Finding Text
Repeat Finding ? Yes (2021-003) Program Income Finding Type ? Material noncompliance with laws and regulations. Criteria ? In accordance with 7 CFR 210.19(a)(2), the Charlton Heston Academy?s Nonprofit School Food Service Account?s (NSFSA) fund balance, or net cash resources, must not exceed three months? average expenditures. Condition ? The Charlton Heston Academy?s NSFSA?s fund balance exceeded the allowable three months? average expenditures balance at June 30, 2022. The Charlton Heston Academy had approximately 4.61 months of expenditures as fund balance at June 30, 2022. The Charlton Heston Academy will be required to submit a Plan of Action and obtain Michigan Department of Education?s (MDE) prior approval to improve the food quality or take other action designed to improve the program in accordance with 7 CFR 210.19(a)(2). Questioned Costs ? None Cause ? Unknown Effect ? The Charlton Heston Academy is not in compliance with U.S. Department of Agriculture regulations. Recommendation ? The Academy should submit a Plan of Action and obtain Michigan Department of Education?s (MDE) prior approval to improve the food quality or take other action designed to improve the program in accordance with 7 CFR 210.19(a)(2). Auditee Response ? The Academy is aware of the finding and is currently working towards its spend down plan with the Michigan Department of Education (MDE). The Academy plans to use excess funds for purchasing kitchen equipment and other related food service items. The Academy will continue to monitor the fund balance and implement strategies to prevent noncompliance in the future.