State Grants $44,088
10.558 Child and Adult Care Food Program $14,677
84.425 Education Stabilization Fund $10,000
84.173 Special Education_preschool Grants $6,633
84.027 Special Education_grants to States $2,803
93.434 Every Student Succeeds Act/preschool Development Grants $800