Finding Text
2022-001 ? Program Income ? Food Service Fund Balance Finding Type. Immaterial Noncompliance in Internal Controls over Compliance Federal program(s). U.S. Department of Agriculture Child Nutrition Cluster (ANL# 10.553, and 10.555) Criteria. The USDA requires the ending balance of the school food service fund not exceed three months? average of operating expenses. Condition. As of June 30, 2022, the District?s fund balance exceeded three months? average of operating expenses. Cause. This condition appears to be the result of the extra funding received by the District?s related to the Seamless Summer Option for Children (COVID-19). Effect. As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District implement a plan to spend down the fund balance and submit this plan to MDE for approval. View of Responsible Official. The District is aware of the USDA fund balance requirements. The District operated under the Seamless Summer Option during fiscal year 2021-22 which allowed all of our students to eat both breakfast and lunch for free. The District received a large amount of federal funding which in turn resulted in more fund balance than allowed by USDA at 6/30/2022 ($5,466). The Food Service Director and Business Manager are in the process of creating a spenddown plan to be submitted to MDE which will move fund balance within an allowable range. Responsible officials. Director of Finance Estimated Completion Date. June 2023