FAC Explorer

Audit 52979

FY End
2022-06-30
Total Expended
$9.89M
Findings
20
Programs
27
Organization: Oak Park School District (MI)
Year: 2022 Accepted: 2022-12-05
Auditor: Yeo and Yeo PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47420 2022-001 Significant Deficiency Yes J
47421 2022-001 Significant Deficiency Yes J
47422 2022-001 Significant Deficiency Yes J
47423 2022-001 Significant Deficiency Yes J
47424 2022-001 Significant Deficiency Yes J
52073 2022-001 Significant Deficiency Yes J
52074 2022-001 Significant Deficiency Yes J
52075 2022-001 Significant Deficiency Yes J
52076 2022-001 Significant Deficiency Yes J
52077 2022-001 Significant Deficiency Yes J
623862 2022-001 Significant Deficiency Yes J
623863 2022-001 Significant Deficiency Yes J
623864 2022-001 Significant Deficiency Yes J
623865 2022-001 Significant Deficiency Yes J
623866 2022-001 Significant Deficiency Yes J
628515 2022-001 Significant Deficiency Yes J
628516 2022-001 Significant Deficiency Yes J
628517 2022-001 Significant Deficiency Yes J
628518 2022-001 Significant Deficiency Yes J
628519 2022-001 Significant Deficiency Yes J

Programs

ALN Program Spent Major Findings
84.425 Covid-19 Education Stabilization Fund $1.65M Yes 0
84.010 Title I Grants to Local Educational Agencies $844,891 - 0
10.555 Covid-19 National School Lunch Program $615,400 - 1
17.207 Employment Service/wagner-Peyser Funded Activities $501,875 - 0
17.258 Wia Adult Program $432,699 Yes 0
84.027 Special Education_grants to States $403,410 - 0
10.553 Covid-19 School Breakfast Program $353,400 - 1
10.559 Covid-19 Summer Food Service Program for Children $332,264 - 1
17.259 Wia Youth Activities $299,502 Yes 0
84.367 Improving Teacher Quality State Grants $165,038 - 0
17.278 Wia Dislocated Worker Formula Grants $125,742 Yes 0
17.245 Trade Adjustment Assistance $116,502 - 0
10.555 National School Lunch Program $99,783 - 1
84.424 Student Support and Academic Enrichment Program $87,403 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $85,200 - 0
17.268 H-1b Job Training Grants $36,338 - 0
84.027 Covid-19 Special Education_grants to States $27,243 - 0
84.173 Special Education_preschool Grants $19,598 - 0
84.365 English Language Acquisition State Grants $16,652 - 0
93.778 Medical Assistance Program $11,539 - 0
17.225 Unemployment Insurance $5,110 - 0
93.558 Temporary Assistance for Needy Families $4,221 - 0
93.036 Disaster Grants - Public Assistance $3,386 - 0
10.649 Covid-19 Pandemic Ebt Administrative Costs $3,063 - 0
10.558 Child and Adult Care Food Program $2,269 - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $2,044 - 0
17.277 Workforce Investment Act (wia) National Emergency Grants $1,621 - 0

Contacts

Name Title Type
NEWCHR58KNA6 Edwina Hill Auditee
2483367714 Jamie Rivette Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. 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 (SEFA) includes the federal award activity of Oak Park School District 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Oak Park School District, it is not intended to and does not present the financial position or changes in financial position of Oak Park School District.
Title: Reconciliation to Financial Statements Accounting Policies: Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal sources revenue per the financial statements: $9,308,105, Reconciling items: Current year deferred inflows of resources: $1,877,035, Beneficiary payments not reported on SEFA: ($520,295), Prior year deferred inflows of resources: ($777,875), Total expenditures of federal awards: $9,886,970.
Title: Funds Transferred to Subrecipients Accounting Policies: Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schools District did not transfer any federal funds to subrecipients during the fiscal year.
Title: Michigan Department of Education Disclosures Accounting Policies: Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal amounts reported on the grant auditor report are in agreement with the SEFA. The amounts reported on the recipient entitlement balance report agree with the SEFA for U.S.D.A. donated food commodities.

Finding Details

Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.
Finding 2022-001
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.