FAC Explorer

Audit 22858

FY End
2022-06-30
Total Expended
$18.32M
Findings
22
Programs
13
Organization: Bay City Public Schools (MI)
Year: 2022 Accepted: 2022-10-30
Auditor: Weinlander Fitzhugh

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20980 2022-001 - - N
20981 2022-001 - - N
20982 2022-001 - - N
20983 2022-001 - - N
20984 2022-001 - - N
20985 2022-001 - - N
20986 2022-001 - - N
20987 2022-001 - - N
20988 2022-001 - - N
20989 2022-001 - - N
20990 2022-001 - - N
597422 2022-001 - - N
597423 2022-001 - - N
597424 2022-001 - - N
597425 2022-001 - - N
597426 2022-001 - - N
597427 2022-001 - - N
597428 2022-001 - - N
597429 2022-001 - - N
597430 2022-001 - - N
597431 2022-001 - - N
597432 2022-001 - - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $9.79M Yes 0
84.010 Title I Grants to Local Educational Agencies $2.66M - 0
10.553 School Breakfast Program $846,344 Yes 1
84.367 Improving Teacher Quality State Grants $322,070 - 0
84.424 Student Support and Academic Enrichment Program $283,458 - 0
10.555 National School Lunch Program $253,264 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $167,170 - 0
84.377 School Improvement Grants $158,989 - 0
10.559 Summer Food Service Program for Children $79,427 Yes 1
10.582 Fresh Fruit and Vegetable Program $53,466 Yes 1
84.365 English Language Acquisition State Grants $14,058 - 0
10.649 Pandemic Ebt Administrative Costs $5,814 - 0
84.196 Education for Homeless Children and Youth $500 - 0

Contacts

Name Title Type
NVHRA4V88HN3 Jolene Compton Auditee
9896718111 David Quimby Auditor
No contacts on file

Notes to SEFA

Title: Other Disclosures Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Bay City 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 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 Bay City Public Schools, it is not intended to and does not present the financial position or changes in net position of Bay City Public Schools. 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 credit made in the normal course of business to amounts reported as expenditures.The School District has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. The School District does not have any subrecipients. 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 and the Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards.
Title: Reconciliation of Revenue Reported in the Financial Statements Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Bay City 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 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 Bay City Public Schools, it is not intended to and does not present the financial position or changes in net position of Bay City Public Schools. 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 credit made in the normal course of business to amounts reported as expenditures.The School District has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. The School District does not have any subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Total federal expenditures per Schedule of Expenditures of Federal Awards - $18,317,560. Add: Daycare - $389,740. Revenues per financial statements - federal sources - $18,707,300.
Title: (Unaudited) Donated Personal Protective Equipment Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Bay City 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 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 Bay City Public Schools, it is not intended to and does not present the financial position or changes in net position of Bay City Public Schools. 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 credit made in the normal course of business to amounts reported as expenditures.The School District has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. The School District does not have any subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended June 30, 2022, the School District did not receive any personal protective equipment.

Finding Details

Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.
Finding 2022-001
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.