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.