Audit 311946

FY End
2022-06-30
Total Expended
$2.38M
Findings
18
Programs
9
Organization: Lawton Community Schools (MI)
Year: 2022 Accepted: 2022-11-28
Auditor: Seber Tans Plc

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
409836 2022-001 Significant Deficiency Yes P
409837 2022-001 Significant Deficiency Yes P
409838 2022-001 Significant Deficiency Yes P
409839 2022-001 Significant Deficiency Yes P
409840 2022-001 Significant Deficiency Yes P
409841 2022-001 Significant Deficiency Yes P
409842 2022-001 Significant Deficiency Yes P
409843 2022-001 Significant Deficiency Yes P
409844 2022-001 Significant Deficiency Yes P
986278 2022-001 Significant Deficiency Yes P
986279 2022-001 Significant Deficiency Yes P
986280 2022-001 Significant Deficiency Yes P
986281 2022-001 Significant Deficiency Yes P
986282 2022-001 Significant Deficiency Yes P
986283 2022-001 Significant Deficiency Yes P
986284 2022-001 Significant Deficiency Yes P
986285 2022-001 Significant Deficiency Yes P
986286 2022-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $751,983 Yes 0
10.555 National School Lunch Program $543,979 Yes 1
10.553 School Breakfast Program $342,252 Yes 1
84.010 Title I Grants to Local Educational Agencies $130,931 - 0
84.367 Improving Teacher Quality State Grants $24,691 - 0
10.559 Summer Food Service Program for Children $15,411 Yes 1
84.424 Student Support and Academic Enrichment Program $10,363 - 0
10.649 Pandemic Ebt Administrative Costs $614 Yes 1
93.778 Medical Assistance Program $523 - 0

Contacts

Name Title Type
HJBGMDYKC5Y5 Dianne Webster Auditee
2696247906 Brian Krol Auditor
No contacts on file

Notes to SEFA

Title: Michigan Department of Education Disclosures Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lawton Community Schools (the District) 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 the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District.Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles in OMB A-87 or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Amounts reported on the schedule of expenditures of federal awards agree the Districts grant auditor report (GAR) and Schedule for USDA donated food commodities except as noted below:ProgramTitle I Title IITitle IVESSER -FormulaESSER III - FormulaAssistance Listing Number84.01084.367A84.424A84.425D84.425UGAR amount Paid as of June 30, 2022 $ 139,232$ 26,715$ 10,600$ 580,359$ 712,000Received by District on July 1, 2022 (40,000) (4,200) (1,600) (84,898) (712,000)SEFA amount Paid as of June 30, 2022 $ 99,232$ 22,515$ 9,000$ 495,461$ -

Finding Details

Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton Community Schools currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess funds cannot be transferred to another fund.Questioned Costs: NoneCause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance.Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures.Recommendation: The District should implement a budget, as well as the required corrective action plan for the 2022-2023 school year that will adequately reduce the food service fund balance.District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.