Finding Text
Finding 2022-001 (Repeat Finding) Program Name ? (Nutrition Cluster) National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed though Michigan Department of Education. CFDA #10.553/10.555/10.559. Pass-through Entity ?? Michigan Department of Education Finding Type - Noncompliance Criteria ? Federal register section 7 CFR Part 210.14b requires school districts to limit its School Breakfast and Lunch Fund net resources to an amount that does not exceed three months average expenditures. Condition ? The District?s net cash resources exceeded three months average expenditures at June 30, 2022. Questioned Costs ? None Context ? The District did not meet the three months average expenditure test at June 30, 2022. Cause/Effect ? Management did monitor the net cash resources to ensure they did not exceed three months average expenditures. However, the kitchen equipment the District ordered in January 2022 had not been received as of June 30, 2022 and caused the District to have excess food service fund balance. Recommendation: We recommend that the District review the Food Service Fund net cash resources periodically to ensure that the fund will not have an excess of three months average expenditures at the fiscal year end. The District should take this requirement into consideration when preparing the annual budget, and any subsequent adjustments to the budget.