FAC Explorer

Audit 28296

FY End
2022-06-30
Total Expended
$4.71M
Findings
16
Programs
14
Organization: Gladwin Community Schools (MI)
Year: 2022 Accepted: 2022-10-24
Auditor: Weinlander Fitzhugh

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32588 2022-002 Significant Deficiency Yes N
32589 2022-002 Significant Deficiency Yes N
32590 2022-002 Significant Deficiency Yes N
32591 2022-002 Significant Deficiency Yes N
32592 2022-002 Significant Deficiency Yes N
32593 2022-002 Significant Deficiency Yes N
32594 2022-002 Significant Deficiency Yes N
32595 2022-002 Significant Deficiency Yes N
609030 2022-002 Significant Deficiency Yes N
609031 2022-002 Significant Deficiency Yes N
609032 2022-002 Significant Deficiency Yes N
609033 2022-002 Significant Deficiency Yes N
609034 2022-002 Significant Deficiency Yes N
609035 2022-002 Significant Deficiency Yes N
609036 2022-002 Significant Deficiency Yes N
609037 2022-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $648,525 - 0
84.027 Special Education_grants to States $546,131 - 0
32.009 Emergency Connectivity Fund Program $442,150 - 0
10.553 School Breakfast Program $291,718 Yes 1
84.425 Education Stabilization Fund $199,100 Yes 0
84.367 Improving Teacher Quality State Grants $130,156 - 0
84.424 Student Support and Academic Enrichment Program $46,919 - 0
84.358 Rural Education $35,506 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $32,016 - 0
10.555 National School Lunch Program $10,024 Yes 1
10.649 Pandemic Ebt Administrative Costs $3,063 - 0
93.778 Medical Assistance Program $2,698 - 0
10.559 Summer Food Service Program for Children $2,018 Yes 1
10.558 Child and Adult Care Food Program $1,286 - 0

Contacts

Name Title Type
WZTVJL54G1E5 Mandi Zaborowski Auditee
9894269255 Shelly Browning 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 Gladwin Community 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 Gladwin Community Schools, it is not intended to and does not present the financial position or changes in net position of Gladwin Community 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 School District has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. Management has utilized the NexSys Cash Management System Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards.
Title: (UNAUDITED) DONATED PERSONAL PROTECTIVE EQUIPMENT Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Gladwin Community 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 Gladwin Community Schools, it is not intended to and does not present the financial position or changes in net position of Gladwin Community 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 School District has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. For the year ended June 30, 2022, the School District did not receive any donated personal protective.

Finding Details

Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.
Finding 2022-002
2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.