Corrective Action Plans

A plan is in place to renovate the middle school kitchen as soon as possible.

Contact Person - Thomas A. Jerome, Superintendent. Corrective Action Plan - The District will review policies and procedures for submitting meal counts for reimbursement. Completion Date - September 6, 2022.

Finding 2022-002 Document Retention (Significant Deficiency) Federal Program: Child Nutrition Cluster Finding: Per 7 CFR 200.334, ?Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.? Management Corrective Action: While the school?s annual total meals served for the 2021-22 audit year were more than the meals claimed for reimbursement, the school was unable to reconcile all of the individual months. The school has since implemented and automated system to record lunches served. This point-of-sale system will eliminate the ongoing monthly accounting required to support monthly claims assuring the numbers served reconciles with the numbers claimed. Chris Ashmore has already implemented this system and tested the subsequent year-to-date audit period to assure this corrective action has, in fact, eliminated the problem.

Finding 2022-001 Cash Management (Material Weakness) Federal Program: Child Nutrition Cluster Finding: Per 7 CFR 210.14(b) and 7 CFR 220.7(e)(1)(iv), the ?school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service or such other amount as may be approved by the State agency Management Corrective Action: Previous audit year expenses were classified as ?General? funds when they should have classified as ?Food Service?. This, in aggregate, has led to an excess fund balance. Management, specifically Rod Iberg and Linda Heidrich, will work with the state on how to transfer the large arrear fund balances between accounts. Management will also endeavor to assure that all ongoing expenses are allocated to the correct fund.

2022-002 Child Nutrition Cluster ? Assistance Listing No. 10.553/10.555/10.559Recommendation: Adhere to internal control procedures over the review of meal counts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Summer Feeding Program Claims will be reviewed and verified before entry with same form and procedure that is currently used for National School Lunch Program claims. Name(s) of the contact person(s) responsible for corrective action: Nancy Millspaugh Planned completion date for corrective action plan: June 30, 2023.

Condition: Monthly Claim for Reimbursement included second meal claims in excess of two percent of the number of first meals served to children for each meal type. Plan: Implement additional procedures to ensure the accuracy of meal counts prior to the submission of the monthly Claim for Reimbursement such as but not limited to training and conferences. Additionally, the District should contact the Illinois State Board of Education for further recommendation on this finding. Anticipated Date of Completion: 6/30/2023 Name of Contact Person: Thomas Akers, Superintendent Management's response: There is no disagreement with this finding and procedures will be implemented. The District will contact the Illinois State Board of Education for further recommendation.

2022-004 UNTIMELY FILING OF THE DATA COLLECTION FORM ? OTHER NONCOMPLIANCE Condition: The Kindred Public School District did not submit its Data Collection Form to the Federal Audit Clearinghouse within nine months of its year-end. Corrective Action Plan: Agree?We had many things going on this year with Superintendent hiring and construction. Anticipated Completion Date: Was done as soon as audit was complete.

See corrective action plan.

October 26, 2022 Section III - Federal Award Finding 2022-001: Excess Fund Balance Marysville Public Schools? Proposed Corrective Action: The District is in the process of preparing a spend-down plan to submit to the Michigan Department of Education (MDE). Upon approval by MDE, the District will spend School Lunch excess cash reserves to reduce fund balance to comply with 7 CFR 210.19. Sincerely, Jennifer McKay Director of Business & Finance

Finding 2022-002 Compliance of Special Tests and Provisions ? Non-Profit School Food Service Accounts View of responsible official: The School agrees to solely use the food service bank account for all revenues and expenses related to the food service program. The School will begin the process of transitioning bank information to respective vendors and governmental agencies to ensure the monies received for the food service program are deposited into the account and expenses for the food service program are paid directly out of this account. Contact person: Troy Jones, Finance Director Expected implementation date: February 2023

Finding 2022-003 Internal Control over Compliance Requirements View of responsible official: The School concurs with the auditors? recommendation. The School will ensure all data used in the claims and review process is maintained for a minimum of three years. Contact person: Troy Jones, Finance Director Expected implementation date: February 2023

Finding 2022-001 Internal Control Over Compliance of Special Tests and Provisions ? Non-Profit School Food Service Accounts View of responsible official: The School agrees to solely use the food service bank account for all revenues and expenses related to the food service program. The School will begin the process of transitioning bank information to respective vendors and governmental agencies to ensure the monies received for the food service program are deposited into the account and expenses for the food service program are paid directly out of this account. Contact person: Troy Jones, Finance Director Expected implementation date: February 2023

As a result of COVID-19 and the unanticipated school closure the Food Service Fund had an increase in funding that was unexpected. As a correction action the Superintendent, Business Manager and Food Service Director will meet on a quarterly basis to review the Food Service budget and monitor the spend down plan.

Purchase needed equipment

Certain matters were brought to our attention as a result of the audit process. These are described more fully in the Schedule of Findings and Questioned Costs. We evaluated the matters noted below, and have described our planned actions as a result. 2022-001 - Program Income - Food Service Fund Balance Management Assessment - We concur with the audit assessment regarding this matter. Planned Corrective Action - The District is aware of the USDA fund balance requirements. The District operated under the Seamless Summer Option during fiscal year 2021-22 which allowed all of our students to eat both breakfast and lunch for free. The District received a large amount of federal funding which in turn resulted in more fund balance than allowed by USDA at 6/30/2022 ($5,466). The Food Service Director and Business Manager are in the process of creating a spenddown plan to be submitted to MDE which will move fund balance within an allowable range. Responsible Party - Business Manager Date of Planned Corrective Action - June 2023

Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with requirements for time-and-effort documentation. Name, address, and telephone of District contact person: Benjamin Rarick, Associate Superintendent of Finance 12033 SE 256th Kent, WA 98031 Corrective action the auditee plans to take in response to the finding: The Grants Administrator, under the supervision of the Director of Budget, will do interim and year-end reviews to identify any instances of positions funded by multiple federal funding sources for the purpose of assessing applicability of multi-cost objective T&E requirements and following through as appropriate. The Grants Administrator, under the supervision of the Director of Budget, and in collaboration with the program administrator, will initiate time & effort documentation in every case where there is debatable fact pattern, with the intent of adopting an “abundance of caution” approach to T&E, and will additionally seek written clarification from OSPI and/or the ESD in instances where T&E requirements are not dispositive from the relevant federal compliance supplements and guidance documents. Anticipated date to complete the corrective action: October, 2024

District will implement internal controls and procedures to ensure all expenditures are properly authorized and only paid after sufficient documentation has been received to ensure all the goods and services have been received by the school district.

Response: The District’s prior auditor declined to provide services for 20-21 and 21-22 due to a scheduling overload. Finding a different auditor to provide services is difficult. The previous auditor was located closer to the District. The newly contracted auditors are located more than 560 miles across the state. That coupled with a 100% change in Business Office staff in an 8-month period created delays in submitting materials requested by the auditor and therefore delayed the starting and completion of the audit. A three-year contract with the current auditors has been negotiated and the audit for FY 22-23 started immediately after the completion of this audit.

Finding 2022-003 When orders are generated in Ceres a ship date is established. Occasionally, due to weather, agency staffing, or other issues, the anticipated distribution date will have to change. There are also situations where disruptions in the computer system may require a different date in the system when is available. GHFB takes several measures in making sure the records are secured and stored in an area known by several employees so that once a record is completed it can be filed and inventory integrity is maintained. Person responsible: Norman Stafford...10/1/23 completion date

Finding 2022-002 Golden Harvest Food Bank (GHFB) does not generate the Bill of Lading (BOL) for product being delivered. The USDA instructs vendors to include several numbers to be annotated on the BOL for reporting reasons. These numbers start with 1000, 2000, 3000, 4000, and 5000. There are occasions where some of these numbers are not included on the accompanying BOL when delivered. GHFB personnel look for any of the above numbers to insure items are TEFAP. As required, GHFB is required to report the receipt of the TEFAP items to the appropriate state entity that manages the TEFAP program. This report requests the 4000 and the 5000 numbers. If either one of those numbers is not on the BOL, the omission is annotated in this report. In addition to these numbers GHFB also maintains a listing of TEFAP products due in the first 15 days of the month and TEFAP products due in the second half of each month. GHFB believes all BOL have been signed by our personnel. Going forward all BOLs will be signed by both the individual who receives the product as well as the warehouse or inventory manager. Person responsible: Norman Stafford...10/1/23 completion date

Condition and Cause: As part of our federal compliance testing we reviewed supporting documentation used to submit claims for lunch and breakfast programs. Our review noted one instance where the breakfast meals were submitted as lunch meals. Questioned Costs: $7,864 Criteria: Districts must submit monthly claims for reimbursement for meals served to eligible students within 60 days following the last day of the month covered by the claim. Each month’s claim for reimbursement and all data used in the claims review process must be maintained on file. Accurate records must be maintained justifying all meals claimed and documenting that all Program funds were spent only on allowable Child Nutrition Program costs. Effect: If incorrect amounts are reported, the District could either receive disallowed aid, or be missing out on additional aid. Auditor’s Recommendation: We recommend the District review of current procedures for compiling and reporting the information submitted in order to verify accurate claims are submitted to DPI. Grantee Response: The District is working with DPI to correct the claims and will implement procedures to ensure that claims are accurate. Contact Person: Jessica Lien Anticipated Completion: Ongoing

Condition: Suspension and debarment compliance is not verified for all covered transactions. Corrective Action Planned: The School Comptroller will ensure that all vendors are checked using SAM for suspension and debarment for all covered transactions in compliance with federal laws. The School Comptroller will print out the support and include with each grant. Anticipated Completion Date: Completed Contact: Robert Dickinson, City Auditor

FA 2022-002 Strengthen Controls over Procurement and Suspension and Debarment Compliance Requirement: Procurement and Suspension and Debarment Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: 10.553 - School Breakfast Program 10.555 - National School Lunch Program Federal Award Number: 225GA324N1199; 225GA324N1199 Questioned Costs: $474 Description: A review of expenditures charged to the Child Nutrition Cluster revealed that the School District's internal control procedures were not operating appropriately to ensure that the School District's procurement procedures were followed. Corrective Action Plans: The School District has returned to following its approved procurement procedures. Estimated Completion Date: July 1, 2023 Contact Person: Chris Johnson, CGFM, Director of Financial Services Telephone: 478-994-2031 Email: chris.johnson@mcschools.org

FA 2022-001 Strengthen Controls over Special Reporting Compliance Requirement: Reporting Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: 10.553 - School Breakfast Program 10.555 - National School Lunch Program Federal Award Number: 225GA324N1199; 225GA324N1199 Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over the monthly Claims for Reimbursement process. Corrective Action Plans: The School District has returned to collection Free and Reduce applications and recording the student meals accordingly. Estimated Completion Date: July 1, 2022 Contact Person: Chris Johnson, CGFM, Director of Financial Services Telephone: 478-994-2031 Email: chris.johnson@mcschools.org

Accounts payable testing and internal controls A. Name of contact person responsible for corrective action: Name: Dr. Roxanne Hall Title: Director of Finance B. Corrective action planned: The District will implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. That will also ensure proper safeguarding of assets and accurate accounting records. C. Anticipated completion date: June 30, 2024