Audit 25507

FY End
2022-06-30
Total Expended
$5.10M
Findings
40
Programs
16
Organization: East China School District (MI)
Year: 2022 Accepted: 2022-10-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
25203 2022-003 Significant Deficiency - B
25204 2022-004 - - P
25205 2022-003 Significant Deficiency - B
25206 2022-004 - - P
25207 2022-003 Significant Deficiency - B
25208 2022-004 - - P
25209 2022-003 Significant Deficiency - B
25210 2022-004 - - P
25211 2022-003 Significant Deficiency - B
25212 2022-004 - - P
25213 2022-003 Significant Deficiency - B
25214 2022-004 - - P
25215 2022-003 Significant Deficiency - B
25216 2022-004 - - P
25217 2022-003 Significant Deficiency - B
25218 2022-004 - - P
25219 2022-003 Significant Deficiency - B
25220 2022-004 - - P
25221 2022-003 Significant Deficiency - B
25222 2022-004 - - P
601645 2022-003 Significant Deficiency - B
601646 2022-004 - - P
601647 2022-003 Significant Deficiency - B
601648 2022-004 - - P
601649 2022-003 Significant Deficiency - B
601650 2022-004 - - P
601651 2022-003 Significant Deficiency - B
601652 2022-004 - - P
601653 2022-003 Significant Deficiency - B
601654 2022-004 - - P
601655 2022-003 Significant Deficiency - B
601656 2022-004 - - P
601657 2022-003 Significant Deficiency - B
601658 2022-004 - - P
601659 2022-003 Significant Deficiency - B
601660 2022-004 - - P
601661 2022-003 Significant Deficiency - B
601662 2022-004 - - P
601663 2022-003 Significant Deficiency - B
601664 2022-004 - - P

Contacts

Name Title Type
MLUKPGAD7296 Angela Gleason Auditee
8106761005 Curtis McBride Auditor
No contacts on file

Notes to SEFA

Title: Major Program Identification Accounting Policies: Revenues and expenditures are recognized on the modified accrual basis of accounting. Under this method, expenditures are recognized when incurred. Revenues are recognized if the expenditures have been incurred and cash was received within 60 days of year-end. Any excess or deficiency of revenue received is recorded as deferred revenue and accrued revenue, respectively, at year end. See Note 1 to the District's audited financial statements for further discussion of the accounting policies used. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District uses the indirect cost rates determined and approved by the Michigan Department of Education. * designates major federal financial assistance program
Title: Final Cost Reports Accounting Policies: Revenues and expenditures are recognized on the modified accrual basis of accounting. Under this method, expenditures are recognized when incurred. Revenues are recognized if the expenditures have been incurred and cash was received within 60 days of year-end. Any excess or deficiency of revenue received is recorded as deferred revenue and accrued revenue, respectively, at year end. See Note 1 to the District's audited financial statements for further discussion of the accounting policies used. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District uses the indirect cost rates determined and approved by the Michigan Department of Education. Management has reported the expenditures in the Schedule of Expenditures of Federal Awards equal to those reported in the final cost reports.
Title: Preparation of SEFA Accounting Policies: Revenues and expenditures are recognized on the modified accrual basis of accounting. Under this method, expenditures are recognized when incurred. Revenues are recognized if the expenditures have been incurred and cash was received within 60 days of year-end. Any excess or deficiency of revenue received is recorded as deferred revenue and accrued revenue, respectively, at year end. See Note 1 to the District's audited financial statements for further discussion of the accounting policies used. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District uses the indirect cost rates determined and approved by the Michigan Department of Education. Management has utilized the Michigan Department of Education's (MDE) Cash Management System (CMS) and Grant Auditor Report (GAR) in preparing the Schedule of Expenditures of Federal Awards.
Title: Inventory Accounting Policies: Revenues and expenditures are recognized on the modified accrual basis of accounting. Under this method, expenditures are recognized when incurred. Revenues are recognized if the expenditures have been incurred and cash was received within 60 days of year-end. Any excess or deficiency of revenue received is recorded as deferred revenue and accrued revenue, respectively, at year end. See Note 1 to the District's audited financial statements for further discussion of the accounting policies used. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District uses the indirect cost rates determined and approved by the Michigan Department of Education. Management has elected not to record ending inventory

Finding Details

Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559 Pass-Through Entity: Michigan Department of Education. Finding Type: Significant Deficiency Condition: Instances were noted where payroll allocations were not properly calculated by third party servicer. Perspective/Context: One out of a total of 30 employees had time allocated incorrectly. Questioned Cost: None. Criteria: Salaries and wages should be posted consistent with timecards and other records to assure allowable expenditures are charged to the correct federal program. Cause: The District does not have appropriate oversight over payroll servicer and relies on the servicer to properly calculate and record payroll without verification or review. Effect: Payroll related to other programs or functions could be allocated incorrectly to federal programs. Recommendation: The District should review the payroll process and procedures and consider making adjustments to the process to provide additional oversight over payroll servicer. Management's Response: Management has initiated a review of the payroll process and procedures and will make necessary adjustments to include verification and review of payroll servicer calculations.
Program Name: Child Nutrition Cluster - CFDA# 10.553/10.555/10.559. Pass-through entity: Michigan Department of Education. Finding type: noncompliance. Criteria: Section 7 Part 210.14b of the Code of Federal Regulations requires the school district's school food authority to limit its net cash resources by an amount that does not exceed three months average expenditures or other amount approved by the State Authority. Condition: The District's Cafeteria fund balance exceeded three months average expenditures at June 30, 2022. Questioned Costs: None. Perspective/Context: At June 30, 2022, the District's Cafeteria Fund had approximately 9 months of average monthly expenditures in fund balance. Additionally, the District has an approved Excess Fund Balance Elimination Plan in place which has been approved by the Michigan Department of Education since June 30, 2019. The original plan was delayed due to pandemic shutdowns and the District has been working to reinvest the excess into the food service authority. However, supply chain issues have delayed the implementation. See management's response for additional information. Cause/Effect: Management did not monitor the net cash resources before the pandemic to ensure the Fund did not exceed three months average expenditures. Recommendation: The District should review the Cafeteria fund balance periodically to ensure fund balance will not have an excess of three months average expenditures at the end of the fiscal year. Management's response: Management continues to follow the approved Excess Fund Balance Elimination Plan. It is expected the equipment investment will be made in the upcoming fiscal year. Quarterly reviews of the Cafeteria fund balance are planned.