Finding Text
2022-001: Excess Fund Balance Type: Compliance Assistance Listing Number, Federal Agency, Program Name, Program Title, Pass-Through Grantor, and Pass-Through Name and Grant Number: U.S. Department of Agriculture, Passed through the Michigan Department of Education, Child Nutrition Cluster, 10.553/10.555/10.559 Criteria: 7 CFR 210.19 limits net cash resources to three months? average expenditures Condition: As of June 30, 2022, the District?s fund balance exceeded this limit. Context: The net cash resources calculation resulted in a $225,384 excess fund balance at June 30, 2022. Cause: During fiscal 2022, the District received more federal dollars than anticipated. Effect: The program is not in compliance with federal regulations. Recommendation: The District should adopt a formal spend-down plan to reduce the Food Service Fund fund balance to allowable limits. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.