FAC Explorer

Audit 19639

FY End
2022-06-30
Total Expended
$2.25M
Findings
8
Programs
11
Organization: Meridian Public Schools (MI)
Year: 2022 Accepted: 2022-10-30
Auditor: Roslund Prestage & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
21786 2022-001 Material Weakness Yes N
21787 2022-001 Material Weakness Yes N
21788 2022-001 Material Weakness Yes N
21789 2022-001 Material Weakness Yes N
598228 2022-001 Material Weakness Yes N
598229 2022-001 Material Weakness Yes N
598230 2022-001 Material Weakness Yes N
598231 2022-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $284,188 Yes 1
84.010 Title I Grants to Local Educational Agencies $191,151 - 0
32.009 Emergency Connectivity Fund Program $155,566 - 0
10.559 Summer Food Service Program for Children $74,775 Yes 1
84.367 Improving Teacher Quality State Grants $73,599 - 0
10.555 National School Lunch Program $38,845 Yes 1
10.558 Child and Adult Care Food Program $38,349 - 0
84.425 Education Stabilization Fund $28,051 - 0
84.424 Student Support and Academic Enrichment Program $13,564 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0
84.196 Education for Homeless Children and Youth $367 - 0

Contacts

Name Title Type
FEXXK977ZMN3 Sarah Glann Auditee
9896873200 Christina Schaub 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. Meridian Public Schools has elected to not 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 award activity of Meridian Public 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Meridian Public Schools, it is not intended to and does not present its financial position or changes in net position of Meridian Public Schools.Management has utilized the Nexsys cash management system and the Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards. The District does not pass through federal funds.
Title: RECONCILIATION WITH AUDITED FINANCIAL STATEMENTS 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. Meridian Public Schools has elected to not 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. Federal expenditures are reported as revenues in the following funds in the financial statements of Meridian Public Schools:FundAmountGeneral Fund1,306,328Food Service Fund1,090,1842014 Capital Projects142,870 Total federal revenues per financial statements2,539,382Less: Federal assistance funding not subject to single audit(286,154) Adjusted federal revenues subject to single audit2,253,228

Finding Details

Finding 2022-001
Finding 2022-001 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / Material Noncompliance ? Special Tests and Provisions Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $213,867. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding. The district is now working on a spend down plan to enhance the Food Service Program.
Finding 2022-001
Finding 2022-001 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / Material Noncompliance ? Special Tests and Provisions Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $213,867. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding. The district is now working on a spend down plan to enhance the Food Service Program.
Finding 2022-001
Finding 2022-001 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / Material Noncompliance ? Special Tests and Provisions Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $213,867. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding. The district is now working on a spend down plan to enhance the Food Service Program.
Finding 2022-001
Finding 2022-001 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / Material Noncompliance ? Special Tests and Provisions Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $213,867. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding. The district is now working on a spend down plan to enhance the Food Service Program.
Finding 2022-001
Finding 2022-001 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / Material Noncompliance ? Special Tests and Provisions Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $213,867. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding. The district is now working on a spend down plan to enhance the Food Service Program.
Finding 2022-001
Finding 2022-001 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / Material Noncompliance ? Special Tests and Provisions Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $213,867. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding. The district is now working on a spend down plan to enhance the Food Service Program.
Finding 2022-001
Finding 2022-001 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / Material Noncompliance ? Special Tests and Provisions Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $213,867. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding. The district is now working on a spend down plan to enhance the Food Service Program.
Finding 2022-001
Finding 2022-001 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / Material Noncompliance ? Special Tests and Provisions Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $213,867. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding. The district is now working on a spend down plan to enhance the Food Service Program.