FAC Explorer

Audit 332496

FY End
2024-06-30
Total Expended
$6.10M
Findings
8
Programs
18
Organization: Marshall Public Schools (MO)
Year: 2024 Accepted: 2024-12-13
Auditor: Gerding Korte & Chitwood

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
514247 2024-002 - Yes N
514248 2024-002 - Yes N
514249 2024-002 - Yes N
514250 2024-002 - Yes N
1090689 2024-002 - Yes N
1090690 2024-002 - Yes N
1090691 2024-002 - Yes N
1090692 2024-002 - Yes N

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $374,663 Yes 0
10.553 School Breakfast Program $267,726 Yes 1
84.032 Student Loans $204,077 - 0
84.063 Federal Pell Grant Program $178,269 - 0
84.196 Education for Homeless Children and Youth $129,466 - 0
10.555 National School Lunch Program $96,760 Yes 1
84.367 Improving Teacher Quality State Grants $96,089 - 0
84.027 Special Education_grants to States $37,648 - 0
84.365 English Language Acquisition State Grants $35,827 - 0
84.358 Rural Education $28,587 - 0
84.173 Special Education_preschool Grants $9,621 - 0
84.424 Student Support and Academic Enrichment Program $6,612 - 0
84.048 Career and Technical Education -- Basic Grants to States $6,156 - 0
39.003 Donation of Federal Surplus Personal Property $874 - 0
84.425 Education Stabilization Fund $828 Yes 0
93.434 Every Student Succeeds Act/preschool Development Grants $700 - 0
84.369 Grants for State Assessments and Related Activities $575 - 0
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $500 - 0

Contacts

Name Title Type
WXEDLAXY9L55 Caleb Petet Auditee
6608867414 Jeffrey Chitwood, CPA Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.Accordingly, the Schedule includes expenditures of both cash and noncash awards.Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: THE DISTRICT USED THE INDIRECT COST RATE ESTABLISHED BY THE STATE OF MISSOURI The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.
Title: Basis of Presentation Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.Accordingly, the Schedule includes expenditures of both cash and noncash awards.Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: THE DISTRICT USED THE INDIRECT COST RATE ESTABLISHED BY THE STATE OF MISSOURI The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.
Title: Basis of Presentation Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.Accordingly, the Schedule includes expenditures of both cash and noncash awards.Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: THE DISTRICT USED THE INDIRECT COST RATE ESTABLISHED BY THE STATE OF MISSOURI OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:
Title: Basis of Presentation Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.Accordingly, the Schedule includes expenditures of both cash and noncash awards.Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: THE DISTRICT USED THE INDIRECT COST RATE ESTABLISHED BY THE STATE OF MISSOURI Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.
Title: Basis of Presentation Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.Accordingly, the Schedule includes expenditures of both cash and noncash awards.Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: THE DISTRICT USED THE INDIRECT COST RATE ESTABLISHED BY THE STATE OF MISSOURI Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.
Title: Basis of Presentation Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.Accordingly, the Schedule includes expenditures of both cash and noncash awards.Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: THE DISTRICT USED THE INDIRECT COST RATE ESTABLISHED BY THE STATE OF MISSOURI Accordingly, the Schedule includes expenditures of both cash and noncash awards.
Title: Basis of Presentation Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.Accordingly, the Schedule includes expenditures of both cash and noncash awards.Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: THE DISTRICT USED THE INDIRECT COST RATE ESTABLISHED BY THE STATE OF MISSOURI Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.
Title: Basis of Presentation Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.Accordingly, the Schedule includes expenditures of both cash and noncash awards.Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: THE DISTRICT USED THE INDIRECT COST RATE ESTABLISHED BY THE STATE OF MISSOURI The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Basis of Presentation Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.Accordingly, the Schedule includes expenditures of both cash and noncash awards.Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: THE DISTRICT USED THE INDIRECT COST RATE ESTABLISHED BY THE STATE OF MISSOURI Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.
Title: Basis of Presentation Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with 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 position, or cash flows of the District. The Uniform Guidance requires a schedule that provides total federal awards expended for each federal program and the Catalog of Federal Domestic Assistance (CFDA) number or other identifying number when the CFDA information is not available.The Schedule includes all federal awards administered by Benton County R-1 School District, Missouri.OMB Compliance Supplement includes these definitions, which govern the contents of the Schedule:Federal financial assistance means assistance that non-Federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food, commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals.Federal award means Federal financial assistance and Federal cost-reimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities. It does not include procurement contracts, under-grants or contracts, used to buy goods or services from vendors.Accordingly, the Schedule includes expenditures of both cash and noncash awards.Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is described in Note 1 to the District’s basic financial statements.The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.Commodities received were valued by the food service section of the Department of Elementary and Secondary Education.Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: THE DISTRICT USED THE INDIRECT COST RATE ESTABLISHED BY THE STATE OF MISSOURI Subrecipients - The District provided no federal awards to subrecipients during the year ended June 30, 2024.

Finding Details

Finding 2024-002
Child Nutrition Cluster - CFDA No. 10.553, 10.555 - Grant No. 097-129 Condition: Marshall Public Schools must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $516,705. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $516,705 based on the amounts in the fund balance of $933,345 above the three months operating costs of $416,640. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. View of Responsible Officials & Planned Corrective Action: The district has in FY25 allocated much of the funds in excess from the child nutrition cluster to invest in equipment. We have to date, spent the funds down on Freezers, cafeteria tables, coolers, and other such equipment as is allowable for the funds. After speaking with food and nutrition services at DESE, we understand that this surplus comes from the state reimbursements being higher during COVID than what they are post covid. Meaning the rate we were getting reimbursed for free/reduced was higher than the cost, which built the surplus. We are confident that this excess is going to continue being dwindled down, now that our reimbursements are less than the cost of the 3rd party vendors charges to us. However, we are not allowed to use it on unpaid lunch balances, so we have to continue running that surplus for at least another year. This excess is going to start coming down on its own through necessary investments in infrastructure.
Finding 2024-002
Child Nutrition Cluster - CFDA No. 10.553, 10.555 - Grant No. 097-129 Condition: Marshall Public Schools must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $516,705. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $516,705 based on the amounts in the fund balance of $933,345 above the three months operating costs of $416,640. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. View of Responsible Officials & Planned Corrective Action: The district has in FY25 allocated much of the funds in excess from the child nutrition cluster to invest in equipment. We have to date, spent the funds down on Freezers, cafeteria tables, coolers, and other such equipment as is allowable for the funds. After speaking with food and nutrition services at DESE, we understand that this surplus comes from the state reimbursements being higher during COVID than what they are post covid. Meaning the rate we were getting reimbursed for free/reduced was higher than the cost, which built the surplus. We are confident that this excess is going to continue being dwindled down, now that our reimbursements are less than the cost of the 3rd party vendors charges to us. However, we are not allowed to use it on unpaid lunch balances, so we have to continue running that surplus for at least another year. This excess is going to start coming down on its own through necessary investments in infrastructure.
Finding 2024-002
Child Nutrition Cluster - CFDA No. 10.553, 10.555 - Grant No. 097-129 Condition: Marshall Public Schools must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $516,705. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $516,705 based on the amounts in the fund balance of $933,345 above the three months operating costs of $416,640. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. View of Responsible Officials & Planned Corrective Action: The district has in FY25 allocated much of the funds in excess from the child nutrition cluster to invest in equipment. We have to date, spent the funds down on Freezers, cafeteria tables, coolers, and other such equipment as is allowable for the funds. After speaking with food and nutrition services at DESE, we understand that this surplus comes from the state reimbursements being higher during COVID than what they are post covid. Meaning the rate we were getting reimbursed for free/reduced was higher than the cost, which built the surplus. We are confident that this excess is going to continue being dwindled down, now that our reimbursements are less than the cost of the 3rd party vendors charges to us. However, we are not allowed to use it on unpaid lunch balances, so we have to continue running that surplus for at least another year. This excess is going to start coming down on its own through necessary investments in infrastructure.
Finding 2024-002
Child Nutrition Cluster - CFDA No. 10.553, 10.555 - Grant No. 097-129 Condition: Marshall Public Schools must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $516,705. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $516,705 based on the amounts in the fund balance of $933,345 above the three months operating costs of $416,640. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. View of Responsible Officials & Planned Corrective Action: The district has in FY25 allocated much of the funds in excess from the child nutrition cluster to invest in equipment. We have to date, spent the funds down on Freezers, cafeteria tables, coolers, and other such equipment as is allowable for the funds. After speaking with food and nutrition services at DESE, we understand that this surplus comes from the state reimbursements being higher during COVID than what they are post covid. Meaning the rate we were getting reimbursed for free/reduced was higher than the cost, which built the surplus. We are confident that this excess is going to continue being dwindled down, now that our reimbursements are less than the cost of the 3rd party vendors charges to us. However, we are not allowed to use it on unpaid lunch balances, so we have to continue running that surplus for at least another year. This excess is going to start coming down on its own through necessary investments in infrastructure.
Finding 2024-002
Child Nutrition Cluster - CFDA No. 10.553, 10.555 - Grant No. 097-129 Condition: Marshall Public Schools must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $516,705. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $516,705 based on the amounts in the fund balance of $933,345 above the three months operating costs of $416,640. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. View of Responsible Officials & Planned Corrective Action: The district has in FY25 allocated much of the funds in excess from the child nutrition cluster to invest in equipment. We have to date, spent the funds down on Freezers, cafeteria tables, coolers, and other such equipment as is allowable for the funds. After speaking with food and nutrition services at DESE, we understand that this surplus comes from the state reimbursements being higher during COVID than what they are post covid. Meaning the rate we were getting reimbursed for free/reduced was higher than the cost, which built the surplus. We are confident that this excess is going to continue being dwindled down, now that our reimbursements are less than the cost of the 3rd party vendors charges to us. However, we are not allowed to use it on unpaid lunch balances, so we have to continue running that surplus for at least another year. This excess is going to start coming down on its own through necessary investments in infrastructure.
Finding 2024-002
Child Nutrition Cluster - CFDA No. 10.553, 10.555 - Grant No. 097-129 Condition: Marshall Public Schools must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $516,705. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $516,705 based on the amounts in the fund balance of $933,345 above the three months operating costs of $416,640. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. View of Responsible Officials & Planned Corrective Action: The district has in FY25 allocated much of the funds in excess from the child nutrition cluster to invest in equipment. We have to date, spent the funds down on Freezers, cafeteria tables, coolers, and other such equipment as is allowable for the funds. After speaking with food and nutrition services at DESE, we understand that this surplus comes from the state reimbursements being higher during COVID than what they are post covid. Meaning the rate we were getting reimbursed for free/reduced was higher than the cost, which built the surplus. We are confident that this excess is going to continue being dwindled down, now that our reimbursements are less than the cost of the 3rd party vendors charges to us. However, we are not allowed to use it on unpaid lunch balances, so we have to continue running that surplus for at least another year. This excess is going to start coming down on its own through necessary investments in infrastructure.
Finding 2024-002
Child Nutrition Cluster - CFDA No. 10.553, 10.555 - Grant No. 097-129 Condition: Marshall Public Schools must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $516,705. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $516,705 based on the amounts in the fund balance of $933,345 above the three months operating costs of $416,640. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. View of Responsible Officials & Planned Corrective Action: The district has in FY25 allocated much of the funds in excess from the child nutrition cluster to invest in equipment. We have to date, spent the funds down on Freezers, cafeteria tables, coolers, and other such equipment as is allowable for the funds. After speaking with food and nutrition services at DESE, we understand that this surplus comes from the state reimbursements being higher during COVID than what they are post covid. Meaning the rate we were getting reimbursed for free/reduced was higher than the cost, which built the surplus. We are confident that this excess is going to continue being dwindled down, now that our reimbursements are less than the cost of the 3rd party vendors charges to us. However, we are not allowed to use it on unpaid lunch balances, so we have to continue running that surplus for at least another year. This excess is going to start coming down on its own through necessary investments in infrastructure.
Finding 2024-002
Child Nutrition Cluster - CFDA No. 10.553, 10.555 - Grant No. 097-129 Condition: Marshall Public Schools must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $516,705. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $516,705 based on the amounts in the fund balance of $933,345 above the three months operating costs of $416,640. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. View of Responsible Officials & Planned Corrective Action: The district has in FY25 allocated much of the funds in excess from the child nutrition cluster to invest in equipment. We have to date, spent the funds down on Freezers, cafeteria tables, coolers, and other such equipment as is allowable for the funds. After speaking with food and nutrition services at DESE, we understand that this surplus comes from the state reimbursements being higher during COVID than what they are post covid. Meaning the rate we were getting reimbursed for free/reduced was higher than the cost, which built the surplus. We are confident that this excess is going to continue being dwindled down, now that our reimbursements are less than the cost of the 3rd party vendors charges to us. However, we are not allowed to use it on unpaid lunch balances, so we have to continue running that surplus for at least another year. This excess is going to start coming down on its own through necessary investments in infrastructure.