Finding 43440 (2022-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-08
Audit: 39615
Organization: Blissfield Community Schools (MI)
Auditor: Maner Costerisan

AI Summary

  • Core Issue: The District has an excess fund balance in the nonprofit food service fund, exceeding the allowable limit set by the U.S. Department of Agriculture.
  • Impacted Requirements: Compliance with federal regulations (7 CFR Part 210.19(a)(2)) that restrict the fund balance to no more than three months of operating expenses.
  • Recommended Follow-Up: Develop and submit a spending plan to the Michigan Department of Education to reduce the fund balance and improve food service quality.

Finding Text

2022-001 EXCESS FUND BALANCE - NONPROFIT FOOD SERVICE FUND Immaterial Non-Compliance Assistance Listing# 10.553, 10.555, and 10.559, from U.S. Department of Agriculture, Program award numbers 211861, 220916, 211971, and 210904 passed through Michigan Department of Education, Special Tests and Provisions. Condition: During the course of our audit we noted that the District currently has more than the allowable fund balance in the nonprofit food service fund. As a result, the District will be required to develop a spending plan for reducing the balance to an acceptable level during the current school year. The plan must be submitted to the Michigan Department of Education for prior approval. Excess funds cannot be transferred to the General Fund. Questioned Costs: None Criteria: The U.S. Department of Agriculture requires that the ending fund balance of the nonprofit food service fund does not exceed three months operating expenses (7 CFR Part 210.19(a)(2)). Cause: Unknown Effect: The District is not compliance with U.S. Department of Agriculture regulations. Recommendation: We recommend that the District continue a spending plan to improve the food quality or take other action to improve non-profit food service per applicable federal regulations District Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.

Corrective Action Plan

Blissfield Community Schools respectfully submits the following corrective action plan for the year ended June 30,2022. Auditor: Maner Costerisan 2425 E. Grand River Avenue, Suite 1 Lansing, MI 48912 Audit Period: Year ended June 30,2022 Finding - Financial Statement Audit: None noted Finding ? Federal Award: 2022-001 EXCESS FUND BALANCE - NONPROFIT FOOD SERVICE FUND Recommendation: The District should continue a spending plan to improve the food quality or take other action to improve non-profit food service per applicable federal regulations. Action to be taken: The business office will continue to submit spending down plan to MDE for board approval. Anticipated completion date: June 2023 Responsible party: Chief Financial Officer, Judy Pfund and Food Service Director, Amy Gschwind District Response: A majority of the purchases identified in our spend down plan as a result of our June 30, 2021 financial position were not received until July, so our excess fund balance reflected in our June 30, 2022 reports includes last year?s excess also. Once we have computed the excess, we will look at any additional equipment needs as well as increasing food quality. Respectfully submitted, Judith Pfund, CPA Executive Director of Finance

Categories

Special Tests & Provisions Cash Management School Nutrition Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $493,914
84.010 Title I Grants to Local Educational Agencies $128,465
10.553 School Breakfast Program $120,565
84.011 Migrant Education_state Grant Program $44,371
10.559 Summer Food Service Program for Children $30,951
84.425 Education Stabilization Fund $28,688
84.367 Improving Teacher Quality State Grants $28,559
84.424 Student Support and Academic Enrichment Program $10,461
93.778 Medical Assistance Program $2,695
10.649 Pandemic Ebt Administrative Costs $614