Independent School District No. 116Local Government

Finding 2025-004 School Nutrition Program Meal Claims Federal Program: ALN 10.553/10.555 Child Nutrition Cluster Condition: The District failed to properly report the number of student meals that were served and reported to the State via CLiCS, for which Federal funding was received. Criteria: The District 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 rates the District receives for meals served. Cause: The District incorrectly reported free and reduced meals under the paid meal category in their CLiCS submission to the State. Effect: The failure to properly categorize free and reduced meals resulted in the District incorrectly receiving State reimbursements for free and reduced meals rather than those meals being reimbursed by Federal aid. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District 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 2024-004 School Nutrition Program Meal Claims Federal Program: CFDA 10.553/10.555 Child Nutrition Cluster Condition: The District failed to properly report the number of student meals that were served and reported to the State via CLiCS, for which Federal funding was received. Criteria: The District 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 rates the District receives for meals served. Cause: The District incorrectly reported free and reduced meals under the paid meal category in their CLiCS submission to the State. Effect: The failure to properly categorize free and reduced meals resulted in the District incorrectly receiving State reimbursements for free and reduced meals rather than those meals being reimbursed by Federal aid. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend that the District 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 2023-004 Support for Free and Reduced Meal Applications Federal Program: CFDA 10.553/10.555 Child Nutrition Cluster Condition: The District failed to retain or locate support for various applications for certain students receiving free meals. Criteria: The District is required to obtain and retain support for all student free and reduced meal applications to ensure only eligible students are receiving free and reduced meals. Cause: The District does not have appropriate procedures in place to ensure all applications are properly retained in the records of the District. Effect: The failure to retain support for applications for students receiving free meals could potentially result in a free or reduced meal status to students who were not qualified. Questioned Costs: None. The maximum potential impact was below the reportable threshold under Uniform Guidance. Recommendation: We recommend management adopt policies and procedures under which all applications for free and reduced meals are retained in the District’s records. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.

Finding 2023-005 Food Service Commodities Condition: The revenues recognized by the District for commodities received under the USDA Food Distribution Program were substantially less than the amount that the Minnesota Department of Education (MDE) reported as being remitted to the District (or to the District’s food service provider). Criteria: The District is required to implement controls to ensure that value of commodities provided under the Food Distribution Program is both received by the District and properly reported. Cause: The District’s contracted food service provider (FSP) receives commodities through the Food Distribution Program on behalf of the District. When commodities are received by the FSP, the FSP applies credits the invoices sent to the District, to represent the value of the commodities received. For the year ended June 30, 2023, the credits received by the District on these invoices totals $49,748. However, the MDE has reported commodities with an aggregate value of $62,538 as being remitted for the District. Effect: The lack of controls surrounding the commodities received or reported through the Food Distribution Program could result in either the loss or misreporting of entitlements provided to the District. Recommendation: We recommend management discuss this matter in further depth with the contracted food service provider and establish controls to ensure that all food service commodity entitlements are being properly realized and reported by the District. Views of Responsible Officials and Planned Corrective Actions: Management agrees with our recommendation. See corresponding Corrective Action Plan.