FAC Explorer

Audit 7910

FY End
2023-06-30
Total Expended
$6.84M
Findings
14
Programs
15
Organization: Orchard View Schools (MI)
Year: 2023 Accepted: 2023-12-21
Auditor: Brickley Delong PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6043 2023-004 Significant Deficiency - L
6044 2023-004 Significant Deficiency - L
6045 2023-005 Significant Deficiency - N
6046 2023-005 Significant Deficiency - N
6047 2023-005 Significant Deficiency - N
6048 2023-005 Significant Deficiency - N
6049 2023-005 Significant Deficiency - N
582485 2023-004 Significant Deficiency - L
582486 2023-004 Significant Deficiency - L
582487 2023-005 Significant Deficiency - N
582488 2023-005 Significant Deficiency - N
582489 2023-005 Significant Deficiency - N
582490 2023-005 Significant Deficiency - N
582491 2023-005 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $2.12M Yes 1
10.553 School Breakfast Program $456,874 Yes 1
84.002 Adult Education - Basic Grants to States $263,752 - 0
10.559 Summer Food Service Program for Children $180,714 Yes 1
84.367 Improving Teacher Quality State Grants $128,040 - 0
10.558 Child and Adult Care Food Program $101,868 - 0
84.010 Title I Grants to Local Educational Agencies $100,402 - 0
93.600 Head Start $87,318 - 0
84.027 Special Education_grants to States $58,949 - 0
84.424 Student Support and Academic Enrichment Program $31,468 - 0
84.173 Special Education_preschool Grants $12,637 - 0
10.555 National School Lunch Program $10,671 Yes 1
10.579 Child Nutrition Discretionary Grants Limited Availability $7,858 - 0
93.778 Medical Assistance Program $6,068 - 0
10.649 Pandemic Ebt Administrative Costs $3,135 - 0

Contacts

Name Title Type
R2LNYNJGD521 Heather Lorenz-Babcock Auditee
2317601309 Jennifer Wheeler Auditor
No contacts on file

Notes to SEFA

Title: 3 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the School District under programs of the federal government for the year ended June 30, 2023. 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Management has utilized the Michigan Department of Education NexSys Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards.
Title: 4 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the School District under programs of the federal government for the year ended June 30, 2023. 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Cash or payments in kind received (cash basis) for certain federal programs do not match the Grant Auditor Report because the following payments in the Grant Auditor Report as of June 30, 2022 were not received by the School District until July 2022. See the Notes to the SEFA for chart/table.
Title: 5 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the School District under programs of the federal government for the year ended June 30, 2023. 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Cash or payments in kind received (cash basis) for certain federal programs do not match the Grant Auditor Report because the following payments in the Grant Auditor Report as of June 30, 2023 were not received by the School District until July 2023. See the Notes to the SEFA for chart/table.
Title: 6 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the School District under programs of the federal government for the year ended June 30, 2023. 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The prior year was restated due to a missed accrued revenue. The accrued revenues at July 1, 2022 and prior year expenditures were increased for the following grant: See the Notes to the SEFA for chart/table.
Title: 7 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the School District under programs of the federal government for the year ended June 30, 2023. 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 the School District, it is not intended to and does not present the financial position or change in net position of the School District. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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 shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The School District is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Reconciliation of revenues from federal sources per governmental funds financial statements and expenditures per single audit report Schedule of Expenditures of Federal Awards. See the Notes to the SEFA for chart/table.

Finding Details

Finding 2023-004
Finding 2023-004: Education Stabilization Fund Special Reporting Procedures U.S. Department of Education Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 84.425D and 84.425U Award numbers: COVID-19 213712-2021 and COVID-19 213713-2122 Award year end: September 30, 2024 Specific Requirement: Reporting—Special Reporting Criteria: OMB No. 1810-0749 requires Education Stabilization Fund grantees to submit reports with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Local educational agency/subrecipients submit data to the state education agency (SEA) /Governor for the SEA’s/Governor’s report. Questioned Costs: None. Condition: The required learning loss plan and budget reports were not timely prepared and posted to the transparency page of the Schools District’s website. Context: During our detailed testing of special reporting for the Education Stabilization Fund programs, we noted that the learning loss plan and budget reports were prepared to comply with federal requirements. However, the reports were not timely prepared or timely reviewed by the program supervisor with documented approval. The reports were subsequently prepared after the School District received a letter from the Michigan Department of Education indicating that the School District had missed the reporting due date. Effect: Failure to timely prepare and review special reporting results in non-compliance with federal compliance requirements. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some special reports to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel in federal programs of the requirements for special reporting under Uniform Grant Guidance, and the School District should require the necessary special reports to be timely prepared and reviewed by the appropriate accounting department personnel. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-004
Finding 2023-004: Education Stabilization Fund Special Reporting Procedures U.S. Department of Education Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 84.425D and 84.425U Award numbers: COVID-19 213712-2021 and COVID-19 213713-2122 Award year end: September 30, 2024 Specific Requirement: Reporting—Special Reporting Criteria: OMB No. 1810-0749 requires Education Stabilization Fund grantees to submit reports with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Local educational agency/subrecipients submit data to the state education agency (SEA) /Governor for the SEA’s/Governor’s report. Questioned Costs: None. Condition: The required learning loss plan and budget reports were not timely prepared and posted to the transparency page of the Schools District’s website. Context: During our detailed testing of special reporting for the Education Stabilization Fund programs, we noted that the learning loss plan and budget reports were prepared to comply with federal requirements. However, the reports were not timely prepared or timely reviewed by the program supervisor with documented approval. The reports were subsequently prepared after the School District received a letter from the Michigan Department of Education indicating that the School District had missed the reporting due date. Effect: Failure to timely prepare and review special reporting results in non-compliance with federal compliance requirements. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some special reports to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel in federal programs of the requirements for special reporting under Uniform Grant Guidance, and the School District should require the necessary special reports to be timely prepared and reviewed by the appropriate accounting department personnel. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-005
Finding 2023-005: Child Nutrition Cluster Federal Reimbursement Receipting Procedures U.S. Department of Agriculture Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 10.553, 10.555, and 10.559 Award numbers: 221970, 231970, 220910, 221960, 231960, 220900 and 230900 Award year ends: June 30, 2023 and September 30, 2023 Specific Requirement: Special Tests and Provisions—Non-Profit School Food Service Accounts Criteria: 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i) requires a School District to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. A school food authority must operate its food services on a non-profit basis. All revenue generated by the school food service must be used to operate and improve its food services, and this revenue must be properly and timely credited to the food service account. Questioned Costs: None. Condition: Monthly federal reimbursement receipts were not timely credited to the proper food service revenue accounts. Context: During our detailed testing of monthly federal reimbursement receipts, we noted five of the five monthly receipts tested were properly credited to the corresponding food service revenue accounts. However, the timing of the receipt postings to the general ledger ranged from two to five months after the receipt dates. Effect: School District’s cash and food service revenues were misstated for extended periods throughout the fiscal year, and errors or the misappropriation of funds could have occurred without timely detection. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some food service revenue postings to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel of the requirements for non-profit school food service accounts under Uniform Grant Guidance, and the School District should require payments to be timely receipted and credited to the proper food service accounts. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-005
Finding 2023-005: Child Nutrition Cluster Federal Reimbursement Receipting Procedures U.S. Department of Agriculture Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 10.553, 10.555, and 10.559 Award numbers: 221970, 231970, 220910, 221960, 231960, 220900 and 230900 Award year ends: June 30, 2023 and September 30, 2023 Specific Requirement: Special Tests and Provisions—Non-Profit School Food Service Accounts Criteria: 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i) requires a School District to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. A school food authority must operate its food services on a non-profit basis. All revenue generated by the school food service must be used to operate and improve its food services, and this revenue must be properly and timely credited to the food service account. Questioned Costs: None. Condition: Monthly federal reimbursement receipts were not timely credited to the proper food service revenue accounts. Context: During our detailed testing of monthly federal reimbursement receipts, we noted five of the five monthly receipts tested were properly credited to the corresponding food service revenue accounts. However, the timing of the receipt postings to the general ledger ranged from two to five months after the receipt dates. Effect: School District’s cash and food service revenues were misstated for extended periods throughout the fiscal year, and errors or the misappropriation of funds could have occurred without timely detection. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some food service revenue postings to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel of the requirements for non-profit school food service accounts under Uniform Grant Guidance, and the School District should require payments to be timely receipted and credited to the proper food service accounts. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-005
Finding 2023-005: Child Nutrition Cluster Federal Reimbursement Receipting Procedures U.S. Department of Agriculture Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 10.553, 10.555, and 10.559 Award numbers: 221970, 231970, 220910, 221960, 231960, 220900 and 230900 Award year ends: June 30, 2023 and September 30, 2023 Specific Requirement: Special Tests and Provisions—Non-Profit School Food Service Accounts Criteria: 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i) requires a School District to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. A school food authority must operate its food services on a non-profit basis. All revenue generated by the school food service must be used to operate and improve its food services, and this revenue must be properly and timely credited to the food service account. Questioned Costs: None. Condition: Monthly federal reimbursement receipts were not timely credited to the proper food service revenue accounts. Context: During our detailed testing of monthly federal reimbursement receipts, we noted five of the five monthly receipts tested were properly credited to the corresponding food service revenue accounts. However, the timing of the receipt postings to the general ledger ranged from two to five months after the receipt dates. Effect: School District’s cash and food service revenues were misstated for extended periods throughout the fiscal year, and errors or the misappropriation of funds could have occurred without timely detection. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some food service revenue postings to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel of the requirements for non-profit school food service accounts under Uniform Grant Guidance, and the School District should require payments to be timely receipted and credited to the proper food service accounts. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-005
Finding 2023-005: Child Nutrition Cluster Federal Reimbursement Receipting Procedures U.S. Department of Agriculture Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 10.553, 10.555, and 10.559 Award numbers: 221970, 231970, 220910, 221960, 231960, 220900 and 230900 Award year ends: June 30, 2023 and September 30, 2023 Specific Requirement: Special Tests and Provisions—Non-Profit School Food Service Accounts Criteria: 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i) requires a School District to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. A school food authority must operate its food services on a non-profit basis. All revenue generated by the school food service must be used to operate and improve its food services, and this revenue must be properly and timely credited to the food service account. Questioned Costs: None. Condition: Monthly federal reimbursement receipts were not timely credited to the proper food service revenue accounts. Context: During our detailed testing of monthly federal reimbursement receipts, we noted five of the five monthly receipts tested were properly credited to the corresponding food service revenue accounts. However, the timing of the receipt postings to the general ledger ranged from two to five months after the receipt dates. Effect: School District’s cash and food service revenues were misstated for extended periods throughout the fiscal year, and errors or the misappropriation of funds could have occurred without timely detection. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some food service revenue postings to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel of the requirements for non-profit school food service accounts under Uniform Grant Guidance, and the School District should require payments to be timely receipted and credited to the proper food service accounts. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-005
Finding 2023-005: Child Nutrition Cluster Federal Reimbursement Receipting Procedures U.S. Department of Agriculture Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 10.553, 10.555, and 10.559 Award numbers: 221970, 231970, 220910, 221960, 231960, 220900 and 230900 Award year ends: June 30, 2023 and September 30, 2023 Specific Requirement: Special Tests and Provisions—Non-Profit School Food Service Accounts Criteria: 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i) requires a School District to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. A school food authority must operate its food services on a non-profit basis. All revenue generated by the school food service must be used to operate and improve its food services, and this revenue must be properly and timely credited to the food service account. Questioned Costs: None. Condition: Monthly federal reimbursement receipts were not timely credited to the proper food service revenue accounts. Context: During our detailed testing of monthly federal reimbursement receipts, we noted five of the five monthly receipts tested were properly credited to the corresponding food service revenue accounts. However, the timing of the receipt postings to the general ledger ranged from two to five months after the receipt dates. Effect: School District’s cash and food service revenues were misstated for extended periods throughout the fiscal year, and errors or the misappropriation of funds could have occurred without timely detection. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some food service revenue postings to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel of the requirements for non-profit school food service accounts under Uniform Grant Guidance, and the School District should require payments to be timely receipted and credited to the proper food service accounts. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-004
Finding 2023-004: Education Stabilization Fund Special Reporting Procedures U.S. Department of Education Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 84.425D and 84.425U Award numbers: COVID-19 213712-2021 and COVID-19 213713-2122 Award year end: September 30, 2024 Specific Requirement: Reporting—Special Reporting Criteria: OMB No. 1810-0749 requires Education Stabilization Fund grantees to submit reports with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Local educational agency/subrecipients submit data to the state education agency (SEA) /Governor for the SEA’s/Governor’s report. Questioned Costs: None. Condition: The required learning loss plan and budget reports were not timely prepared and posted to the transparency page of the Schools District’s website. Context: During our detailed testing of special reporting for the Education Stabilization Fund programs, we noted that the learning loss plan and budget reports were prepared to comply with federal requirements. However, the reports were not timely prepared or timely reviewed by the program supervisor with documented approval. The reports were subsequently prepared after the School District received a letter from the Michigan Department of Education indicating that the School District had missed the reporting due date. Effect: Failure to timely prepare and review special reporting results in non-compliance with federal compliance requirements. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some special reports to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel in federal programs of the requirements for special reporting under Uniform Grant Guidance, and the School District should require the necessary special reports to be timely prepared and reviewed by the appropriate accounting department personnel. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-004
Finding 2023-004: Education Stabilization Fund Special Reporting Procedures U.S. Department of Education Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 84.425D and 84.425U Award numbers: COVID-19 213712-2021 and COVID-19 213713-2122 Award year end: September 30, 2024 Specific Requirement: Reporting—Special Reporting Criteria: OMB No. 1810-0749 requires Education Stabilization Fund grantees to submit reports with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Local educational agency/subrecipients submit data to the state education agency (SEA) /Governor for the SEA’s/Governor’s report. Questioned Costs: None. Condition: The required learning loss plan and budget reports were not timely prepared and posted to the transparency page of the Schools District’s website. Context: During our detailed testing of special reporting for the Education Stabilization Fund programs, we noted that the learning loss plan and budget reports were prepared to comply with federal requirements. However, the reports were not timely prepared or timely reviewed by the program supervisor with documented approval. The reports were subsequently prepared after the School District received a letter from the Michigan Department of Education indicating that the School District had missed the reporting due date. Effect: Failure to timely prepare and review special reporting results in non-compliance with federal compliance requirements. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some special reports to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel in federal programs of the requirements for special reporting under Uniform Grant Guidance, and the School District should require the necessary special reports to be timely prepared and reviewed by the appropriate accounting department personnel. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-005
Finding 2023-005: Child Nutrition Cluster Federal Reimbursement Receipting Procedures U.S. Department of Agriculture Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 10.553, 10.555, and 10.559 Award numbers: 221970, 231970, 220910, 221960, 231960, 220900 and 230900 Award year ends: June 30, 2023 and September 30, 2023 Specific Requirement: Special Tests and Provisions—Non-Profit School Food Service Accounts Criteria: 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i) requires a School District to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. A school food authority must operate its food services on a non-profit basis. All revenue generated by the school food service must be used to operate and improve its food services, and this revenue must be properly and timely credited to the food service account. Questioned Costs: None. Condition: Monthly federal reimbursement receipts were not timely credited to the proper food service revenue accounts. Context: During our detailed testing of monthly federal reimbursement receipts, we noted five of the five monthly receipts tested were properly credited to the corresponding food service revenue accounts. However, the timing of the receipt postings to the general ledger ranged from two to five months after the receipt dates. Effect: School District’s cash and food service revenues were misstated for extended periods throughout the fiscal year, and errors or the misappropriation of funds could have occurred without timely detection. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some food service revenue postings to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel of the requirements for non-profit school food service accounts under Uniform Grant Guidance, and the School District should require payments to be timely receipted and credited to the proper food service accounts. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-005
Finding 2023-005: Child Nutrition Cluster Federal Reimbursement Receipting Procedures U.S. Department of Agriculture Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 10.553, 10.555, and 10.559 Award numbers: 221970, 231970, 220910, 221960, 231960, 220900 and 230900 Award year ends: June 30, 2023 and September 30, 2023 Specific Requirement: Special Tests and Provisions—Non-Profit School Food Service Accounts Criteria: 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i) requires a School District to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. A school food authority must operate its food services on a non-profit basis. All revenue generated by the school food service must be used to operate and improve its food services, and this revenue must be properly and timely credited to the food service account. Questioned Costs: None. Condition: Monthly federal reimbursement receipts were not timely credited to the proper food service revenue accounts. Context: During our detailed testing of monthly federal reimbursement receipts, we noted five of the five monthly receipts tested were properly credited to the corresponding food service revenue accounts. However, the timing of the receipt postings to the general ledger ranged from two to five months after the receipt dates. Effect: School District’s cash and food service revenues were misstated for extended periods throughout the fiscal year, and errors or the misappropriation of funds could have occurred without timely detection. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some food service revenue postings to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel of the requirements for non-profit school food service accounts under Uniform Grant Guidance, and the School District should require payments to be timely receipted and credited to the proper food service accounts. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-005
Finding 2023-005: Child Nutrition Cluster Federal Reimbursement Receipting Procedures U.S. Department of Agriculture Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 10.553, 10.555, and 10.559 Award numbers: 221970, 231970, 220910, 221960, 231960, 220900 and 230900 Award year ends: June 30, 2023 and September 30, 2023 Specific Requirement: Special Tests and Provisions—Non-Profit School Food Service Accounts Criteria: 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i) requires a School District to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. A school food authority must operate its food services on a non-profit basis. All revenue generated by the school food service must be used to operate and improve its food services, and this revenue must be properly and timely credited to the food service account. Questioned Costs: None. Condition: Monthly federal reimbursement receipts were not timely credited to the proper food service revenue accounts. Context: During our detailed testing of monthly federal reimbursement receipts, we noted five of the five monthly receipts tested were properly credited to the corresponding food service revenue accounts. However, the timing of the receipt postings to the general ledger ranged from two to five months after the receipt dates. Effect: School District’s cash and food service revenues were misstated for extended periods throughout the fiscal year, and errors or the misappropriation of funds could have occurred without timely detection. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some food service revenue postings to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel of the requirements for non-profit school food service accounts under Uniform Grant Guidance, and the School District should require payments to be timely receipted and credited to the proper food service accounts. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-005
Finding 2023-005: Child Nutrition Cluster Federal Reimbursement Receipting Procedures U.S. Department of Agriculture Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 10.553, 10.555, and 10.559 Award numbers: 221970, 231970, 220910, 221960, 231960, 220900 and 230900 Award year ends: June 30, 2023 and September 30, 2023 Specific Requirement: Special Tests and Provisions—Non-Profit School Food Service Accounts Criteria: 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i) requires a School District to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. A school food authority must operate its food services on a non-profit basis. All revenue generated by the school food service must be used to operate and improve its food services, and this revenue must be properly and timely credited to the food service account. Questioned Costs: None. Condition: Monthly federal reimbursement receipts were not timely credited to the proper food service revenue accounts. Context: During our detailed testing of monthly federal reimbursement receipts, we noted five of the five monthly receipts tested were properly credited to the corresponding food service revenue accounts. However, the timing of the receipt postings to the general ledger ranged from two to five months after the receipt dates. Effect: School District’s cash and food service revenues were misstated for extended periods throughout the fiscal year, and errors or the misappropriation of funds could have occurred without timely detection. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some food service revenue postings to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel of the requirements for non-profit school food service accounts under Uniform Grant Guidance, and the School District should require payments to be timely receipted and credited to the proper food service accounts. Views of Responsible Officials: The School District agrees with this finding.
Finding 2023-005
Finding 2023-005: Child Nutrition Cluster Federal Reimbursement Receipting Procedures U.S. Department of Agriculture Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 10.553, 10.555, and 10.559 Award numbers: 221970, 231970, 220910, 221960, 231960, 220900 and 230900 Award year ends: June 30, 2023 and September 30, 2023 Specific Requirement: Special Tests and Provisions—Non-Profit School Food Service Accounts Criteria: 7 CFR sections 210.14(a), 210.14(c), 210.19(a)(2), 215.7(d)(1), 220.2, and 220.7(e)(1)(i) requires a School District to account for all revenues and expenditures of its non-profit school food service in accordance with state and federal requirements. A school food authority must operate its food services on a non-profit basis. All revenue generated by the school food service must be used to operate and improve its food services, and this revenue must be properly and timely credited to the food service account. Questioned Costs: None. Condition: Monthly federal reimbursement receipts were not timely credited to the proper food service revenue accounts. Context: During our detailed testing of monthly federal reimbursement receipts, we noted five of the five monthly receipts tested were properly credited to the corresponding food service revenue accounts. However, the timing of the receipt postings to the general ledger ranged from two to five months after the receipt dates. Effect: School District’s cash and food service revenues were misstated for extended periods throughout the fiscal year, and errors or the misappropriation of funds could have occurred without timely detection. Cause: The School District experienced personnel changes and shortages within the accounting function during the year, including a two-month gap between business managers, and an extended medical leave, which caused some food service revenue postings to not be completed timely as there was no available replacement during this time. Repeat Finding: This is not a repeat finding. Recommendation: The School District should provide training to accounting department personnel of the requirements for non-profit school food service accounts under Uniform Grant Guidance, and the School District should require payments to be timely receipted and credited to the proper food service accounts. Views of Responsible Officials: The School District agrees with this finding.