Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.
Assistance Listing Number, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim 7 CFR sections 210.8, 220.11, 215.10, and 225.15 (c)). Upon preparation of meal reimbursement claims, the School District is required to have controls in place to ensure the accuracy of the request for reimbursement.
Condition - The School District did not have a documented review process in place over the reimbursement requests. Meal counts entered into the Michigan Nutrition Data (MIND) system took place without a secondary review, which could result in incorrect reporting of the number of meals.
Cause and Effect - The preparation of the request without a secondary review could result in incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education.
Recommendation - The School District should implement a control where the monthly reimbursement request is reviewed and approval is documented to ensure the submission is mechanically accurate and that it agrees with the School District’s summary of daily count spreadsheets.
Views of Responsible Officials and Corrective Action Plan - The School District's business office performed a detailed review of all meal claim submissions for the 2023 2024 fiscal year. Claims were accurately completed as was the amount of reimbursement paid by the Michigan Department of Education. The business office has since implemented a formalized internal control procedure beginning in July 2024, whereby a formal documented review of the meal claim submission is performed.
Assistance Listing, Federal Agency, and Program Name - 10.553, 10.555, and 10.559, U.S. Department of Agriculture, Child Nutrition Cluster
Federal Award Identification Number and Year - 241960, 240910, 241970, 240900
Pass-through Entity - Michigan Department of Education
Finding Type - Material weakness
Repeat Finding - No
Criteria - The School District is required to account for all revenues and expenditures of its non profit school food service account in accordance with state and federal requirements. In order to ensure that federal reimbursement payments received monthly from the Michigan Department of Education are correctly credited to the school food service account, monthly bank reconciliations should be prepared and reviewed by individuals with requisite skill and experience.
Condition - During the 2024 fiscal year, bank reconciliations and monthly reconciliations of food service revenues and expenditures of the school food service account were not being prepared and reviewed in a timely manner.
Cause and Effect - As there was an unexpected reduction in staff resources in the business office, there were not adequate resources to perform these accounting reconciliations on a timely regular basis during the year. The absence of these timely regular reviews could lead to undiscovered errors in the school food service account and material noncompliance with federal regulations.
Recommendation - When there is a reduction in available staff resources in the business office we recommend that the School District develop a contingency plan to make certain that it has a plan to ensure that all bank and accounting reconciliations for the school food service account are completed timely and accurately during each month end close.
Views of Responsible Officials and Planned Corrective Actions - The School District agrees that its internal control structure should ensure that accounting reconciliations are prepared and reviewed in a timely manner during the year. Although the School District had an intergovernmental Agreement with its Intermediate School District to provide business services, such services could not be rendered due to inability to find staffing. Near the end of the 2024 fiscal year, a Finance Director was directly hired into the business office. Monthly reconciliations of accounting records and closing of monthly books are now being performed and reviewed on a timely basis.