FAC Explorer

Audit 49986

FY End
2022-06-30
Total Expended
$878,307
Findings
6
Programs
9
Organization: Johannesburg-Lewiston Area Schools (MI)
Year: 2022 Accepted: 2022-12-01
Auditor: Baird Cotter & Bishop PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61967 2022-002 - Yes N
61968 2022-002 - Yes N
61969 2022-002 - Yes N
638409 2022-002 - Yes N
638410 2022-002 - Yes N
638411 2022-002 - Yes N

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $313,177 Yes 1
84.010 Title I Grants to Local Educational Agencies $157,986 - 0
10.553 School Breakfast Program $154,013 Yes 1
84.367 Improving Teacher Quality State Grants $34,866 - 0
10.558 Child and Adult Care Food Program $16,797 - 0
84.424 Student Support and Academic Enrichment Program $13,031 - 0
93.778 Medical Assistance Program $3,984 - 0
84.425 Education Stabilization Fund $2,718 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
N9HNPBCTURJ6 Katy Xenakis-Makowski Auditee
9897321773 Derek Graham Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Johannesburg-Lewiston Area Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Johannesburg-Lewiston Area Schools under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Johannesburg-Lewiston Area Schools, it is not intended to and does not present the financial position, changes in net position, or cash flows of Johannesburg-Lewiston Area Schools. The District does not pass-through federal funds to sub recipients.
Title: GRANT AUDITOR REPORT Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Johannesburg-Lewiston Area Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Management has utilized the NexSys Cash Management System Grant Auditor Report in preparing the schedule of expenditures of federal awards.
Title: RECONCILIATION OF REVENUES WITH EXPENDITURES FOR FEDERAL FINANCIAL ASSISTAN Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Johannesburg-Lewiston Area Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SEE TABLE IN NOTES TO SEFA.
Title: RECONCILIATION OF GRANT AUDITOR REPORT WITH SCHEDULE OF EXPENDITURES OF FED Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Johannesburg-Lewiston Area Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SEE TABLE IN NOTES TO SEFA.

Finding Details

Finding 2022-002
2022-002 Immaterial Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $256,350 at fiscal year-end exceeded the allowable three months of expenditures threshold by $113,563. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director and Finance Director have a spend down plan in place and is working on purchasing new equipment, which includes new refrigerators and milk coolers. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-002
2022-002 Immaterial Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $256,350 at fiscal year-end exceeded the allowable three months of expenditures threshold by $113,563. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director and Finance Director have a spend down plan in place and is working on purchasing new equipment, which includes new refrigerators and milk coolers. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-002
2022-002 Immaterial Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $256,350 at fiscal year-end exceeded the allowable three months of expenditures threshold by $113,563. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director and Finance Director have a spend down plan in place and is working on purchasing new equipment, which includes new refrigerators and milk coolers. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-002
2022-002 Immaterial Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $256,350 at fiscal year-end exceeded the allowable three months of expenditures threshold by $113,563. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director and Finance Director have a spend down plan in place and is working on purchasing new equipment, which includes new refrigerators and milk coolers. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-002
2022-002 Immaterial Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $256,350 at fiscal year-end exceeded the allowable three months of expenditures threshold by $113,563. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director and Finance Director have a spend down plan in place and is working on purchasing new equipment, which includes new refrigerators and milk coolers. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.
Finding 2022-002
2022-002 Immaterial Noncompliance (Special Test & Provisions) Federal Program: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211971, 221971, 211961, 221961 and 220910-2022 (COVID-19) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition: As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the Summer Seamless Option (SSO) under the National School Lunch and National School Breakfast Programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $256,350 at fiscal year-end exceeded the allowable three months of expenditures threshold by $113,563. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2023 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director and Finance Director have a spend down plan in place and is working on purchasing new equipment, which includes new refrigerators and milk coolers. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.