FAC Explorer

Audit 174605

FY End
2022-06-30
Total Expended
$2.68M
Findings
8
Programs
10
Organization: Pine River Area Schools (MI)
Year: 2022 Accepted: 2022-12-07
Auditor: Baird Cotter & Bishop PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
205950 2022-001 - Yes N
205951 2022-001 - Yes N
205952 2022-001 - Yes N
205953 2022-001 - Yes N
782392 2022-001 - Yes N
782393 2022-001 - Yes N
782394 2022-001 - Yes N
782395 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $485,956 - 1
84.010 Title I Grants to Local Educational Agencies $308,704 - 0
10.553 School Breakfast Program $201,776 - 1
84.367 Improving Teacher Quality State Grants $62,053 - 0
84.424 Student Support and Academic Enrichment Program $15,304 - 0
10.559 Summer Food Service Program for Children $13,841 - 1
93.778 Medical Assistance Program $7,370 - 0
10.665 Schools and Roads - Grants to States $4,010 - 0
84.425 Education Stabilization Fund $4,000 Yes 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
JMC9JUTQ37M5 Charlotte Butkovich Auditee
2318764837 Scott Hunter Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass through entity identifying numbers are presented where available. Pine River Area Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Pine River Area Schools under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Pine River Area Schools, it is not intended to and does not present the financial position, changes in net position, or cash flows of Pine River Area Schools.
Title: GRANT AUDITOR REPORT Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass through entity identifying numbers are presented where available. Pine River Area Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Management has utilized the NexSys, Cash Management System (CMS), and the Grant Auditor Report in preparing the schedule of expenditures of federal awards. The District does not pass-through federal funds to sub recipients.
Title: RECONCILIATION OF REVENUES WITH EXPENDITURES FOR FEDERAL FINANCIAL ASSISTAN Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass through entity identifying numbers are presented where available. Pine River Area Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SEE TABLE IN NOTES TO SEFA.
Title: RECONCILIATION OF GRANT AUDITOR REPORT WITH SCHEDULE OF EXPENDITURES OF FED Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass through entity identifying numbers are presented where available. Pine River Area Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Management has utilized the Cash Management System (CMS) Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards. SEE TABLE IN NOTES TO SEFA.

Finding Details

Finding 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number(s): 10.553, 10.555 & 10.559 Federal Award Number: 210904, 211971, 221971, 911961, 221961, 221965 (COVID-19) Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the summer food service program. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $337,865 at fiscal year-end exceeded the allowable three months of expenditures threshold by $110,033. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director has a spend down plan in place and is purchasing equipment to spend down the remaining excess. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number(s): 10.553, 10.555 & 10.559 Federal Award Number: 210904, 211971, 221971, 911961, 221961, 221965 (COVID-19) Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the summer food service program. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $337,865 at fiscal year-end exceeded the allowable three months of expenditures threshold by $110,033. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director has a spend down plan in place and is purchasing equipment to spend down the remaining excess. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number(s): 10.553, 10.555 & 10.559 Federal Award Number: 210904, 211971, 221971, 911961, 221961, 221965 (COVID-19) Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the summer food service program. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $337,865 at fiscal year-end exceeded the allowable three months of expenditures threshold by $110,033. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director has a spend down plan in place and is purchasing equipment to spend down the remaining excess. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number(s): 10.553, 10.555 & 10.559 Federal Award Number: 210904, 211971, 221971, 911961, 221961, 221965 (COVID-19) Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the summer food service program. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $337,865 at fiscal year-end exceeded the allowable three months of expenditures threshold by $110,033. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director has a spend down plan in place and is purchasing equipment to spend down the remaining excess. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number(s): 10.553, 10.555 & 10.559 Federal Award Number: 210904, 211971, 221971, 911961, 221961, 221965 (COVID-19) Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the summer food service program. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $337,865 at fiscal year-end exceeded the allowable three months of expenditures threshold by $110,033. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director has a spend down plan in place and is purchasing equipment to spend down the remaining excess. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number(s): 10.553, 10.555 & 10.559 Federal Award Number: 210904, 211971, 221971, 911961, 221961, 221965 (COVID-19) Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the summer food service program. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $337,865 at fiscal year-end exceeded the allowable three months of expenditures threshold by $110,033. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director has a spend down plan in place and is purchasing equipment to spend down the remaining excess. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number(s): 10.553, 10.555 & 10.559 Federal Award Number: 210904, 211971, 221971, 911961, 221961, 221965 (COVID-19) Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the summer food service program. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $337,865 at fiscal year-end exceeded the allowable three months of expenditures threshold by $110,033. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director has a spend down plan in place and is purchasing equipment to spend down the remaining excess. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number(s): 10.553, 10.555 & 10.559 Federal Award Number: 210904, 211971, 221971, 911961, 221961, 221965 (COVID-19) Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the summer food service program. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $337,865 at fiscal year-end exceeded the allowable three months of expenditures threshold by $110,033. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director has a spend down plan in place and is purchasing equipment to spend down the remaining excess. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.