Corrective Action Plans

2025-004 – Child Nutrition Cluster - Eligibility - The District is aware of the student’s receiving benefits that are not eligible for benefits and will implements new procedures and a plan to update eligibility. Responsible Official – Austin Moore, Business Manager Anticipated Completion Date – The District will correct this in the subsequent fiscal year.

The cafeteria manager will reconcile meals served monthly to verify that the numbers match and are verified to actual meals served starting in the 2025-26 School Year.

2025-002 – Child Nutrition Cluster – Eligibility – The District is aware of the missing eligibility documents for the Child Nutrition program and will implement new procedures and a plan to reduce the missing documentation. Responsible Officials – Heidi Engel, Enrollment & Transportation Coordinator, and Jessica Christensen, District Food Service Manager Anticipated Completion Date – The District will correct this in the subsequent fiscal year.

Finding 2025-005 Lack of Internal Controls over Activities Allowed or Unallowed, Allowable Costs/Cost Principles Name of Contact Person: Jennifer Phillip, Kary Delsignore Corrective Action Plan: Invoices will be approved for payment by the person who receives the product and then approved also by the food service coordinator. No unallowable costs will be paid for with food service revenue. Proposed Completion Date: Fiscal Year 2026.

Finding 2025-004 Lack of Internal Controls over Reporting Name of Contact Person: Jennifer Phillip, Kary Delsignore Corrective Action Plan: Records will be reviewed monthly by two individuals to ensure they are complete. Back up documentation shall be kept in a secure location where at least two other budget supervisors are aware and have access to same. Proposed Completion Date: Fiscal Year 2026

The audit finding indicated that direct certifications were not completed as required attributed to turnover in the Food Service Director position. There certifications may or may not have been done, we were not able to provide documentation to prove this. The new Food Service Director (Billie Jo Davis) is in place and has a strong understanding of the NSLP program and its requirements. Direct Certifications have been scheduled and placed on calendars for her and the finance team to ensure the files are completed and the documentation is properly stored moving forward. Submitting a direct certification file monthly will allow us to have up to date information on our students.

Condition: The School District did not have a sufficiently detailed control in place to ensure that the number of meals served and claimed for reimbursement in the Michigan Nutrition Data (MiND) system was supported by School District records of actual meals served. As a result, the School District was unable to provide support for the complete number of meals requested for reimbursement, within our audit sample. Planned Corrective Action: The School District will implement a secondary review of the monthly summary sheet used for MIND system claim submission to ensure it fully reconciles with the supporting daily tally sheets. The reviewer will initial and date the summary sheet upon completion of the review. In addition, the newly appointed Food Services Director will establish and maintain an organized filing system (physical and/or electronic) containing all claim-supporting documentation, ensuring records are complete and readily accessible for monitoring or audit purposes. These procedures will be in place effective December 1, 2025 and will be monitored for sustained compliance. Contact person responsible for corrective action: David Bergeron, Assistant Superintendent Anticipated Completion Date: December 1, 2025

The District will monitor vendors to ensure they are able to accept federal monies. The District will also review all invoices relating to bids to verify correct charges. Kayla Quick, Accounts Payable Clerk. 6/30/2026

Action taken: A new secretary (A. Chittenden) was hired in February and wasn't aware this needed to take place. It was assumed that Capital Region BOCES (the district contracts food services management through them) was performing that on the district's behalf. Ms. Chittenden has been made aware that this is part of her job duties. Anticipated completion date: immediately

Carman-Ainsworth Community Schools submits the following corrective action plan concerning finding 2025-001 on the schedule of findings and questioned costs: 2025-001– Significant Deficiency – Noncompliance – Allowable Costs / Payroll Plan – During the audit, we were made aware of 3 instances in which employees were not paid according to their actual hours worked. Due to this finding, the School District business office will review all payroll registers for each pay and match hourly employees timesheets to all registers to ensure actual hours worked are used in calculation. Timetable for Completion – Implementation for this will begin immediately upon issuance of the audit reports. Responsible Officials – Assistant Superintendent

Condition: The School District's internal controls did not effectively identify all of the required components necessary in formal solicitation documents for food service/cost reimbursable contracts and when using a third party entity (e.g., consortium) and did not utilize competitive procurement methods. Planned Corrective Action: The School District is revising its food service procurement documents to explicitly include all required contract provisions under the Uniform Guidance. The School District is also incorporating recent interpretations and guidance from the U.S. Department of Agriculture (USDA), as communicated through MDE, particularly regarding cooperative purchasing and pricing structures for federal compliance. These actions are intended to strengthen the procurement controls to ensure all future food service contracts meet the compliance requirements of the Uniform Guidance and USDA regulations. Contact person responsible for corrective action: Danielle Jacobs, Director of Business Services Anticipated Completion Date: 8/15/2025

Federal Award - Finding Number: 2025-002 Responsible Person: Director of Finance Condition: The district charged to the food service fund the cost of an asset that was not included on the approved equipment list from Michigan Department of Education and did not obtain approval from Michigan Department of Education prior to purchase. Corrective Action Plan: All food service fund asset purchases made going forward will be compared to the approved equipment list or approved by the Michigan Department of Education prior to purchase. Anticipated Correction Date: Immediate and Ongoing

Finding 2025-002 Approval of Free and Reduced Meal Applications 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding The District will adopt policies and procedures to perform thorough reviews of the applications. 3. Official Responsible Mr. Kurt Stumpf, Superintendent, is the official responsible for ensuring corrective action. 4. Planned Completion Date June 30, 2026. 5. Plan to Monitor Completion The Board of Education will be monitoring this Corrective Action Plan.

Finding 2025-001 School Nutrition Program Meal Claims 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding The District will evaluate current procedures for accurately monitoring, recording, and reporting the number and type of meals served. 3. Official Responsible Mr. Kurt Stumpf, Superintendent, is the official responsible for ensuring corrective action. 4. Planned Completion Date June 30, 2026. 5. Plan to Monitor Completion The Board of Education will be monitoring this Corrective Action Plan.

Condition: The Academy does not currently have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the Academy being reimbursed an incorrect amount by the Michigan Department of Education. Planned Corrective Action: The Academy will implement proper procedures and controls to ensure meal counts are reviewed and agree to underlying records of meals served prior to submitting meal claims. Contact person responsible for corrective action: Molly Brown Anticipated Completion Date: 12/01/2025

Condition: The Academy does not currently have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the Academy being reimbursed an incorrect amount by the Michigan Department of Education. Planned Corrective Action: The Academy will implement proper procedures and controls to ensure meal counts are reviewed and agree to underlying records of meals served prior to submitting meal claims. Contact person responsible for corrective action: Molly Brown Anticipated Completion Date: 12/01/2025

Condition: The Academy does not currently have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the Academy being reimbursed an incorrect amount by the Michigan Department of Education. Planned Corrective Action: The Academy will implement proper procedures and controls to ensure meal counts are reviewed and agree to underlying records of meals served prior to submitting meal claims. Contact person responsible for corrective action: Molly Brown Anticipated Completion Date: 12/01/2025

Condition: The Academy does not currently have a control in place where a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in incorrect reporting of the number of free and reduced priced meals, which could result in the Academy being reimbursed an incorrect amount by the Michigan Department of Education. Planned Corrective Action: The Academy will implement proper procedures and controls to ensure meal counts are reviewed and agree to underlying records of meals served prior to submitting meal claims. Contact person responsible for corrective action: Molly Brown Anticipated Completion Date: 12/01/2025

Criteria: According to 2CFR 200.431(c) the recipient or subrecipient must allocate fringe benefits to Federal awards and all other activities in a manner consistent with the pattern of benefits attributable to the individuals or group(s) of employees whose salaries and wages are chargeable to such Federal awards and other activities, and charged as direct or indirect costs following the recipient's or subrecipient's accounting practices. Condition: The School over-allocated health insurance benefits to the Child Nutrition Cluster.Cause: The School was using an outdated allocation formula that did not reflect changes to personnel in the program. Effect: The School over-allocated health insurance benefits to the Child Nutrition Cluster. Recommendation: We recommend that the School review fringe benefit allocations at the start of each school year, and then at least quarterly throughout the year to monitor for personnel changes that may impact allocations so that allocations may be adjusted timely. Action: As of the date of this exit conference, we will adopt the recommendation. Health benefits will no longer be allocated to the Child Nutrition Cluster. All other fringe benefit costs will be directly allocated.

The Academy has already resolved this process, since we did get the current Food Service contract for the 25-26 school year approved by the Board in August 2025 and will continue to do so every year going forward.

The Academy has now put a control in place in which the Business Manager at each district reviews the monthly reimbursement request to ensure it agrees to the daily counts' spreadsheet.

The Academy has put in place a review process within the Food Services Team to ensure future deadlines are met.

The Academy has already resolved this process, since we did get the current Food Service contract for the 25-26 school year approved by the Board in August 2025 and will continue to do so every year going forward.

The Academy has now put a control in place in which the Business Manager at each district reviews the monthly reimbursement request to ensure it agrees to the daily counts' spreadsheet.

The Academy has already resolved this process, since we did get the current Food Service contract for the 25-26 school year approved by the Board in August 2025 and will continue to do so every year going forward.