Audit 33193

FY End
2022-06-30
Total Expended
$3.56M
Findings
14
Programs
15
Organization: Hart Public Schools (MI)
Year: 2022 Accepted: 2022-11-01

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
34292 2022-001 Significant Deficiency - N
34293 2022-001 Significant Deficiency - N
34294 2022-001 Significant Deficiency - N
34295 2022-002 - Yes N
34296 2022-002 - Yes N
34297 2022-002 - Yes N
34298 2022-002 - Yes N
610734 2022-001 Significant Deficiency - N
610735 2022-001 Significant Deficiency - N
610736 2022-001 Significant Deficiency - N
610737 2022-002 - Yes N
610738 2022-002 - Yes N
610739 2022-002 - Yes N
610740 2022-002 - Yes N

Programs

ALN Program Spent Major Findings
93.600 Head Start $400,028 - 0
84.011 Migrant Education_state Grant Program $362,425 - 0
84.010 Title I Grants to Local Educational Agencies $341,859 - 0
32.009 Emergency Connectivity Fund Program $214,650 - 0
10.553 School Breakfast Program $211,812 - 1
10.555 National School Lunch Program $54,902 - 1
84.424 Student Support and Academic Enrichment Program $43,472 - 0
84.367 Improving Teacher Quality State Grants $36,272 - 0
10.558 Child and Adult Care Food Program $27,207 - 0
84.358 Rural Education $27,108 - 0
84.425 Education Stabilization Fund $15,923 Yes 1
10.559 Summer Food Service Program for Children $7,721 - 1
84.365 English Language Acquisition State Grants $5,852 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0
10.665 Schools and Roads - Grants to States $2,846 - 0

Contacts

Name Title Type
LCFFNEMTLZN7 Marth Baker Auditee
2318981560 Brian McFarren Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the schedule) includes the federal award activity of the School 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 School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Management has utilized the Michigan Department of Education NexSys Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

U.S. Department of Education Finding 2022-001: Education Stabilization Funds Wage Rate Requirements Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 84.425C, 84.425D and 84.425U Award Numbers: COVID-19 201200 20-21, COVID-19 211202 2122, COVID-19 213762 2122, COVID-19 213712 20-21, COVID-19 213722 2122, COVID-19 213742 2122 and COVID-19 213713 2122 Award Year End: September 30, 2023 Specific Requirement: Special Tests?Wage Rate Requirements Criteria: Section 20.001 and 200.311 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to include prevailing rate clauses in construction contracts and receive certifications that prevailing wages in their location were paid during each week and have obtained board approval of the contracts. Questioned Costs: None. Condition: During our testing of the construction contract expenditures, we noted that the School District?s contract did not contain the required clause for prevailing wages to be paid during each week of construction. Context: The School District construction contract did not contain clauses requiring prevailing wages to be paid and the contractor to provide certifications that prevailing wages were paid for each week of the contract. The School District did obtain the proper Board approval of the contract in advance. Effect: The School District could be held responsible to ensure the construction contractor employees were paid prevailing wage rates for each week of the contract. Cause: The School District was unaware that this clause was required in relation to construction contracts funded with federal funds. Repeat Finding: This is not a repeat finding. Recommendation: The School District should review its construction contracts funded with federal funds to ensure that the contract requires prevailing wages to be paid and require proper certifications from the contractor that prevailing wages were paid for every week the work was performed. Views of Responsible Officials: The School District agrees with this finding and has received from the contractor the proper certifications that prevailing wages were paid to employees for each week of work performed.
U.S. Department of Education Finding 2022-001: Education Stabilization Funds Wage Rate Requirements Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 84.425C, 84.425D and 84.425U Award Numbers: COVID-19 201200 20-21, COVID-19 211202 2122, COVID-19 213762 2122, COVID-19 213712 20-21, COVID-19 213722 2122, COVID-19 213742 2122 and COVID-19 213713 2122 Award Year End: September 30, 2023 Specific Requirement: Special Tests?Wage Rate Requirements Criteria: Section 20.001 and 200.311 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to include prevailing rate clauses in construction contracts and receive certifications that prevailing wages in their location were paid during each week and have obtained board approval of the contracts. Questioned Costs: None. Condition: During our testing of the construction contract expenditures, we noted that the School District?s contract did not contain the required clause for prevailing wages to be paid during each week of construction. Context: The School District construction contract did not contain clauses requiring prevailing wages to be paid and the contractor to provide certifications that prevailing wages were paid for each week of the contract. The School District did obtain the proper Board approval of the contract in advance. Effect: The School District could be held responsible to ensure the construction contractor employees were paid prevailing wage rates for each week of the contract. Cause: The School District was unaware that this clause was required in relation to construction contracts funded with federal funds. Repeat Finding: This is not a repeat finding. Recommendation: The School District should review its construction contracts funded with federal funds to ensure that the contract requires prevailing wages to be paid and require proper certifications from the contractor that prevailing wages were paid for every week the work was performed. Views of Responsible Officials: The School District agrees with this finding and has received from the contractor the proper certifications that prevailing wages were paid to employees for each week of work performed.
U.S. Department of Education Finding 2022-001: Education Stabilization Funds Wage Rate Requirements Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 84.425C, 84.425D and 84.425U Award Numbers: COVID-19 201200 20-21, COVID-19 211202 2122, COVID-19 213762 2122, COVID-19 213712 20-21, COVID-19 213722 2122, COVID-19 213742 2122 and COVID-19 213713 2122 Award Year End: September 30, 2023 Specific Requirement: Special Tests?Wage Rate Requirements Criteria: Section 20.001 and 200.311 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to include prevailing rate clauses in construction contracts and receive certifications that prevailing wages in their location were paid during each week and have obtained board approval of the contracts. Questioned Costs: None. Condition: During our testing of the construction contract expenditures, we noted that the School District?s contract did not contain the required clause for prevailing wages to be paid during each week of construction. Context: The School District construction contract did not contain clauses requiring prevailing wages to be paid and the contractor to provide certifications that prevailing wages were paid for each week of the contract. The School District did obtain the proper Board approval of the contract in advance. Effect: The School District could be held responsible to ensure the construction contractor employees were paid prevailing wage rates for each week of the contract. Cause: The School District was unaware that this clause was required in relation to construction contracts funded with federal funds. Repeat Finding: This is not a repeat finding. Recommendation: The School District should review its construction contracts funded with federal funds to ensure that the contract requires prevailing wages to be paid and require proper certifications from the contractor that prevailing wages were paid for every week the work was performed. Views of Responsible Officials: The School District agrees with this finding and has received from the contractor the proper certifications that prevailing wages were paid to employees for each week of work performed.
U.S. Department of Agriculture Finding 2022-002: Child Nutrition Cluster Resource Management Procedures Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 10.553, 10.555 and 10.559 Award Numbers: COVID-19 211971, COVID-19 221970, COVID-19 221971, COVID-19 211961, COVID-19 220910, COVID-19 221960, COVID-19 221961, COVID-19 210904 and Entitlement Commodities Award Year Ends: June 30, 2022 Specific Requirement: Resource Management and Special Tests Criteria: Section 210.14(b) and 210.19(a)(1) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to limit its net cash resources in the Food Service Fund to the maximum allowable amount of three months of average expenditures. Questioned Costs: None. Condition: During our testing of the Child Nutrition Cluster net cash resources, we noted that the School District Food Service Fund net cash resources were in excess of maximum allowable amount. Context: As of June 30, 2022, the School District Food Service Fund net cash resources were in excess of the maximum allowable amount. Effect: The School District could receive reduced funding in future years if the condition continues. Cause: The School District had planned to reduce its Food Service Fund net cash resources below the maximum threshold, but due to timing, was unable to get proper approvals, order and receive purchased goods and/or services by the end of the fiscal year. Due to the supply chain issues that the entire United States was experiencing, items were not delivered before the fiscal year end. Repeat Finding: A similar finding was reported during the single audit for the year ended June 30, 2021. Recommendation: The School District should develop and complete a spend-down plan to ensure it reduces its Food Service Fund net cash resources below the maximum allowable amount. Views of Responsible Officials: The School District agrees with this finding.
U.S. Department of Agriculture Finding 2022-002: Child Nutrition Cluster Resource Management Procedures Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 10.553, 10.555 and 10.559 Award Numbers: COVID-19 211971, COVID-19 221970, COVID-19 221971, COVID-19 211961, COVID-19 220910, COVID-19 221960, COVID-19 221961, COVID-19 210904 and Entitlement Commodities Award Year Ends: June 30, 2022 Specific Requirement: Resource Management and Special Tests Criteria: Section 210.14(b) and 210.19(a)(1) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to limit its net cash resources in the Food Service Fund to the maximum allowable amount of three months of average expenditures. Questioned Costs: None. Condition: During our testing of the Child Nutrition Cluster net cash resources, we noted that the School District Food Service Fund net cash resources were in excess of maximum allowable amount. Context: As of June 30, 2022, the School District Food Service Fund net cash resources were in excess of the maximum allowable amount. Effect: The School District could receive reduced funding in future years if the condition continues. Cause: The School District had planned to reduce its Food Service Fund net cash resources below the maximum threshold, but due to timing, was unable to get proper approvals, order and receive purchased goods and/or services by the end of the fiscal year. Due to the supply chain issues that the entire United States was experiencing, items were not delivered before the fiscal year end. Repeat Finding: A similar finding was reported during the single audit for the year ended June 30, 2021. Recommendation: The School District should develop and complete a spend-down plan to ensure it reduces its Food Service Fund net cash resources below the maximum allowable amount. Views of Responsible Officials: The School District agrees with this finding.
U.S. Department of Agriculture Finding 2022-002: Child Nutrition Cluster Resource Management Procedures Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 10.553, 10.555 and 10.559 Award Numbers: COVID-19 211971, COVID-19 221970, COVID-19 221971, COVID-19 211961, COVID-19 220910, COVID-19 221960, COVID-19 221961, COVID-19 210904 and Entitlement Commodities Award Year Ends: June 30, 2022 Specific Requirement: Resource Management and Special Tests Criteria: Section 210.14(b) and 210.19(a)(1) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to limit its net cash resources in the Food Service Fund to the maximum allowable amount of three months of average expenditures. Questioned Costs: None. Condition: During our testing of the Child Nutrition Cluster net cash resources, we noted that the School District Food Service Fund net cash resources were in excess of maximum allowable amount. Context: As of June 30, 2022, the School District Food Service Fund net cash resources were in excess of the maximum allowable amount. Effect: The School District could receive reduced funding in future years if the condition continues. Cause: The School District had planned to reduce its Food Service Fund net cash resources below the maximum threshold, but due to timing, was unable to get proper approvals, order and receive purchased goods and/or services by the end of the fiscal year. Due to the supply chain issues that the entire United States was experiencing, items were not delivered before the fiscal year end. Repeat Finding: A similar finding was reported during the single audit for the year ended June 30, 2021. Recommendation: The School District should develop and complete a spend-down plan to ensure it reduces its Food Service Fund net cash resources below the maximum allowable amount. Views of Responsible Officials: The School District agrees with this finding.
U.S. Department of Agriculture Finding 2022-002: Child Nutrition Cluster Resource Management Procedures Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 10.553, 10.555 and 10.559 Award Numbers: COVID-19 211971, COVID-19 221970, COVID-19 221971, COVID-19 211961, COVID-19 220910, COVID-19 221960, COVID-19 221961, COVID-19 210904 and Entitlement Commodities Award Year Ends: June 30, 2022 Specific Requirement: Resource Management and Special Tests Criteria: Section 210.14(b) and 210.19(a)(1) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to limit its net cash resources in the Food Service Fund to the maximum allowable amount of three months of average expenditures. Questioned Costs: None. Condition: During our testing of the Child Nutrition Cluster net cash resources, we noted that the School District Food Service Fund net cash resources were in excess of maximum allowable amount. Context: As of June 30, 2022, the School District Food Service Fund net cash resources were in excess of the maximum allowable amount. Effect: The School District could receive reduced funding in future years if the condition continues. Cause: The School District had planned to reduce its Food Service Fund net cash resources below the maximum threshold, but due to timing, was unable to get proper approvals, order and receive purchased goods and/or services by the end of the fiscal year. Due to the supply chain issues that the entire United States was experiencing, items were not delivered before the fiscal year end. Repeat Finding: A similar finding was reported during the single audit for the year ended June 30, 2021. Recommendation: The School District should develop and complete a spend-down plan to ensure it reduces its Food Service Fund net cash resources below the maximum allowable amount. Views of Responsible Officials: The School District agrees with this finding.
U.S. Department of Education Finding 2022-001: Education Stabilization Funds Wage Rate Requirements Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 84.425C, 84.425D and 84.425U Award Numbers: COVID-19 201200 20-21, COVID-19 211202 2122, COVID-19 213762 2122, COVID-19 213712 20-21, COVID-19 213722 2122, COVID-19 213742 2122 and COVID-19 213713 2122 Award Year End: September 30, 2023 Specific Requirement: Special Tests?Wage Rate Requirements Criteria: Section 20.001 and 200.311 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to include prevailing rate clauses in construction contracts and receive certifications that prevailing wages in their location were paid during each week and have obtained board approval of the contracts. Questioned Costs: None. Condition: During our testing of the construction contract expenditures, we noted that the School District?s contract did not contain the required clause for prevailing wages to be paid during each week of construction. Context: The School District construction contract did not contain clauses requiring prevailing wages to be paid and the contractor to provide certifications that prevailing wages were paid for each week of the contract. The School District did obtain the proper Board approval of the contract in advance. Effect: The School District could be held responsible to ensure the construction contractor employees were paid prevailing wage rates for each week of the contract. Cause: The School District was unaware that this clause was required in relation to construction contracts funded with federal funds. Repeat Finding: This is not a repeat finding. Recommendation: The School District should review its construction contracts funded with federal funds to ensure that the contract requires prevailing wages to be paid and require proper certifications from the contractor that prevailing wages were paid for every week the work was performed. Views of Responsible Officials: The School District agrees with this finding and has received from the contractor the proper certifications that prevailing wages were paid to employees for each week of work performed.
U.S. Department of Education Finding 2022-001: Education Stabilization Funds Wage Rate Requirements Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 84.425C, 84.425D and 84.425U Award Numbers: COVID-19 201200 20-21, COVID-19 211202 2122, COVID-19 213762 2122, COVID-19 213712 20-21, COVID-19 213722 2122, COVID-19 213742 2122 and COVID-19 213713 2122 Award Year End: September 30, 2023 Specific Requirement: Special Tests?Wage Rate Requirements Criteria: Section 20.001 and 200.311 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to include prevailing rate clauses in construction contracts and receive certifications that prevailing wages in their location were paid during each week and have obtained board approval of the contracts. Questioned Costs: None. Condition: During our testing of the construction contract expenditures, we noted that the School District?s contract did not contain the required clause for prevailing wages to be paid during each week of construction. Context: The School District construction contract did not contain clauses requiring prevailing wages to be paid and the contractor to provide certifications that prevailing wages were paid for each week of the contract. The School District did obtain the proper Board approval of the contract in advance. Effect: The School District could be held responsible to ensure the construction contractor employees were paid prevailing wage rates for each week of the contract. Cause: The School District was unaware that this clause was required in relation to construction contracts funded with federal funds. Repeat Finding: This is not a repeat finding. Recommendation: The School District should review its construction contracts funded with federal funds to ensure that the contract requires prevailing wages to be paid and require proper certifications from the contractor that prevailing wages were paid for every week the work was performed. Views of Responsible Officials: The School District agrees with this finding and has received from the contractor the proper certifications that prevailing wages were paid to employees for each week of work performed.
U.S. Department of Education Finding 2022-001: Education Stabilization Funds Wage Rate Requirements Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 84.425C, 84.425D and 84.425U Award Numbers: COVID-19 201200 20-21, COVID-19 211202 2122, COVID-19 213762 2122, COVID-19 213712 20-21, COVID-19 213722 2122, COVID-19 213742 2122 and COVID-19 213713 2122 Award Year End: September 30, 2023 Specific Requirement: Special Tests?Wage Rate Requirements Criteria: Section 20.001 and 200.311 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to include prevailing rate clauses in construction contracts and receive certifications that prevailing wages in their location were paid during each week and have obtained board approval of the contracts. Questioned Costs: None. Condition: During our testing of the construction contract expenditures, we noted that the School District?s contract did not contain the required clause for prevailing wages to be paid during each week of construction. Context: The School District construction contract did not contain clauses requiring prevailing wages to be paid and the contractor to provide certifications that prevailing wages were paid for each week of the contract. The School District did obtain the proper Board approval of the contract in advance. Effect: The School District could be held responsible to ensure the construction contractor employees were paid prevailing wage rates for each week of the contract. Cause: The School District was unaware that this clause was required in relation to construction contracts funded with federal funds. Repeat Finding: This is not a repeat finding. Recommendation: The School District should review its construction contracts funded with federal funds to ensure that the contract requires prevailing wages to be paid and require proper certifications from the contractor that prevailing wages were paid for every week the work was performed. Views of Responsible Officials: The School District agrees with this finding and has received from the contractor the proper certifications that prevailing wages were paid to employees for each week of work performed.
U.S. Department of Agriculture Finding 2022-002: Child Nutrition Cluster Resource Management Procedures Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 10.553, 10.555 and 10.559 Award Numbers: COVID-19 211971, COVID-19 221970, COVID-19 221971, COVID-19 211961, COVID-19 220910, COVID-19 221960, COVID-19 221961, COVID-19 210904 and Entitlement Commodities Award Year Ends: June 30, 2022 Specific Requirement: Resource Management and Special Tests Criteria: Section 210.14(b) and 210.19(a)(1) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to limit its net cash resources in the Food Service Fund to the maximum allowable amount of three months of average expenditures. Questioned Costs: None. Condition: During our testing of the Child Nutrition Cluster net cash resources, we noted that the School District Food Service Fund net cash resources were in excess of maximum allowable amount. Context: As of June 30, 2022, the School District Food Service Fund net cash resources were in excess of the maximum allowable amount. Effect: The School District could receive reduced funding in future years if the condition continues. Cause: The School District had planned to reduce its Food Service Fund net cash resources below the maximum threshold, but due to timing, was unable to get proper approvals, order and receive purchased goods and/or services by the end of the fiscal year. Due to the supply chain issues that the entire United States was experiencing, items were not delivered before the fiscal year end. Repeat Finding: A similar finding was reported during the single audit for the year ended June 30, 2021. Recommendation: The School District should develop and complete a spend-down plan to ensure it reduces its Food Service Fund net cash resources below the maximum allowable amount. Views of Responsible Officials: The School District agrees with this finding.
U.S. Department of Agriculture Finding 2022-002: Child Nutrition Cluster Resource Management Procedures Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 10.553, 10.555 and 10.559 Award Numbers: COVID-19 211971, COVID-19 221970, COVID-19 221971, COVID-19 211961, COVID-19 220910, COVID-19 221960, COVID-19 221961, COVID-19 210904 and Entitlement Commodities Award Year Ends: June 30, 2022 Specific Requirement: Resource Management and Special Tests Criteria: Section 210.14(b) and 210.19(a)(1) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to limit its net cash resources in the Food Service Fund to the maximum allowable amount of three months of average expenditures. Questioned Costs: None. Condition: During our testing of the Child Nutrition Cluster net cash resources, we noted that the School District Food Service Fund net cash resources were in excess of maximum allowable amount. Context: As of June 30, 2022, the School District Food Service Fund net cash resources were in excess of the maximum allowable amount. Effect: The School District could receive reduced funding in future years if the condition continues. Cause: The School District had planned to reduce its Food Service Fund net cash resources below the maximum threshold, but due to timing, was unable to get proper approvals, order and receive purchased goods and/or services by the end of the fiscal year. Due to the supply chain issues that the entire United States was experiencing, items were not delivered before the fiscal year end. Repeat Finding: A similar finding was reported during the single audit for the year ended June 30, 2021. Recommendation: The School District should develop and complete a spend-down plan to ensure it reduces its Food Service Fund net cash resources below the maximum allowable amount. Views of Responsible Officials: The School District agrees with this finding.
U.S. Department of Agriculture Finding 2022-002: Child Nutrition Cluster Resource Management Procedures Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 10.553, 10.555 and 10.559 Award Numbers: COVID-19 211971, COVID-19 221970, COVID-19 221971, COVID-19 211961, COVID-19 220910, COVID-19 221960, COVID-19 221961, COVID-19 210904 and Entitlement Commodities Award Year Ends: June 30, 2022 Specific Requirement: Resource Management and Special Tests Criteria: Section 210.14(b) and 210.19(a)(1) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to limit its net cash resources in the Food Service Fund to the maximum allowable amount of three months of average expenditures. Questioned Costs: None. Condition: During our testing of the Child Nutrition Cluster net cash resources, we noted that the School District Food Service Fund net cash resources were in excess of maximum allowable amount. Context: As of June 30, 2022, the School District Food Service Fund net cash resources were in excess of the maximum allowable amount. Effect: The School District could receive reduced funding in future years if the condition continues. Cause: The School District had planned to reduce its Food Service Fund net cash resources below the maximum threshold, but due to timing, was unable to get proper approvals, order and receive purchased goods and/or services by the end of the fiscal year. Due to the supply chain issues that the entire United States was experiencing, items were not delivered before the fiscal year end. Repeat Finding: A similar finding was reported during the single audit for the year ended June 30, 2021. Recommendation: The School District should develop and complete a spend-down plan to ensure it reduces its Food Service Fund net cash resources below the maximum allowable amount. Views of Responsible Officials: The School District agrees with this finding.
U.S. Department of Agriculture Finding 2022-002: Child Nutrition Cluster Resource Management Procedures Pass-through entity: Michigan Department of Education Assistance Listing Number(s): 10.553, 10.555 and 10.559 Award Numbers: COVID-19 211971, COVID-19 221970, COVID-19 221971, COVID-19 211961, COVID-19 220910, COVID-19 221960, COVID-19 221961, COVID-19 210904 and Entitlement Commodities Award Year Ends: June 30, 2022 Specific Requirement: Resource Management and Special Tests Criteria: Section 210.14(b) and 210.19(a)(1) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to limit its net cash resources in the Food Service Fund to the maximum allowable amount of three months of average expenditures. Questioned Costs: None. Condition: During our testing of the Child Nutrition Cluster net cash resources, we noted that the School District Food Service Fund net cash resources were in excess of maximum allowable amount. Context: As of June 30, 2022, the School District Food Service Fund net cash resources were in excess of the maximum allowable amount. Effect: The School District could receive reduced funding in future years if the condition continues. Cause: The School District had planned to reduce its Food Service Fund net cash resources below the maximum threshold, but due to timing, was unable to get proper approvals, order and receive purchased goods and/or services by the end of the fiscal year. Due to the supply chain issues that the entire United States was experiencing, items were not delivered before the fiscal year end. Repeat Finding: A similar finding was reported during the single audit for the year ended June 30, 2021. Recommendation: The School District should develop and complete a spend-down plan to ensure it reduces its Food Service Fund net cash resources below the maximum allowable amount. Views of Responsible Officials: The School District agrees with this finding.