ESTACADA SCHOOL DISTRICTLocal Government

SA-2025-02 – SIGNIFICANT DEFICIENCY FEDERAL AWARD PROGRAM: 10.553, 10.555, 10.559 Child Nutrition Cluster SPECIFIC REQUIREMENT: Federal reimbursement claims are required to be reviewed by a person other than the preparer. CONDITION: During testing of National School Lunch Program (NSLP) reimbursement claims, we noted that claims were submitted without evidence of review prior to submission. In addition, any reviews that may have occurred were not consistently documented. CRITERIA: NSLP reimbursement claims should be reviewed and approved by an individual independent of the preparer prior to submission, and the review should be documented. EFFECT: Without documented controls to ensure NSLP claims are reviewed prior to submission, there is an increased risk that claims may be submitted with errors or inconsistencies, which could impact compliance with federal program requirements. CAUSE: The finance office and food services department experienced turnover during the fiscal year under audit, which contributed to inconsistent review and documentation practices. RECOMMENDATION: We recommend the District assign an individual other than the claim preparer to review NSLP reimbursement claims prior to submission and maintain documentation of that review. VIEWS OF RESPONSIBLE OFFICIALS: The District acknowledges the importance of ensuring National School Lunch Program (NSLP) reimbursement claims are reviewed by an individual other than the preparer and that this review is properly documented. During the fiscal year ended June 30, 2025, staffing turnover and competing workload demands contributed to an inconsistency in the documented review process prior to claim submission. Management agrees with the recommendation and has already implemented corrective actions to strengthen oversight and documentation. The District has assigned an independent reviewer to review NSLP claims prior to submission and has implemented a standardized process to document the review and approval. In addition, the District will continue to reinforce written procedures and cross-training to support consistency and continuity. The District is committed to maintaining compliance with federal program requirements and ensuring these controls remain in place going forward.

SA-2024-03 – SIGNIFICANT DEFICIENCY FEDERAL AWARD PROGRAM: 10.553, 10.555, 10.559 Child Nutrition Cluster SPECIFIC REQUIREMENT: Federal reimbursement claims are required to be reviewed by a person other than the preparer. CONDITION: We noted in our testing of NSLP claims that claims were not being reviewed before being submitted and any reviews that may have occurred were not documented. CRITERIA: NSLP claims should be reviewed before submission and reviews should be documented. EFFECT: Without controls in place to make sure NSLP claims are properly reviewed before being submitted, there exists the possibility of material misstatements in the financial statements. CAUSE: The finance office experienced turn over in the fiscal year under audit. RECOMMENDATION: We recommend the District use someone other than the claim preparer to review the claims before being submitted, and document said review with initials and date. VIEWS OF RESPONSIBLE OFFICIALS: The District did not practice a multi-step review of monthly Child Nutrition Program meal claims to the state. This has since been corrected, with monthly data input and review by the Director of Nutrition Services, and review and submission by the District's Director of Finance/Senior Accountant. This ensures that the numbers that are being submitted to the state are accurate with the numbers that are being recorded on a daily/monthly basis. This was implemented early in fiscal year.

SA-2024-04 - SIGNIFICANT DEFICIENCY FEDERAL AWARD PROGRAM: 10.553, 10.555, 10.559 Child Nutrition Cluster SPECIFIC REQUIREMENT: Federal reimbursement claims are required to be recorded to the correctfiscal year in the general ledger.CONDITION: We noted in our testing of NSLP reimbursements, the District recorded the May 2024 and June 2024 claims to the incorrect fiscal year. CRITERIA: NSLP claims should be recorded in the correct fiscal year. EFFECT: Without controls in place to make sure NSLP claims are recorded in the correct fiscal year, there exists the possibility of material misstatement to the financial statement and non compliance to the grant. CAUSE: The finance office experienced turn over in the fiscal year under audit. RECOMMENDATION: We recommend the District record reimbursements in the correct fiscal year. VIEWS OF RESPONSIBLE OFFICIALS: Reimbursements from the state for meal claims for the months of May and June were received in July 2024 (in the new fiscal year). Due to turnover in the District's business office, they were recorded when they were received (as revenue) rather than accounts receivable. Moving forward, the District will recognize meal reimbursement revenue in the fiscal year that it is for, and the proper amounts will be applied to the proper accounts, and confirmed via multi-step review. This will take affect starting in fiscal year 24-25.

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