INDEPENDENT SCHOOL DISTRICT #741

Finding 2021-007 Internal Controls over Meals Claimed Federal Program: CFDA 10.555/10.559 Child Nutrition Cluster Condition: The District failed to properly prepare and retain documentation to corroborate the number of meals served during the year and claimed for reimbursement under this program. Criteria: The District is required to accurately monitor, record, and report the numbers of meals that were served, to ensure Federal funding received under this program is appropriate. Cause: The District had not established appropriate controls to ensure the number of meals being reported via CLICS is supported by internal point of sale records. Effect: The failure to retain documentation for meals served resulted in a lack of support for the specific number of meals served that were reported to the State for funding under this program. Context: Meals served and related submissions for reimbursement were reviewed for four months from the fiscal year under audit. In aggregate for these four months, internal documentation indicated the 27,176 breakfast meals and 47,205 lunch meals had been served. The number of meals reported via CLICS for these months totaled 27,604 and 48,411 for breakfast and lunch, respectively. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend the District evaluate current procedures for accurately monitoring, recording, and reporting the number of meals served and ensure proper documentation is retained supporting all reports submitted to the State. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.

Finding 2021-007 Internal Controls over Meals Claimed 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding The District has already implemented new controls over the process for reporting meals to the State, in response to this finding. The District is now obtaining internal POS reports and other documentation as necessary and providing this full documentation to the individual completing the reporting. Such documentation is now being stored with a record of the corresponding submissions. 3. Official Responsible Ms. Janell Bullard, Superintendent, is the official responsible for ensuring corrective action. 4. Planned Completion Date June 30, 2022. 5. Plan to Monitor Completion The Board of Education will be monitoring this Corrective Action Plan.