Finding Text
2022-002 (Repeat Finding 2021-001) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Numbers 10.553, 10.555, 10.556, 10.559, 10.582. Criteria Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months average expenditures. Condition The School Districts net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement for School Districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $379,306. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $379,306. Recommendation We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan. See corrective action plan for more detail.