FAC Explorer

Audit 21338

FY End
2022-06-30
Total Expended
$4.29M
Findings
22
Programs
12
Organization: Chippewa Hills School District (MI)
Year: 2022 Accepted: 2022-10-31
Auditor: Roslund Prestage & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
16704 2022-002 Material Weakness Yes N
16705 2022-002 Material Weakness Yes N
16706 2022-002 Material Weakness Yes N
16707 2022-002 Material Weakness Yes N
16708 2022-002 Material Weakness Yes N
16709 2022-002 Material Weakness Yes N
16710 2022-002 Material Weakness Yes N
16711 2022-002 Material Weakness Yes N
16712 2022-002 Material Weakness Yes N
16713 2022-002 Material Weakness Yes N
16714 2022-002 Material Weakness Yes N
593146 2022-002 Material Weakness Yes N
593147 2022-002 Material Weakness Yes N
593148 2022-002 Material Weakness Yes N
593149 2022-002 Material Weakness Yes N
593150 2022-002 Material Weakness Yes N
593151 2022-002 Material Weakness Yes N
593152 2022-002 Material Weakness Yes N
593153 2022-002 Material Weakness Yes N
593154 2022-002 Material Weakness Yes N
593155 2022-002 Material Weakness Yes N
593156 2022-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $714,041 Yes 0
21.019 Coronavirus Relief Fund $326,193 - 0
10.553 School Breakfast Program $223,010 Yes 1
84.367 Improving Teacher Quality State Grants $50,234 - 0
84.060 Indian Education_grants to Local Educational Agencies $25,133 - 0
84.010 Title I Grants to Local Educational Agencies $19,806 - 0
93.778 Medical Assistance Program $9,789 - 0
84.424 Student Support and Academic Enrichment Program $4,422 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0
84.027 Special Education_grants to States $3,020 - 0
10.555 National School Lunch Program $2,943 Yes 1
10.559 Summer Food Service Program for Children $1,055 Yes 1

Contacts

Name Title Type
XD6NWHLC63N8 Slater Martin Auditee
9899672016 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. Chippewa Hills School District 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 Chippewa Hills School District 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 Chippewa Hills School District, it is not intended to and does not present its financial position or changes in net position of Chippewa Hills School District.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. Chippewa Hills School District 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 Chippewa Hills School District:Financial StatementsAmountGeneral Fund2,956,383Food Service Fund1,337,135Little Warriors Fund56,037 Total federal revenues per financial statements4,349,555Less: Federal assistance funding not subject to single audit(55,273) Adjusted federal revenues subject to single audit4,294,282

Finding Details

Finding 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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 2022-002
Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / 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 $129,204. 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.