Finding 30747 (2022-002)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2022-10-25
Audit: 25883
Organization: West Branch-Rose City Schools (MI)

AI Summary

  • Core Issue: The School District failed to budget correctly for food service expenditures, leading to budget violations.
  • Impacted Requirements: School Districts must have controls to align anticipated revenues and expenditures with historical and projected data.
  • Recommended Follow-Up: The School District should regularly monitor financial activity and adjust the budget as necessary to comply with Michigan's standards.

Finding Text

2022-002 Program - Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Criteria - School Districts should have controls in place to properly reflect anticipated revenues and expenditures based on historical and projected information, in the budget. Condition - The School District did not properly budget for the food service expenditures, resulting in budget violations. Questioned costs - None. Context - The budget is used to monitor financial performance and reasonableness of financial reports. Effect - Unfavorable budget variances exist for food service expenditures. Cause - The revenues and expenditures were not being monitored in comparison with budget to actual activity. Recommendation - The School District should closely monitor the activity and amend if needed as required to be in accordance with the budgetary standards established by the State of Michigan.

Corrective Action Plan

The Superintendent, Director of Finance and Food Service Director will meet regularly to review food service revenue and expenditures during the course of the year. Adjustments will be made as deemed necessary.

Categories

School Nutrition Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $888,309
10.553 School Breakfast Program $556,547
84.027 Special Education_grants to States $416,132
10.559 Summer Food Service Program for Children $123,371
10.555 National School Lunch Program $95,461
84.424 Student Support and Academic Enrichment Program $30,751
84.367 Improving Teacher Quality State Grants $23,586
84.358 Rural Education $21,500
10.665 Schools and Roads - Grants to States $19,068
10.582 Fresh Fruit and Vegetable Program $8,056
10.558 Child and Adult Care Food Program $6,144
10.649 Pandemic Ebt Administrative Costs $3,063
84.010 Title I Grants to Local Educational Agencies $188