ODESSA R-VII SCHOOL DISTRICT

2023-003 Child Nutrition Cluster - CFDA No. 10.553, 10.555 Grant No. 054-041 Condition: Odessa R-VII School District must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $405,902. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit. Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $405,902 based on the amounts in the fund balance of $721,268 above the three months operating costs of $315,366. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Views of Responsible Officials & Planned Corrective Action: The District will take action to reduce the food service balance in a timely fashion. The completion date for this corrective action is May 31, 2024.2023-002 Child Nutrition Cluster - CFDA No. 10.553, 10.555 Grant No. 042-124 Condition: Odessa R-VII School District must operate the food service program on a non-profit basis. The District's ending food service balance exceeded three months average expenses by $700,602. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit. Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $700,602 based on the amounts in the fund balance of $1,066,215 above the three months operating costs of $365,614. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Views of Since the $2,000,000 of local funds to totally remodeled the Responsible food service department at the Clinton Intermediate School Officials & Planned is not enough to offset the excess balance in the food service Corrective Action: department, our plan for reducing the program balance of an excess of $976,148.58 will be purchasing equipment and holding our contracted food service accountable for billing. During the fiscal year 2022/2023 Taher did not bill us for three months. They billed us in the 2023/2024 fiscal year

U.S. Department of Education Odessa R-VII School District respectfully submits the following Corrective Action Plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action: Jon Oetinger, Superintendent Odessa R-VII School District Independent Public Accounting Firm: Gerding, Korte & Chitwood, P.C., 723 Main Street, Boonville, MO 65233 Audit Period: Year ended June 30, 2023 The findings from the June 30, 2023, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Significant Deficiency 1023-003 Child Nutrition Cluster Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Action Taken: The District will take action to reduce the food service balance in a timely fashion. The completion date for this corrective action is May 31, 2024. Completion Date: June 30, 2024 Sincerely, Jon Oetinger, Superintendent Odessa R-VII School District

2020-003 Federal Grantor: All Federal Grantors listed on the SEFA Pass-Through Grantor: All Pass-Through Grantors listed on the SEFA Federal CFDA Number: All Federal CFDA Numbers listed on the SEFA Program Title: All Program Titles listed on the SEFA Award year: 2020 Type of Finding: Other Information ? Significant Deficiency Information on the federal program: The District must establish and maintain effective Internal Controls over Federal awards, regulations and the terms and conditions of the Federal awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) require the auditee to document Internal controls over federal awards. Condition: Through auditing procedures, we identified that the District has not prepared the required Internal Controls over federal awards that meet the requirement for Uniform Guidance. Questioned Costs: Not applicable Context: During the audit of federal programs, we discovered that the District has not prepared the required Internal Controls over federal awards. Effect: No Internal Controls over federal awards. Cause: The District has not prepared the required Internal Controls over federal awards. Recommendation: The District should implement procedures to ensure that the Internal Controls over federal awards are addressed going forward. Views of responsible officials and planned corrective actions: The Superintendent will request guidance from the district auditor to specifically identify and define the risk and develop corrective actions to mitigate identified risks for federal awards.

The Superintendent will request guidance from the district auditor to specifically identify and define the risk and develop corrective actions to mitigate identified risks for federal awards.

2020-004 Federal Grantor: All Federal Grantors listed on the SEFA Pass-Through Grantor: All Pass-Through Grantors listed on the SEFA Federal CFDA Number: All Federal CFDA Numbers listed on the SEFA Program Title: All Program Titles listed on the SEFA Award year: 2020 Type of Finding: Other Information ? Significant Deficiency Information on the federal program: The District must establish and maintain effective risk assessment over Federal awards, regulations and the terms and conditions of the Federal awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) require the auditee to document risk assessment over federal awards. Condition: Through auditing procedures, we identified that the District has not prepared the required risk assessment over federal awards that meet the requirement for Uniform Guidance. Questioned Costs: Not applicable Context: During the audit of federal programs, we discovered that the District has not prepared the required risk assessment over federal awards. Effect: No risk assessment over federal awards. Cause: The District has not prepared the required risk assessment over federal awards. Recommendation: The District should implement procedures to ensure that the risk assessment over federal awards is addressed going forward. Views of responsible officials and planned corrective actions: The Superintendent will request what risks were identified by the auditor followed by seeking information/recommendations from the district auditor as to what antifraud programs and controls are necessary to address identified risks for federal awards.

The Superintendent will request what risks were identified by the auditor followed by seeking information/recommendations from the district auditor as to what antifraud programs and controls are necessary to address identified risks for federal awards.