Mammoth Unified School District

Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education Program Name: Child Nutrition Cluster Federal Financial Assistance Listing: 10.553, 10.555 Compliance Requirement: I – Procurement, Suspension, and Debarment Type of Finding: Material Weakness, Material Noncompliance Criteria or Specific Requirements Title 2, Code of Federal Regulations (CFR), Part 200, Subpart D, Section 200.318(a) and the District’s board policy number 3230 requires recipients and subrecipients of Federal awards to maintain and use documented procurement procedures that conform to standards identified in Title 2, CFR, Part 200, Subpart D, Section 200.318. This includes the retention of all procurement related documents in connection with federal awards. Condition The District was unable to provide procurement documents, including copies of bid documents and quotes from adequate number of qualified sources for sampled covered transactions. Cause The condition appears to have materialized due to the District not adhering to its federal procurement policy. Effect The District did not comply with general procurement standards required by Title 2, CFR Section 200.318(a) and the District board policy number 3230. Questioned Costs There were no questioned costs identified related to the condition identified above. Context/Sampling The condition was identified during the course of our review of supporting documents and our inquiry with District’s personnel. Two of two vendors were selected for testing. Repeat Finding Yes, see prior year finding 2023-002. Recommendation The District should ensure that all federal procurement transactions are aligned with its board policy number 3230. As required under the District’s procurement policy, the District should retain all procurement related documents.

50000 – Child Nutrition Cluster (Material Weakness, Material Noncompliance) Federal Program Affected Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: Eligibility Criteria or Specific Requirement The District is reimbursed for meals served to students eligible for free or reduced pricing. The reimbursement rates depend on how the student is classified. (7 CFR sections 245.2, 245.3, and 245.6; section 9(b)(1) of the NSLA (42 USC 1758 (b)(1)); sections 3(a)(6) and 4(e) of the CAN (42 USC 1772(a)(6) and 1773(e))). A child’s eligibility for free or reduced priced meals under a Child Nutrition Cluster program may be established by the submission of an annual application. Children belonging to households meeting income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced priced school meals pay the full price, set by the District, for their meals. (7 CFR sections 225.15(f), 245.1(a), and 245.3(c); definition of “subsidized lunch (paid lunch)” at 7 CFR section 210.2). Condition Eight students were noted to be classified as being free; however, the District was unable to provide supporting documentation for these students. Questioned Costs Questioned costs associated with this condition was identified as $4,009, which represents the excess reimbursement received by the District that is associated with the unsupported audit samples. Likely questioned costs are $27,565. Context We selected a sample of 60 and eight exceptions were noted. Effect The monthly meal claims were inaccurately prepared. Cause The District lacked sufficient procedures for maintaining income verification forms or direct certification information, leading to a deficiency in ensuring that students meeting the income eligibility requirements were retained for audit support. Repeat Finding No. Recommendation Personnel responsible for compliance in this area should ensure that all student records are updated timely based on the review of income eligibility forms or direct certification information.

50000 – Child Nutrition Cluster (Material Weakness, Material Noncompliance) Federal Program Affected Federal Agency: U.S. Department of Agriculture Pass-Through Entity: California Department of Education Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Compliance Requirement: Procurement, Suspension, and Debarment Criteria or Specific Requirement Title 2, Code of Federal Regulations (CFR), Part 200, Subpart D, Section 200.318(a) requires recipients and subrecipients of Federal awards to maintain and use documented procurement procedures that conform to standards identified in Title 2, CFR, Part 200, Subpart D, Section 200.318. This includes the retention of all procurement related documents in connection with federal awards. Condition The District was unable to provide procurement documents, including copies of bid documents and contracts for sampled covered transactions. Questioned Costs There were no questioned costs identified related to the condition identified above. Context The condition was identified during the course of our review of supporting documents and our inquiry with District’s personnel. Effect The District did not comply with general procurement standards required by Title 2, CFR Section 200.318(a) and the District board policy number 3230. Cause The condition appears to have materialized due to the District not adhering to its federal procurement policy. Repeat Finding No. Recommendation The District should ensure that all federal procurement transactions are aligned with its board policy number 3230. As required under the District’s procurement policy, the District should retain all procurement related documents.