Audit 59421

FY End
2022-06-30
Total Expended
$3.08M
Findings
14
Programs
9
Organization: Lakewood Public Schools (MI)
Year: 2022 Accepted: 2022-10-18
Auditor: Maner Costerisan

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
61880 2022-001 Significant Deficiency Yes N
61881 2022-001 Significant Deficiency Yes N
61882 2022-001 Significant Deficiency Yes N
61883 2022-001 Significant Deficiency Yes N
61884 2022-001 Significant Deficiency Yes N
61885 2022-001 Significant Deficiency Yes N
61886 2022-001 Significant Deficiency Yes N
638322 2022-001 Significant Deficiency Yes N
638323 2022-001 Significant Deficiency Yes N
638324 2022-001 Significant Deficiency Yes N
638325 2022-001 Significant Deficiency Yes N
638326 2022-001 Significant Deficiency Yes N
638327 2022-001 Significant Deficiency Yes N
638328 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $215,135 Yes 1
10.559 Summer Food Service Program for Children $78,860 Yes 1
84.027 Special Education_grants to States $76,927 - 0
84.367 Improving Teacher Quality State Grants $29,640 - 0
84.425 Education Stabilization Fund $21,750 Yes 0
84.010 Title I Grants to Local Educational Agencies $11,436 - 0
10.649 Pandemic Ebt Administrative Costs $614 - 0
84.424 Student Support and Academic Enrichment Program $534 - 0
10.555 National School Lunch Program $519 Yes 1

Contacts

Name Title Type
S1C6C8U6E381 Pamela Behling Auditee
6163747434 Jeffrey L. 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. 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. Lakewood Public Schools has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Management has utilized the NexSys, Cash Management System (CMS), and Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards. The District does not pass-through federal awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.
Finding 2022-001: Significant Deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 221961, 221980, 211971, 210904, 220904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Lakewood Public Schools 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 program, as well as experiencing delays on delivery of food service equipment, which is 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 developing an implementation plan and procedures to prevent this in the future.