District response to Audit Finding 2022-001 ? Contact Person Responsible for Corrective Action ? Scott Brown and Jennifer Goodman Management agrees with this audit finding. The district received an unprecedented amount of federal funding in 2021-2022 to reimburse the district for Food Service meals for all students. As a result, the district's Food Service program completed the 2021-2022 fiscal year with an ending fund balance that exceeded the average three months of expenditures threshold by approximately $144,000. The corrective action planned is for management to meet and determine how to spend this $144,000 excess amount toward allowable Food Service program expenditures no later than June 30, 2023. The District must then report to the Michigan Department of Education (MOE) how it expects to spend this excess amount by January 2023. The district expects to meet the January 2023 deadline to submit a spending plan to MDE. The district also expects to spend down the excess $144,000 by June 30, 2023. District response to Audit Finding 2022-002 ? Contact Person Responsible for Corrective Action ? Scott Brown and Jennifer Goodman Management agrees with this audit finding. The district did not have controls in place to determine if contractors are complying with the Davis-Bacon Act regarding the payment of prevailing wage rates. District personnel were unaware that monitoring compliance with the Davis-Bacon Act regarding the payment of prevailing wage rates was a responsibility of the district. The corrective action plan to address this audit finding begins with education. Management now understands that compliance with the Davis-Bacon Act must be considered when working with contractors and subcontractors on federal contracts in excess of $2,000. The district has also updated the district's Business Office Operating Procedures Manual to include language that prevailing wage rates and review of contractor's employee timesheets must be complied. The district expects to be in compliance in regard to all Davis-Bacon Act regulations moving forward when contracting with contractors and subcontracted in excess of $2,000.00 when utilizing federal grant funding.