audit_findings: 49
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| rowid | source | report_number | finding_number | muni_id | state | entity_name | entity_type | entity_ext_id | place_geoid | match_method | auditor | report_title | audit_type | fiscal_year | period_start | period_end | published_date | finding_category | severity | questioned_cost | cost_basis | finding_title | finding_text | report_url | fetched_at |
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| 49 | wa-sao | 1021387 | 2017-001 | WA | Quincy School District No 144 | School District | 1873 | no_match | Washington State Auditor's Office | Financial and Federal audit — Quincy School District No 144 | Financial and Federal | 2017 | 2016-09-01 | 2017-08-31 | 2018-05-24 | federal_award_compliance | material_weakness | 0.0 | Questioned Cost Amount: $0 | The District did not have adequate internal controls to ensure compliance with federal verification requirements. CFDA Number and Title: 10.553 School Breakfast Program 10.555 National School Lunch Program 10.559 Summer Food Service Program for Children Federal Grantor Name: U.S. Department of Agriculture (USDA) Federal Award/Contract Number: NA Pass-through Entity Name: Pass-through Award/Contrac | Background The District participates in the School Breakfast, National School Lunch and Summer Food Service programs , which provide free and reduced -price meals for students from low -income families. It received $1,423,221 from these programs during the 2016 -2017 school year. Families must meet income guidelines to be eligible for these programs. Each year, districts must select a sample of applicants and verify that the family income information reported to the district is correct. The Office of Superintendent of Public Instruction (OSPI) ins tructs school districts on how to verify program eligibility. Districts must review selected applicants’ income documentation and confirm students are receiving correct benefits of free or reduced -price meals. Otherwise, the student is not eligible and must pay for meals at full price. Washington State Auditor's Office ___________________________________________________________________________________________________________________ Description of Condition The District did not retain supporting documentation to demonstrate it performed the required verification process. Therefore, we were not able to determine if the District complied with this requirement. We consider this internal control deficiency to be a material weakness. This issue was reported as a finding in the prior audit as finding 2016-001. Cause of Condition Our prior audit reported non-compliance with verification requirements; however, the audit occurred after the verification deadline for the 2016-17 school year. As a result, the District was unable to implement audit recommendations before it completed the 2016 -2017 verification process. The cause of the prior audit issue was that the District assigned inexperienced staff to the program and did not provide adequate oversight. Effect of Condition and Questioned Costs A lack of proper internal controls over the verification process increases the risk that free or reduced-price meals could be provided to children who are not eligible to receive them. The District could receive funding for households that do not qualify for free and reduced -price meals. Because the District did not retain documentation to support its verification process, it cannot demonstrate it verified that family income information was accurately reported for the number of applications required by the programs. Recommendation s We continue to recommend the District: Train staff regarding federal child nutrition program verification requirements Establish internal controls and adequate oversight to confirm that the annual verification process is completed properly and quickly Retain adequate documentation to demonstrate compliance with verification requirements Washington State Auditor's Office ___________________________________________________________________________________________________________________ District ’s Response The District has hired a Food Service Clerk position with a portion of the position being dedicated to fulfilling the Verification Process. This position will have continued training by OPSI, other districts and internal staff. Distric t office staff will oversee that eligibility and verification processes to ensure that they are being completed timely and accurately. Auditor’s Remarks We appreciate the District’s commitment to resolving the issues noted and will follow up during the next audit. Applicable Laws and Regulations The American Institute of Certified Public A ccountants defines significant deficiencies and material weaknesses in its Codification of Statements on Auditing Standards, section 935, Compliance Audits, paragraph 11. Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guida nce), section 516 Audit findings, establishes r eporting requirements for audit findings. Title 2 CFR Part 200, Uniform Guidance, section 303 describes the requirements for auditees to maintain internal controls over federal programs and comply with federal program requirements. Title 7 CFR Part 245, Determining Eligibility for Free and Reduced Price Meals and Free Milk in Schools , Section 6a, Verification requirements, establishes requirements for verifying eligibility of children for free and reduced price meal benefits. Washington State Auditor's Office ___________________________________________________________________________________________________________________ | https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021387&isFinding=false&sp=false | 2026-07-30 13:24:54 |