{"database": "mytown-research", "table": "audit_findings", "rows": [[49, "wa-sao", "1021387", "2017-001", null, "WA", "Quincy School District No 144", "School District", "1873", null, "no_match", "Washington State Auditor's Office", "Financial and Federal audit \u2014 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 \nThe District participates in the School Breakfast, National School Lunch and \nSummer Food Service programs , which provide free and reduced -price meals for \nstudents from low -income families. It received $1,423,221 from these programs \nduring the 2016 -2017 school year. Families must meet income guidelines to be \neligible for these programs. \nEach year, districts must select a sample of applicants and verify that the family \nincome information reported to the district is correct. The Office of Superintendent \nof Public Instruction (OSPI) ins tructs school districts on how to verify program \neligibility. Districts must review selected applicants\u2019 income documentation and \nconfirm students are receiving correct benefits of free or reduced -price meals. \nOtherwise, the student is not eligible and must pay for meals at full price. \n \n \nWashington State Auditor's Office\n___________________________________________________________________________________________________________________\n \n \nDescription of Condition \nThe District did not retain supporting documentation to demonstrate it performed \nthe required verification process. Therefore, we were not able to determine if the \nDistrict complied with this requirement. \nWe consider this internal control deficiency to be a material weakness. \nThis issue was reported as a finding in the prior audit as finding 2016-001. \nCause of Condition \nOur prior audit reported non-compliance with verification requirements; however, \nthe audit occurred after the verification deadline for the 2016-17 school year. As a \nresult, the District was unable to implement audit recommendations before it \ncompleted the 2016 -2017 verification process. The cause of the prior audit issue \nwas that the District assigned inexperienced staff to the program and did not provide \nadequate oversight. \nEffect of Condition and Questioned Costs \nA lack of proper internal controls over the verification process increases the risk \nthat free or reduced-price meals could be provided to children who are not eligible \nto receive them. The District could receive funding for households that do not \nqualify for free and reduced -price meals. Because the District did not retain \ndocumentation to support its verification process, it cannot demonstrate it verified \nthat family income information was accurately reported for the number of \napplications required by the programs. \nRecommendation s \nWe continue to recommend the District: \n\uf0b7 Train staff regarding federal child nutrition program verification \nrequirements \n\uf0b7 Establish internal controls and adequate oversight to confirm that the \nannual verification process is completed properly and quickly \n\uf0b7 Retain adequate documentation to demonstrate compliance with \nverification requirements \n \n \nWashington State Auditor's Office\n___________________________________________________________________________________________________________________\n \n \nDistrict \u2019s Response \nThe District has hired a Food Service Clerk position with a portion of the position \nbeing dedicated to fulfilling the Verification Process. This position will have \ncontinued training by OPSI, other districts and internal staff. Distric t office staff \nwill oversee that eligibility and verification processes to ensure that they are being \ncompleted timely and accurately. \nAuditor\u2019s Remarks \nWe appreciate the District\u2019s commitment to resolving the issues noted and will \nfollow up during the next audit. \nApplicable Laws and Regulations \nThe American Institute of Certified Public A ccountants defines significant \ndeficiencies and material weaknesses in its Codification of Statements on Auditing \nStandards, section 935, Compliance Audits, paragraph 11. \nTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative \nRequirements, Cost Principles, and Audit Requirements for Federal Awards \n(Uniform Guida nce), section 516 Audit findings, establishes r eporting \nrequirements for audit findings. \nTitle 2 CFR Part 200, Uniform Guidance, section 303 describes the requirements \nfor auditees to maintain internal controls over federal programs and comply with \nfederal program requirements. \nTitle 7 CFR Part 245, Determining Eligibility for Free and Reduced Price Meals \nand Free Milk in Schools , Section 6a, Verification requirements, establishes \nrequirements for verifying eligibility of children for free and reduced price meal \nbenefits. \n \n \nWashington State Auditor's Office\n___________________________________________________________________________________________________________________", "https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021387&isFinding=false&sp=false", "2026-07-30 13:24:54"]], "columns": ["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"], "primary_keys": ["rowid"], "primary_key_values": ["49"], "units": {}, "query_ms": 18.7698430090677, "source": "MyTown", "source_url": "https://mytown.theboringparts.com", "license": "CC BY 4.0", "license_url": "https://creativecommons.org/licenses/by/4.0/"}