Finding Text
REPEAT FINDING – 2022‐002, 2021‐001 & 2020‐002
Finding Type – Noncompliance with laws and regulations
Program Income
Criteria – In accordance with 7 CFR 210.19(a)(2), the Academy’s Nonprofit School Food Service Account’s (NSFSA) fund balance, or net cash resources, must not exceed three months’ average expenditures.
Condition – The Academy’s NSFSA’s fund balance exceeded the allowable three months’ average expenditures balance as of June 30, 2023. The Academy had approximately 4.96 months of expenditures as fund balance as of June 30, 2023. The Academy will be required to submit a Plan of Action and obtain Michigan Department of Education’s (MDE) prior approval to improve the food quality or take other action designed to improve the program in accordance with 7 CFR 210.19(a)(2).
Questioned Costs – None
Cause – Unknown
Effect – The Academy is not in compliance with U.S. Department of Agriculture regulations.
Recommendation – The Academy should submit a Plan of Action and obtain Michigan Department of Education’s (MDE) prior approval to improve the food quality or take other action designed to improve the program in accordance with 7 CFR 210.19(a)(2).
Auditee Response – The Academy agrees with the finding has a current Plan of Action to spend down its excess cash resources. The Academy has revised and implemented its internal controls in effort to resume compliance with respect to maintaining a fund balance less than three months’ average expenditures.