Finding Text
Program Information: Child Nutrition Cluster, U.S. Department of Agriculture, passed through Michigan Department of Education, CFDA # 10.553, 10.555 and 10.559. Criteria: The School District must have controls in place to monitor the requirement that the School District limit its net cash resources to an amount that does not exceed three months? average expenditures for its non-profit school food service per requirements in 7 CFR 201.14(b). Condition: The School District did not have controls in place to follow the spend down plan in order to return to compliance. As a result, the ending fund balance for the School District?s food service program exceeded the average three months of expenditures by approximately $930,000. Questioned Costs: None. Cause and Effect: As a result of noncompliance noted as of June 30, 2021, the School District had developed a plan to enhance the food service program and return to compliance. That plan was not followed, resulting in repeated noncompliance as of June 30, 2022. Recommendation: We recommend that the School District review its net cash resources throughout the year, particularly as changes in the program occur, to verify that they are not in excess of three months of expenditures. A plan needs to be developed to ensure that funds are reinvested into the program or look at obtaining any additional waivers that may be available to them to mitigate the risk of future noncompliance. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.