Finding Text
SPECIAL TESTS AND PROVISIONS Federal Agency: Department of Agriculture Federal Program or Cluster: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.559 Federal Award Numbers and Years: Award Periods 7/1/2021-6/30/2022: K241 Questioned Costs: $0 Condition: The School's food service account balance exceeded the allowable average three months of operating expenses at June 30, 2022. Criteria: The USDA requires that the ending balance of the nonprofit school food service account does not exceed three months’ average of operating expenses. If an excess fund balance should occur, the SFA 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 the Indiana Department of Education ("IDOE"), School Finance Division, prior to approval of the Annual Financial Report ("AFR"). Cause: During the 2021 fiscal year, the School’s revenues exceeded expenditures, such that, when added to the opening fund balance, the final fund balance caused the fund to be in noncompliance. Effect: The School's AFR could not be approved until a spending plan was provided to the IDOE. Recommendation: Management of the School should implement a review process that includes reviewing its food service account regularly to avoid excess cash balances. Identification of repeat findings: This finding is a repeat finding previously included as finding number 2021-012 in the audit of the financial statements for the year ended June 30, 2021. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has established a monthly meeting between the Business Manager and the Cafeteria Director in order to review the monthly budget and allocate all appropriate expenses in a timely manner. The Business Manager has implemented these changes. The School represents that this was completed during the fiscal year ended June 30, 2023, however, a single audit has not been conducted for this period.