Finding 38761 (2022-001)

- Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-10-30
Audit: 37861
Organization: Walkerville Public Schools (MI)

AI Summary

  • Core Issue: The food service fund's balance exceeded the legal limit set by USDA regulations.
  • Impacted Requirements: Noncompliance with 7 CFR Part 210, which mandates limiting cash resources to 3 months of average expenditures.
  • Recommended Follow-Up: The District should execute its corrective action plan to bring the fund balance within the allowable limit.

Finding Text

Condition and Criteria: The U.S. Department of Agriculture regulation located at 7 CFR Part 210, Subpart C, Section 210.14(b) states that the food service fund is to limit its net cash resources to an amount that does not exceed 3 months average expenditures. The fund balance in the District's food service fund exceeded the allowable amount at June 30, 2022. Cause: While the appropriate District employees were aware of the applicable compliance requirements, the District was unable to spend enough funds during the year to reduce the fund balance of the food service fund. Effect: Noncompliance with the requirements of the Code of Federal Regulations. Recommendation: The District should develop and implement a plan to reduce its net cash resources to the allowable limit. Management Response: The District has developed a corrective action plan that provides for reducing net cash resources to the allowable limit.

Corrective Action Plan

CORRECTIVE ACTION PLAN Walkerville Public Schools is in agreement with the finding identified and respectfully submits the following Corrective Action Plan for the year ended June 30, 2022. 2022-001 Excess Food Service Fund Balance The food service fund balance ended June 30, 2022 with an excess allowable fund balance. This occurred due to delays in the global supply chain which did not allow us to complete our cafeteria and kitchen remodels as planned. The district's responsible parties include the Food Service Supervisor (Sheri Boes), the Superintendent (Dr. Thomas Langdon) and the Business Manager (Sandra Oomen). All of these individuals have been made aware of the issue and discussed the possibilities to reduce the fund balance for the 2022-2023 school year. The focus of the District to reduce the fund balance will be to: ? Complete the remodel of the kitchen and cafeteria area ? Continue to purchase supplies, equipment, and services that add value to our food service program Implementation and Monitoring: The district will be implementing the purchase of these items throughout the 2022-2023 school year, with all purchases being received no later than June 30, 2023. The Business Manager will monitor the process to determine if additional fund balance will need to be spent throughout the fiscal year to comply with current regulations. The Business Manager will continue dialogue with the Food Service Supervisor and Superintendent throughout the year to keep all parties current on the fund balance status and will update the plan on spending fund balance if needed. If the Michigan Department of Education has any questions regarding this plan, please contact Sandra Oomen at 231-873-4850 ext. 3323 or soomen@walkerville.kl2.mi.us.

Categories

Cash Management School Nutrition Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $435,253
84.011 Migrant Education_state Grant Program $26,233
84.367 Improving Teacher Quality State Grants $17,030
10.555 National School Lunch Program $10,421
84.425 Education Stabilization Fund $7,826
84.358 Rural Education $5,954
10.559 Summer Food Service Program for Children $4,891
10.558 Child and Adult Care Food Program $3,831
84.365 English Language Acquisition State Grants $2,793
10.649 Pandemic Ebt Administrative Costs $614
84.424 Student Support and Academic Enrichment Program $203
84.010 Title I Grants to Local Educational Agencies $7