Finding 1164615 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-12
Audit: 374228
Organization: Kelloggsville Public Schools (MI)
Auditor: HUNGERFORD

AI Summary

  • Answer: There is a major issue with our internal controls related to compliance, leading to noncompliance with laws and regulations.
  • Trend: This deficiency indicates a pattern of oversight that could expose us to legal risks and financial penalties.
  • List: We need to review and strengthen our compliance processes, provide additional training, and conduct regular audits to ensure adherence to laws and regulations.

Finding Text

Significant deficiency in internal control over compliance, and noncompliance with laws and regulations.

Corrective Action Plan

Finding Number Federal Programs Audit: 2025-001; Responsible Person: Kristen Curtis, Food Service Director. Holly Kleyn, Assitant Superintendent of Finance; Management Views: Management agrees with the finding and is in the proess of implementing the recommendation.; Corrective Action: The District has implemented internal controls to ensure the accuracy and integrity of reimbursement claims prior to submission to the State agency. As part of this process, a reimbursement claim report is generated and reviewed for potential anomalies, including but not limited to the number of students served and the number of operating days reported. These data points are then reconciled against site-level production records to confirm alignment and accuracy. In the event discrepancies are identified, the District requires the site lead to provide clarification and supporting documentation. Necessary corrections are made prior to laim submission. Furthermore, corrective action includes retraining of the site lead to mitigate recurrence of similar errors and to reinforce compliance with federal and state program requirements. These procedures were in place before fiscal year-end to maintain the accuracy of reimursement claims and to ensure compliance with all applicable program regulations.; Anticipated Completion Date: Procedures were in place before fiscal year-end.

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1164612 2025-001
    Material Weakness Repeat
  • 1164613 2025-001
    Material Weakness Repeat
  • 1164614 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $1.37M
10.553 SCHOOL BREAKFAST PROGRAM $475,896
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $93,160
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $80,145
84.425 EDUCATION STABILIZATION FUND $57,467
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $49,519
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $37,170
93.778 MEDICAL ASSISTANCE PROGRAM $28,711
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $23,786
45.025 PROMOTION OF THE ARTS PARTNERSHIP AGREEMENTS $9,126
84.027 SPECIAL EDUCATION GRANTS TO STATES $7,200
10.558 CHILD AND ADULT CARE FOOD PROGRAM $5,069