FAC Explorer

Audit 47279

FY End
2022-06-30
Total Expended
$1.30M
Findings
16
Programs
13
Organization: Potterville Public Schools (MI)
Year: 2022 Accepted: 2022-10-26
Auditor: Maner Costerisan

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44388 2022-001 Significant Deficiency Yes N
44389 2022-001 Significant Deficiency Yes N
44390 2022-001 Significant Deficiency Yes N
44391 2022-001 Significant Deficiency Yes N
44392 2022-001 Significant Deficiency Yes N
44393 2022-001 Significant Deficiency Yes N
44394 2022-001 Significant Deficiency Yes N
44395 2022-001 Significant Deficiency Yes N
620830 2022-001 Significant Deficiency Yes N
620831 2022-001 Significant Deficiency Yes N
620832 2022-001 Significant Deficiency Yes N
620833 2022-001 Significant Deficiency Yes N
620834 2022-001 Significant Deficiency Yes N
620835 2022-001 Significant Deficiency Yes N
620836 2022-001 Significant Deficiency Yes N
620837 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
10.553 Covid-19 - School Breakfast Program $90,514 Yes 1
84.002 Adult Education - Basic Grants to States $78,622 - 0
84.425 Covid-19 - Education Stabilization Fund $64,260 - 0
10.555 National School Lunch Program $29,822 Yes 1
84.367 Improving Teacher Quality State Grants $28,900 - 0
10.555 Covid-19 - National School Lunch Program $22,476 Yes 1
10.559 Covid-19 - Summer Food Service Program for Children $20,958 Yes 1
93.558 Temporary Assistance for Needy Families $12,134 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
84.010 Title I Grants to Local Educational Agencies $9,862 - 0
93.778 Medical Assistance Program $1,324 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0
10.558 Covid-19 - Child and Adult Care Food Program $180 - 0

Contacts

Name Title Type
ELJ1R3QN25R9 Kim Lindsay Auditee
6169752822 Jeffrey Staley, CPA Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shownon the schedule represent adjustments or credits made in the normal course of business to amounts reportedas expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial
Finding 2022-001
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question Costs: None Cause: The District participated in the unanticipated closure meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future. The District has an active corrective action plan that has been approved by MDE and has spent down substantial