FAC Explorer

Audit 25883

FY End
2022-06-30
Total Expended
$6.10M
Findings
36
Programs
13
Organization: West Branch-Rose City Schools (MI)
Year: 2022 Accepted: 2022-10-25
Auditor: Weinlander Fitzhugh

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30746 2022-001 - Yes N
30747 2022-002 - - P
30748 2022-001 - Yes N
30749 2022-002 - - P
30750 2022-001 - Yes N
30751 2022-002 - - P
30752 2022-001 - Yes N
30753 2022-002 - - P
30754 2022-001 - Yes N
30755 2022-002 - - P
30756 2022-001 - Yes N
30757 2022-002 - - P
30758 2022-001 - Yes N
30759 2022-002 - - P
30760 2022-001 - Yes N
30761 2022-002 - - P
30762 2022-001 - Yes N
30763 2022-002 - - P
607188 2022-001 - Yes N
607189 2022-002 - - P
607190 2022-001 - Yes N
607191 2022-002 - - P
607192 2022-001 - Yes N
607193 2022-002 - - P
607194 2022-001 - Yes N
607195 2022-002 - - P
607196 2022-001 - Yes N
607197 2022-002 - - P
607198 2022-001 - Yes N
607199 2022-002 - - P
607200 2022-001 - Yes N
607201 2022-002 - - P
607202 2022-001 - Yes N
607203 2022-002 - - P
607204 2022-001 - Yes N
607205 2022-002 - - P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $888,309 Yes 0
10.553 School Breakfast Program $556,547 Yes 2
84.027 Special Education_grants to States $416,132 - 0
10.559 Summer Food Service Program for Children $123,371 Yes 2
10.555 National School Lunch Program $95,461 Yes 2
84.424 Student Support and Academic Enrichment Program $30,751 - 0
84.367 Improving Teacher Quality State Grants $23,586 - 0
84.358 Rural Education $21,500 - 0
10.665 Schools and Roads - Grants to States $19,068 - 0
10.582 Fresh Fruit and Vegetable Program $8,056 Yes 2
10.558 Child and Adult Care Food Program $6,144 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0
84.010 Title I Grants to Local Educational Agencies $188 - 0

Contacts

Name Title Type
LVA8LJNQ4MP1 Ted Matuszak Auditee
9893432000 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 West Branch-Rose City Area 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 West Branch-Rose City Area Schools, it is not intended to and does not present the financial position or changes in net position of West Branch-Rose City Area 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 West Branch-Rose City Area 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 West Branch-Rose City Area Schools, it is not intended to and does not present the financial position or changes in net position of West Branch-Rose City Area 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 - $6,095,761. Add: E-Start Childcare Grant - $1,694. Revenues per financial statements - federal sources - $6,097,455.
Title: (Unaudited) Donated Personal Protective Equipment Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of West Branch-Rose City Area 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 West Branch-Rose City Area Schools, it is not intended to and does not present the financial position or changes in net position of West Branch-Rose City Area 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 donated personal protective equipment.

Finding Details

Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.
Finding 2022-001
2022-001 (Repeat Finding 2021-001) Program - 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 $1,539,648. Cause - Management did not monitor net cash resources and their spend down plan 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 closely monitors their spend down plan with the 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 2022-002
2022-002 Program - 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. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.