Athlos Leadership AcademyLocal Government

Finding 2024-001 Child Nutrition Program Meal Claims Federal Program: ALN 10.553/10.555 Child Nutrition Cluster Condition: For the month of November 2023, there were errors in the type of student meals reported by the Academy to the State via CLiCS. As a result of these errors, free and reduced meals were under-reported and regular/paid meals were over-reported. Criteria: The Academy is required to accurately monitor, record, and report the numbers of meals that were served to students, including how many of these meals were served to students with a free or reduced status. This reporting determines State and Federal reimbursement amounts the Academy receives for meals served. Cause: The internal controls over reporting established by the Academy were insufficient to properly prevent, or detect and correct, errors in the reporting of Student meals. Effect: The failure to properly categorize free and reduced meals resulted in the Academy receiving State reimbursements for free and reduced meals, rather than those meals being reimbursed by Federal aid. Questioned Costs: None. The error resulted in less Federal funding be provided to the Academy. Recommendation: We recommend that the Academy evaluate current procedures for accurately monitoring, recording, and reporting the number of meals served and ensure proper meal counts are reported to the State. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.

Finding Number: 2020-001 Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster CFDA Numbers: 10.553, 10.555, 10.556, and 10.559 Pass Through Agency: Minnesota Department of Agriculture Award Periods: Year ended June 30, 2020 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria: The District should have proper procedures and controls in place to ensure that all student applications for meal eligibility are reviewed and eligibility is properly determined. Condition: During testing of the eligibility determinations of students applying to received free or reduced lunch we noted an error in eligibility determinations. Questioned Costs: None reported. Context: We tested a statistically valid sample of 40 students and of the 40 we noted 1 student whose eligibility was incorrectly calculated as free when it should have been determined that they were eligible for reduced price meals. Cause: The district did not include the student's income when assessing eligibility. Effect: Student eligibility determinations were incorrect and the student did not receive the appropriately priced meals Recommendation: We recommend that the District review its procedures and reviews over eligibility determinations to help ensure future errors are not made and all determinations are reviewed. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: Contact Person Jenny Abbs Corrective Action Planned The corrective action plan was implemented in November of 2020, to ensure that these procedures are followed for Fiscal Year 2020-2021. Anticipated Completion Date June 30, 2021

Finding Number: 2020-002 Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster CFDA Numbers: 10.553, 10.555, 10.556, and 10.559 Pass Through Agency: Minnesota Department of Agriculture Award Periods: Year ended June 30, 2020 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: During testing of the suspension and debarment, it was noted that there was no documentation of the suspension and debarment check performed by the school. Questioned Costs: None reported. Context: We tested a statistically valid sample of two vendors who had over $25,000 in procurement in FY20, noting there was no documentation that the school ensured they weren?t debarred. Cause: The district did not have documentation of any suspension or debarment checks. Effect: Vendors over the $25,000 procurement threshold weren't tested if they were suspended or debarred. Recommendation: We recommend that the District review its procedures and reviews over ensuring vendors aren't suspended or debarred and retaining documentation that this check was performed. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: Contact Person Jenny Abbs Corrective Action Planned The corrective action plan was implemented in November of 2020, to ensure that these procedures are followed for Fiscal Year 2020-2021. Anticipated Completion Date June 30, 2021