Finding 1164606 (2025-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
$1
Year
2025
Accepted
2025-12-12
Audit: 374212
Auditor: UHY LLP

AI Summary

  • Core Issue: The Academy claimed reimbursement for more meals than were actually served, leading to questioned costs of $31.
  • Impacted Requirements: Monthly claims for meal reimbursements must be submitted accurately within 60 days, with proper internal controls in place.
  • Recommended Follow-Up: Implement a review process for reimbursement requests to ensure accuracy and proper documentation of approvals.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 10.553/10.582/10.555/10.559, Child Nutrition Cluster Federal Award Identification Number and Year: 241970/ 251970/ 241960/ 241980/ 251980/ 251980 Pass-through Entity – Michigan Department of Education Finding Type – Material weakness in internal control over compliance Repeat Finding - No Criteria – The Academy 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. Upon preparation of meal reimbursement claims, the Academy is required to have controls in place to ensure the accuracy of the request for reimbursement. Condition – The Academy claimed reimbursement in excess of meals served for one of the four months tested. Identification of How Questioned Costs Were Computed – Questioned costs represent meals claimed in excess of those served. Questioned Costs – $31 Cause – The Academy did not properly review reports to ensure the proper reimbursement was claimed. Effect – The Academy received funds in excess of the amounts that should have been received. Recommendation – The Academy should implement a control where the monthly reimbursement request is reviewed, and approval is documented to ensure the submission is mechanically accurate and that it agrees with the Academy’s summary of daily count spreadsheets. View of Responsible Officials and Corrective Action Plan – Management agrees with the finding. See corrective action plan

Corrective Action Plan

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.

Categories

Questioned Costs Subrecipient Monitoring Cash Management Material Weakness School Nutrition Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1164607 2025-007
    Material Weakness Repeat
  • 1164608 2025-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $818,405
84.027 SPECIAL EDUCATION GRANTS TO STATES $278,981
10.553 SCHOOL BREAKFAST PROGRAM $146,871
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $104,603
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $69,021
10.555 NATIONAL SCHOOL LUNCH PROGRAM $49,942
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $8,566
84.425 EDUCATION STABILIZATION FUND $7,749