INDEPENDENT SCHOOL DISTRICT #2909, ROCK RIDGE PUBLIC SCHOOLS

Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. The District has five different food sites. We noted in one month that the District submitted two food sites monthly reimbursement reports with the other food site’s information. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The District received reimbursements for incorrect meals. Repeat Finding Yes. See prior audit finding 2024-006. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.

Material Weakness in Internal Control Federal Program Education Stabilization Fund (AL 84.425U) Activities Allowed/Unallowed, Allowable Costs/Cost Principles Criteria A system of internal controls requires the review and signature of approval from the Superintendent on all purchase orders and all journal entry transactions requires the review and sign off by finance and payroll assistant Condition Two purchase orders were not signed by the Superintendent. Journal entry transactions were not reviewed or signed off on by anyone. Questioned Costs None Context A sample of 18 vendor disbursements were selected for testing. Two disbursements were not approved by the superintendent. We also noted journal entries charging expenses to the program lacked review and approval. Cause Management oversight. Effect The District has an increased risk of not being in compliance with federal activities allowed/unallowed and allowable costs/cost principles. Repeat Finding No. Recommendation The District should implement policies and procedures to establish a set dollar threshold for the purchase price that the Superintendent would need to sign on the purchase orders. They also need to establish a formal review and approval process for journal entry transactions. Views of Responsible Officials The District agrees with the recommendation.

Deficiency in Internal Control and Compliance Federal Program Child Nutrition Cluster (AL 10.553, 10.555, 10.559) Reporting Criteria Federal compliance requirements state that auditors are to trace amounts reported in a financial report to the accounting records. Furthermore, a system of internal control has all reports reviewed and approved before they are submitted for reimbursement. Condition During testing of the District’s reimbursement reports, we noted the District over submitted for meals served and there is no review or approval of monthly reimbursement reports before submission. Questioned Costs Not Applicable Context We sampled 3 months of reports submitted for reimbursement in the food service department. We noted in one month that the district over reported 67 breakfasts and 86 lunches. During internal control inquiry, we noted that there is no formal review and approval before a report is submitted for reimbursement. Cause Management oversight. Effect The district is at risk of errors when requesting reimbursement for meals served. Repeat Finding No. Recommendation The District should implement policies and procedures to ensure reports submitted are accurate. Views of Responsible Officials The District agrees with the recommendation.