Audit 374247

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 10.553/10.582/10.555/10.559, Child Nutrition Cluster Federal Award Identification Number and Year: 241970/ 251970/ 241960/ 241980/ 251980/ 251980 Pass-through Entity – Michigan Department of Education Finding Type – Material weakness in internal control over compliance Repeat Finding - No Criteria – The Academy 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. Upon preparation of meal reimbursement claims, the Academy is required to have controls in place to ensure the accuracy of the request for reimbursement. Condition – The Academy claimed reimbursement in excess of meals served for two of the four months tested. Identification of How Questioned Costs Were Computed – Questioned costs represent meals claimed in excess of those served. Questioned Costs – $182 Cause – The Academy did not properly review reports to ensure the proper reimbursement was claimed. Effect – The Academy received funds in excess of the amounts that should have been received. Recommendation – The Academy 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 Academy’s summary of daily count spreadsheets. View of Responsible Officials and Corrective Action Plan – Management agrees with the finding. See corrective action plan

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 10.553/10.582/10.555/10.559, Child Nutrition Cluster Federal Award Identification Number and Year: 241970/ 251970/ 241960/ 241980/ 251980/ 251980 Pass-through Entity – Michigan Department of Education Finding Type – Material weakness in internal control over compliance Repeat Finding - No Criteria – A recipient of federal awards is required to follow their own internal procurement policies, and to determine that vendors being paid with federal funds are not suspended or debarred from doing business with the government. Suspension and debarment procedures are required whenever the amount disbursed to a single vendor in a given fiscal year is expected to be at least $25,000. Condition – Management was not able to provide evidence of checking for suspension and debarment of the food sponsor. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – Management was not fully versed in the requirements related to procurement, and suspension and debarment. Effect – As a result of this condition, the Academy was exposed to the risk that disbursements of federal awards could be made to vendors suspended or debarred by the federal government. The Academy also did not fully comply with the requirements of the Uniform Guidance. Recommendation – We recommend that the Academy implement policies and procedures to assure that documentation is retained related to compliance with internal procurement policies. We further recommend that the Academy implement a procedure that requires all vendors, expected to be paid more than $25,000, be checked for active exclusions at www.sam.gov. View of Responsible Officials and Corrective Action Plan – Management agrees with the finding. See corrective action plan.

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 10.553/10.582/10.555/10.559, Child Nutrition Cluster Federal Award Identification Number and Year: 241970/ 251970/ 241960/ 241980/ 251980/ 251980 Pass-through Entity – Michigan Department of Education Finding Type – Material weakness in internal control over compliance Repeat Finding - No Criteria – Vendor contracts must be approved by the Academy’s Board. Condition – The renewal of the contract for the Food Service vendor was not approved by the Academy’s Board. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – The Academy failed to include the food service vendor renewal as a part of the Board meeting packet. Effect –The renewal contract was not approved by the Boad. Recommendation – We recommend the Food Service vendor contract be reviewed and approved by the Academy’s Board on an annual basis. View of Responsible Officials and Corrective Action Plan – Management agrees with the finding. See corrective action plan.

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 10.553/10.582/10.555/10.559, Child Nutrition Cluster Federal Award Identification Number and Year: 241970/ 251970/ 241960/ 241980/ 251980/ 251980 Pass-through Entity – Michigan Department of Education Finding Type – Material weakness in internal control over compliance Repeat Finding - No Criteria – The Academy did not complete the Self-Monitoring Reviews for Afterschool Snack Program within required timeframe. Condition – The Academy did not complete the Self-Monitoring Reviews for Afterschool Snack Program in a timely manner. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause – The Academy did not submit the reports prior to the deadline. Effect – The Academy submitted the Self-Monitoring Reviews for Afterschool Snack Program after the required deadline. Recommendation – We recommend that management develop procedures to ensure reports are completed in a timely manner. View of Responsible Officials and Corrective Action Plan – Management agrees with the finding. See corrective action plan.