Finding 1165628 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-19
Audit: 376300
Organization: Mesick Consolidated Schools (MI)
Auditor: UHY LLP

AI Summary

  • Core Issue: The School District submitted meal claims that did not match the supporting documentation, leading to an ineffective internal control system.
  • Impacted Requirements: Compliance with OMB guidelines for meal reimbursement requests based on total meals served was not met.
  • Recommended Follow-Up: Implement an additional review process for meal claims to ensure accuracy and alignment with documentation.

Finding Text

2025-001 Significant Deficiency in Internal Control (Reporting) Federal Program: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Education Pass-Through Entity: Michigan Department of Education Pass-Through Number: 241970, 251970, 241960, 251960, 240900, 250900 & Entitlement Commodities Federal Award Year: July 1, 2024 to September 30, 2025 Criteria: In accordance with OMB requirements, the District can only request funds for meal reimbursements based on total meals served, no more or no less. Condition: The School District had one month of meal claims under the summer food service program where the supporting documentation did not agree with the meal claim. Cause: The School District failed to have controls in place that would prevent, detect, or correct an incorrect monthly meal claim. Effect: The School District’s internal controls were found to be ineffective as they claimed less meals than they should have, resulting in less revenue for the District. Questioned Costs: No questioned costs as the District did not claim more meals than they were supposed to during the year. Perspective Information: The finding appears to be an isolated instance. No sampling was necessary to determine this finding. Identification of Repeat Findings: None Recommendation: The School District should have an additional level of review as it relates to submitting meal claims to ensure the correct amount is submitted based on the supporting documentation. View of Responsible Officials: Per discussion with Jack Ledford, Food Service Director, and Katrina Bontekoe, Business Manager on August 8, 2025, the District recognized this one time issue and is implementing additional procedures to ensure that funds requested for meal reimbursements agree to total meals served.

Corrective Action Plan

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim had an incorrect subtotal of meals disbursed which resulted in the meal claim being submitted for less than it should have been. There is a chance that the claim was done for the correct amount, but the supporting documentation shows that the District claimed less than they were allowed to. The District is going to ensure that all totals are subtotaled correctly in the future and double checked before the claim request is made. The persons responsible for the corrective action are Jack Ledford, the Food Service Director and Katrina Bontekoe, the Business Manager. The anticipated completion date of the corrective action plan is immediate. The plan for monitoring adherence is the Food Service Director will ensure that funds requested for meal reimbursements agree to total meals served.

Categories

Subrecipient Monitoring Cash Management Reporting School Nutrition Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1165625 2025-001
    Material Weakness Repeat
  • 1165626 2025-001
    Material Weakness Repeat
  • 1165627 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $311,367
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $251,454
10.553 SCHOOL BREAKFAST PROGRAM $147,707
84.367 IMPROVING TEACHER QUALITY STATE GRANTS $35,598
10.558 CHILD AND ADULT CARE FOOD PROGRAM $14,091
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $14,038
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $11,191
10.579 CHILD NUTRITION DISCRETIONARY GRANTS LIMITED AVAILABILITY $10,294
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $10,195
84.425 EDUCATION STABILIZATION FUND $9,779
93.778 MEDICAL ASSISTANCE PROGRAM $8,591
84.358 RURAL EDUCATION $4,123