Finding Text
Finding 2023-004 – SPECIAL TESTS AND PROVISIONS (repeat comment)
Type: Significant Deficiency in Internal Control / Noncompliance
Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559)
Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months’ operating expenses by approximately $157,881.
Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b).
Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated.
Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval.
Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience.
Management’s Resp: We are in agreement with this finding.