FAC Explorer

Audit 50976

FY End
2022-06-30
Total Expended
$1.90M
Findings
8
Programs
11
Organization: Mancelona Public Schools (MI)
Year: 2022 Accepted: 2022-12-01
Auditor: Baird Cotter and Bishop PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
45448 2022-001 - Yes N
45449 2022-001 - Yes N
45450 2022-001 - Yes N
45451 2022-001 - Yes N
621890 2022-001 - Yes N
621891 2022-001 - Yes N
621892 2022-001 - Yes N
621893 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $611,766 - 0
10.555 National School Lunch Program $493,257 Yes 1
84.010 Title I Grants to Local Educational Agencies $241,322 - 0
10.553 School Breakfast Program $153,075 Yes 1
10.558 Child and Adult Care Food Program $44,115 - 0
84.367 Improving Teacher Quality State Grants $38,770 - 0
84.424 Student Support and Academic Enrichment Program $17,838 - 0
10.559 Summer Food Service Program for Children $16,300 Yes 1
93.575 Child Care and Development Block Grant $14,464 - 0
93.778 Medical Assistance Program $4,159 - 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0

Contacts

Name Title Type
CK7NH1CGPYA4 Jeffery Dirosa Auditee
2315879767 Ryan Howell Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Summary of Significant 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. Mancelona Public 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 Mancelona Public 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 Mancelona Public Schools, it is not intended to and does not present the financial position, changes in net position, or cash flows of Mancelona Public Schools. The District does not pass through federal awards.
Title: Reconciliation of Revenues with Expenditures for Federal Financial Assistan Accounting Policies: Summary of Significant 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. Mancelona Public 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: Summary of Significant 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. Mancelona Public 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 cash management system (CMS) and the Grant Auditor Report in preparing the schedule of expenditures of federal awards. The District does not pass through federal funds to sub recipients. See table in Notes to SEFA.

Finding Details

Finding 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 & 10.559 Federal Award Number: 211971, 221971, 221961, 211961, 220910-2022, 210904, 220904 Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) 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 seamless summer option program. 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 $300,844 at fiscal year-end exceeded the allowable three months of expenditures threshold by $15,150. 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 has a spend down plan in place and is purchasing equipment to spend down the remaining excess. 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 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 & 10.559 Federal Award Number: 211971, 221971, 221961, 211961, 220910-2022, 210904, 220904 Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) 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 seamless summer option program. 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 $300,844 at fiscal year-end exceeded the allowable three months of expenditures threshold by $15,150. 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 has a spend down plan in place and is purchasing equipment to spend down the remaining excess. 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 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 & 10.559 Federal Award Number: 211971, 221971, 221961, 211961, 220910-2022, 210904, 220904 Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) 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 seamless summer option program. 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 $300,844 at fiscal year-end exceeded the allowable three months of expenditures threshold by $15,150. 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 has a spend down plan in place and is purchasing equipment to spend down the remaining excess. 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 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 & 10.559 Federal Award Number: 211971, 221971, 221961, 211961, 220910-2022, 210904, 220904 Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) 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 seamless summer option program. 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 $300,844 at fiscal year-end exceeded the allowable three months of expenditures threshold by $15,150. 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 has a spend down plan in place and is purchasing equipment to spend down the remaining excess. 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 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 & 10.559 Federal Award Number: 211971, 221971, 221961, 211961, 220910-2022, 210904, 220904 Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) 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 seamless summer option program. 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 $300,844 at fiscal year-end exceeded the allowable three months of expenditures threshold by $15,150. 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 has a spend down plan in place and is purchasing equipment to spend down the remaining excess. 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 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 & 10.559 Federal Award Number: 211971, 221971, 221961, 211961, 220910-2022, 210904, 220904 Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) 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 seamless summer option program. 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 $300,844 at fiscal year-end exceeded the allowable three months of expenditures threshold by $15,150. 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 has a spend down plan in place and is purchasing equipment to spend down the remaining excess. 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 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 & 10.559 Federal Award Number: 211971, 221971, 221961, 211961, 220910-2022, 210904, 220904 Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) 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 seamless summer option program. 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 $300,844 at fiscal year-end exceeded the allowable three months of expenditures threshold by $15,150. 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 has a spend down plan in place and is purchasing equipment to spend down the remaining excess. 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 2022-001
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster ALN Number(s): 10.553 & 10.555 & 10.559 Federal Award Number: 211971, 221971, 221961, 211961, 220910-2022, 210904, 220904 Federal Award Year: July 1, 2021 to June 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) 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 seamless summer option program. 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 $300,844 at fiscal year-end exceeded the allowable three months of expenditures threshold by $15,150. 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 has a spend down plan in place and is purchasing equipment to spend down the remaining excess. 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.