Regional School Unit 34

2025-002 U.S. Department of Education, For the period July 1, 2024, through June 30, 2025, Assistance Listing #84.010 Title IA Disadvantaged Criteria: Under Title I’s high school graduation rate requirements, to remove a student from a cohort, a school must confirm in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. Grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures. Statement of Condition: The School Unit currently has informal controls over the process of removing students from their cohorts. Cause: Although the School Unit has maintained documentation of the students removed from their cohorts, there are limited and inconsistent controls over the removal of students from their cohorts. Effect: The School Unit runs the risk of erroneously removing students from their cohorts, which could lead to non-compliance with the requirements of Title I, and result in a loss of federal funding. Recommendations: We recommend that the School Unit implement internal control procedures to verify student removals from their cohorts. At a minimum, this should include management review and approval of all removals.

2024-002 – U.S. Department of Education, For the Period July 1, 2023 through June 30, 2024, Assistance Listing #84.425 Elementary and Secondary School Emergency Relief Fund Statement of Condition: Documentation of wage rate requirements in construction contracts was not performed. Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor. Management needs to ensure that all federally funded construction contracts contain language requiring that all contractors and subcontractors are submitting weekly certified payrolls and verify that they are being paid at least the prevailing wage rates. Cause: When performing our compliance testing, we discovered that construction contracts did not contain the prevailing wage rate clause. Effect: Employees could potentially not be paid prevailing wage rates which could jeopardize grant funding. Recommendation: Management needs to ensure that all construction contracts with contractors in excess of $2,000 have a prevailing wage rate clause. Questioned Costs: None

2022-002 ? U.S. Department of Agriculture, For the Period July 1, 2021 through June 30, 2022, Assistance Listing #10.553 ? #10.559 Child Nutrition Cluster Criteria: Accurate meal counts and reporting are required for the proper calculation of federal subsidy. Statement of Condition: During our testing of meal counts we noted numerous instances where meal counts did not tie to the amounts reported on claims forms. Cause: Clerical errors caused meal counts to be under or over-reported. Effect: The School Unit received too little or too much federal subsidy due to incorrect meal counts. Recommendation: Management should review and recalculate supporting documentation from the individual schools before including meal counts on monthly claim forms. Questioned Costs: None

2020-002 ? Child Nutrition Cluster (CFDA 10.553 ? 10.559) Eligibility Criteria: A child?s eligibility for free or reduced price meals under a Child Nutrition Cluster program may be established by the submission of an annual application or statement which furnishes such information as family income and family size. Local education agencies determine eligibility by comparing the data reported by the child?s household to published income eligibility guidelines. Statement of Condition: The School Unit currently uses annual applications to determine a child?s eligibility for free or reduced meals if that child is not determined to be eligible through other means (e.g., direct certification by the State). Cause: We noted two students that were receiving reduced meals that were ineligible based on their applications. We also noted one student that was receiving free meals, but was qualified for reduced meals based on their application. Effect: The School Unit is providing free or reduced meals to children who are not eligible based on income guidelines and being reimbursed for ineligible meals. Recommendation: We recommend that the School Unit ensure that students are properly classified based on their applications.

2020-003 ? Child Nutrition Cluster (CFDA 10.553 ? 10.559) Verification of Free and Reduced Price Applications Criteria: By November 15th of each school year, the local education agency (LEA) must verify the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals. The School Unit must follow-up on children whose eligibility status has changed as the result of verification activities to put them in the correct category. Statement of Condition: The School Unit did not properly change three student?s statuses to paid as required when the School Unit received information that indicates that the students were no longer are eligible for reduced meals. Effect: Three students should have been changed to paid but remained on reduced lunch fees even though the family?s income did not qualify them for reduced lunch. The School Unit is being reimbursed for ineligible meals. Cause: The School Lunch Director did not make the necessary changes to the free and reduced price student lists based on the results of the verification process. Recommendation: Management needs to ensure that after the verification process is complete, the School makes the necessary changes to the free and reduced lunch student lists.