FAC Explorer

Audit 25517

FY End
2022-06-30
Total Expended
$902,712
Findings
8
Programs
13
Organization: Pickford Public Schools (MI)
Year: 2022 Accepted: 2022-12-11
Auditor: Baird Cotter & Bishop PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37853 2022-001 - Yes N
37854 2022-001 - Yes N
37855 2022-001 - Yes N
37856 2022-001 - Yes N
614295 2022-001 - Yes N
614296 2022-001 - Yes N
614297 2022-001 - Yes N
614298 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $241,484 - 0
10.553 School Breakfast Program $74,517 Yes 1
84.010 Title I Grants to Local Educational Agencies $61,156 - 0
84.358 Rural Education $40,032 Yes 0
84.027 Special Education_grants to States $32,400 - 0
10.559 Summer Food Service Program for Children $27,818 Yes 1
10.555 National School Lunch Program $16,336 Yes 1
84.367 Improving Teacher Quality State Grants $14,418 - 0
84.060 Indian Education_grants to Local Educational Agencies $13,922 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
21.019 Coronavirus Relief Fund $5,414 - 0
93.778 Medical Assistance Program $1,221 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
KN3LMLELPCQ6 Cheri Bush Auditee
9066476285 Trent Mulder Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Pickford Public Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Pickford 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Pickford Public Schools, it is not intended to and does not present the financial position, changes in net position, or cash flows of Pickford Public Schools. The District does not pass-through federal funds to sub recipients.
Title: ADJUSTMENTS Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Pickford Public Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District recognized expenditures in the prior year, but due to grant agreements not being in place, were unable to recognize the revenues during the prior year. Per the Michigan Department of Education guidance, the expenditures were to be recognized in the prior period, but the revenues recognized in the current year. The amount of this adjustment for the year ended June 30, 2022, was $47,415. The expenditures would have been subjected to audit during the fiscal year ended June 30, 2022, had those expenditures been in programs determined to be major programs.
Title: RECONCILIATION OF REVENUES WITH EXPENDITURES FOR FEDERAL FINANCIAL ASSISTAN Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Pickford Public Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SEE TABLE IN NOTES TO SEFA.
Title: RECONCILIATION OF GRANT AUDITOR REPORT WITH SCHEDULE OF EXPENDITURES OF FED Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Pickford Public Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SEE TABLE IN NOTES TO SEFA.
Title: GRANT AUDITOR REPORT Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Pickford Public Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Management has utilized the NexSys Grant Auditor Report in preparing the schedule of expenditures of federal awards.

Finding Details

Finding 2022-001
2022-001 Material Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $322,143 at fiscal year-end exceeded the allowable three months of expenditures threshold by $220,331. Recommendations: We recommend the District closely monitor its financial activity for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Business Manager has created and submitted a spend down plan that has been approved by the Michigan Department of Education. The District expects adherence to this plan will reduce the fund balance within the Food Service Fund to an appropriate level for the year ending June 30, 2023. The District has approved the purchase of equipment that will cost $237,771 and had anticipated that it would be in service by June 30, 2022. However, there have been delays in receiving the equipment and therefore the District was unable to expend resources on the equipment prior to June 30, 2022.
Finding 2022-001
2022-001 Material Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $322,143 at fiscal year-end exceeded the allowable three months of expenditures threshold by $220,331. Recommendations: We recommend the District closely monitor its financial activity for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Business Manager has created and submitted a spend down plan that has been approved by the Michigan Department of Education. The District expects adherence to this plan will reduce the fund balance within the Food Service Fund to an appropriate level for the year ending June 30, 2023. The District has approved the purchase of equipment that will cost $237,771 and had anticipated that it would be in service by June 30, 2022. However, there have been delays in receiving the equipment and therefore the District was unable to expend resources on the equipment prior to June 30, 2022.
Finding 2022-001
2022-001 Material Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $322,143 at fiscal year-end exceeded the allowable three months of expenditures threshold by $220,331. Recommendations: We recommend the District closely monitor its financial activity for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Business Manager has created and submitted a spend down plan that has been approved by the Michigan Department of Education. The District expects adherence to this plan will reduce the fund balance within the Food Service Fund to an appropriate level for the year ending June 30, 2023. The District has approved the purchase of equipment that will cost $237,771 and had anticipated that it would be in service by June 30, 2022. However, there have been delays in receiving the equipment and therefore the District was unable to expend resources on the equipment prior to June 30, 2022.
Finding 2022-001
2022-001 Material Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $322,143 at fiscal year-end exceeded the allowable three months of expenditures threshold by $220,331. Recommendations: We recommend the District closely monitor its financial activity for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Business Manager has created and submitted a spend down plan that has been approved by the Michigan Department of Education. The District expects adherence to this plan will reduce the fund balance within the Food Service Fund to an appropriate level for the year ending June 30, 2023. The District has approved the purchase of equipment that will cost $237,771 and had anticipated that it would be in service by June 30, 2022. However, there have been delays in receiving the equipment and therefore the District was unable to expend resources on the equipment prior to June 30, 2022.
Finding 2022-001
2022-001 Material Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $322,143 at fiscal year-end exceeded the allowable three months of expenditures threshold by $220,331. Recommendations: We recommend the District closely monitor its financial activity for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Business Manager has created and submitted a spend down plan that has been approved by the Michigan Department of Education. The District expects adherence to this plan will reduce the fund balance within the Food Service Fund to an appropriate level for the year ending June 30, 2023. The District has approved the purchase of equipment that will cost $237,771 and had anticipated that it would be in service by June 30, 2022. However, there have been delays in receiving the equipment and therefore the District was unable to expend resources on the equipment prior to June 30, 2022.
Finding 2022-001
2022-001 Material Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $322,143 at fiscal year-end exceeded the allowable three months of expenditures threshold by $220,331. Recommendations: We recommend the District closely monitor its financial activity for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Business Manager has created and submitted a spend down plan that has been approved by the Michigan Department of Education. The District expects adherence to this plan will reduce the fund balance within the Food Service Fund to an appropriate level for the year ending June 30, 2023. The District has approved the purchase of equipment that will cost $237,771 and had anticipated that it would be in service by June 30, 2022. However, there have been delays in receiving the equipment and therefore the District was unable to expend resources on the equipment prior to June 30, 2022.
Finding 2022-001
2022-001 Material Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $322,143 at fiscal year-end exceeded the allowable three months of expenditures threshold by $220,331. Recommendations: We recommend the District closely monitor its financial activity for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Business Manager has created and submitted a spend down plan that has been approved by the Michigan Department of Education. The District expects adherence to this plan will reduce the fund balance within the Food Service Fund to an appropriate level for the year ending June 30, 2023. The District has approved the purchase of equipment that will cost $237,771 and had anticipated that it would be in service by June 30, 2022. However, there have been delays in receiving the equipment and therefore the District was unable to expend resources on the equipment prior to June 30, 2022.
Finding 2022-001
2022-001 Material Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $322,143 at fiscal year-end exceeded the allowable three months of expenditures threshold by $220,331. Recommendations: We recommend the District closely monitor its financial activity for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Business Manager has created and submitted a spend down plan that has been approved by the Michigan Department of Education. The District expects adherence to this plan will reduce the fund balance within the Food Service Fund to an appropriate level for the year ending June 30, 2023. The District has approved the purchase of equipment that will cost $237,771 and had anticipated that it would be in service by June 30, 2022. However, there have been delays in receiving the equipment and therefore the District was unable to expend resources on the equipment prior to June 30, 2022.