Weld County School District RE-8

Criteria or Specific Requirement: The Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-Federal recipients and subrecipients must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance the award is in compliance with the Federal Statutes, regulations, and the terms and conditions of the Federal award.

Condition: The District's control over maintaining the monthly Eligibility Direct Certification reports for the School Breakfast, National School Lunch, and Summer Food Service Programs was not followed and insufficient documentation was retained. One instance in which annual eligibility determination was incorrect.

Questioned Costs: No

Context: A sample of 40 applications were selected for testing:

• 16 direct certification eligibility determinations were unable to be compared to the State’s direct certify reports.

• 1 annual eligibility determination was eligible under the 'Free' meal classification and was incorrectly classified as 'Paid'.

Cause: The District did not retain any of the State’s monthly direct certification reports. The District relied on their food service system for determination of eligibility instead of calculating it themselves resulting in an applicant not receiving the benefits they were entitled to.

Effect: Lack of documentation retention could result in students receiving benefits they are not entitled to or students not receiving benefits that they are entitled.

Repeat Finding: No

Recommendation: We recommend the District retain all direct certification reports from the State and for the District to review applications submitted electronically through food service system to determine correct eligibility determination is made.

Views of Responsible Officials: There is no disagreement with the audit finding.

Criteria or Specific Requirement: Appendix VII to Part 200 - Indirect costs are normally charged to Federal awards by the use of an indirect cost rate. A separate indirect cost rate is usually necessary for each department or agency of the unit claiming indirect costs under Federal Awards.

Condition: Indirect costs were calculated using a rate of 28.58% which exceeded allowable rate of 28.39%.

Questioned Costs: $967.88

Context: Comparison of the actual indirect rate calculated by fiscal 2023 expenses compared to the allowed indirect rate.

Cause: The District relied on CDE website for calculation of indirect cost rate instead of calculating it themselves resulting in an incorrect rate being applied.

Effect: Indirect costs reimbursed were more than allowable rate.

Repeat Finding: No

Recommendation: We recommend the District review its indirect cost journal entry after verifying all direct journal entries are posted and total indirect costs for the three year grant are within the allowable amount.

Views of Responsible Officials: There is no disagreement with the audit finding.