Unified School District No. 203, Piper

Eligibility for Benefits - Child Nutrition Program (Significant Deficiency) Federal Agency: United States Department of Agriculture Program Name: Child Nutrition Program Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Award Period: Year ended June 30, 2025 Criteria: Under the Child Nutrition Program requirements, the District must maintain complete documentation to justify student eligibility. This includes collecting signed applications and performing an accurate evaluation of household income against federal eligibility guidelines. Condition: We have determined that the District failed to maintain a required application for one student and incorrectly approved another student whose household income exceeded the federal eligibility limits of the benefits being received. Cause: The District’s policies and procedures were not in place and working properly to ensure that all applications were archived and the income evaluation steps were accurately performed. Context: Out of twenty students tested for eligibility, one application for eligibility was not maintained and one file contained incorrect income evaluation. Effect: Benefits were provided to students who either lacked supporting documentation or did not meet the income eligibility limits of benefits received. Recommendation: We recommend that Board of Education and management evaluate the controls over the eligibility process to ensure that the process is being followed and implemented correctly and ensure that there is compliance with guidelines. Questioned Costs: None Repeat Finding: No Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to evaluate the current process to determine how controls over compliance can be strengthened to ensure that documentation is maintained and family income is accurately evaluated in correlation with the income eligibility guidelines.

2024-004 Preparation of and Internal controls over Schedule of Expenditures of Federal Awards Preparation (Material Weakness) Federal Agency: U.S Department of Education Pass through entity: Kansas Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Award Period: June 30, 2024 Criteria: According to 2 CFR 200, Subpart F, the District is required to prepare a schedule of federal expenditures, which must include the total federal awards expended as determined in accordance with §200.502. An effective internal control system exists if controls are effective in preventing or detecting material misstatements in the preparation of the schedule of federal expenditures of federal awards (the schedule). It provides reasonable assurance for the reliability of financial information and compliance with laws and regulations. Condition: We have determined that there was an inadequate design of internal control over the preparation of the schedule during the fiscal year ended June 30, 2024. The current financial reporting process does not ensure accuracy and completeness in the preparation of the schedule by the District, as required by Uniform Guidance. Cause: The District’s policies and procedures were not designed to ensure the District’s preparation of the schedule in conformity with Uniform Guidance. Effect: The District did not prepare a complete and accurate schedule in conformity with Uniform Guidance as significant modifications were required. This increases the likelihood of a material misstatement and noncompliance with laws and regulations. Recommendation: We recommend the Board of Education and management review the financial reporting process. Once this review is complete, the District should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure that the District prepares the schedule conformity with Uniform Guidance. Questioned Costs: None. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies and procedures for the internal control over compliance to ensure accuracy and completeness in the District’s preparation of the schedule as required by Uniform Guidance.

2023-004 Preparation of and Internal controls over Schedule of Expenditures of Federal Awards Preparation (Material Weakness) Federal Agency: U.S Department of Education Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Award Period: June 30, 2023 Criteria: According to 2 CFR 200, Subpart F, the District is required to prepare a schedule of federal expenditures, which must include the total federal awards expended as determined in accordance with §200.502. An effective internal control system exists if controls are effective in preventing or detecting material misstatements in the preparation of the schedule of federal expenditures of federal awards (the schedule). It provides reasonable assurance for the reliability of financial information and compliance with laws and regulations. Condition: We have determined that there was an inadequate design of internal control over the preparation of the schedule during the fiscal year ended June 30, 2023. The current financial reporting process does not ensure accuracy and completeness in the preparation of the schedule by the District, as required by Uniform Guidance. Cause: The District’s policies and procedures were not designed to ensure the District’s preparation of the schedule in conformity with Uniform Guidance. Effect: The District did not prepare a complete and accurate schedule in conformity with Uniform Guidance as significant modifications were required. This increases the likelihood of a material misstatement and noncompliance with laws and regulations. Recommendation: We recommend the Board of Education and management review the financial reporting process. Once this review is complete, the District should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure that the District prepares the schedule conformity with Uniform Guidance. Questioned Costs: None. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies and procedures for the internal control over compliance to ensure accuracy and completeness in the District’s preparation of the schedule as required by Uniform Guidance.

2021-002 Required Documentation of Number of Meals Served (Material Weakness) Federal Agency: USDA, Food and Nutrition Service Program Name: Child Nutrition Cluster: National School Lunch Program and Summer Food Service Program for Children Assistance Listing Number: CFDA 10.555, CFDA 10.559 Compliance Requirement: Program Income Questioned Costs: Not determinable. Award Period: Year ended June 30, 2021 Criteria: Cash reimbursements are provided by the State of Kansas based upon each meal served under the National School Lunch Program and the Summer Food Service Program for Children, which is reported to the State by the participating District. Condition: Audit tests were unable to ascertain that amounts submitted to the State for reimbursement were accurate. Two of the 10 months submitted were tested and tests noted that the amounts submitted for breakfast were more than those noted on the count sheets and that lunches submitted were less than noted on count sheets. Cause: Audit tests revealed that count sheets were either not retained by the District or not properly maintained as to support the amounts submitted for reimbursement for breakfast and lunch meals served. It was further noted that submissions were not properly monitored or reviewed to ensure accuracy of amounts reported. Effect or Potential Effect: Based on testing, it was determined that the District may have submitted incorrect amounts for breakfast and lunch meals served. Further, it is possible that the District received less reimbursement than it qualified for. Recommendation: We recommend that the District put in place a process to review submissions prior to finalizing and that all documentation be retained to support submitted amounts. Views of Responsible Officials: Management agrees with the finding and will implement procedures that will ensure the documentation and submissions are retained and reviewed prior to final submission.