FAC Explorer

Finding 59734 (2022-001)

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Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-25
Audit: 55813
Organization: Memphis Community Schools (MI)
Auditor: Uhy LLP

AI Summary

  • Excess Fund Balance: The School District's fund balance exceeded federal limits by $30,560 as of June 30, 2022.
  • Compliance Issue: This situation violates 7 CFR 210.19, which restricts cash resources to three months' average expenditures.
  • Next Steps: The School District should create a formal plan to reduce the fund balance to comply with federal regulations.

Finding Text

2022-001: Excess Fund Balance Type: Compliance Assistance Listing Number, Federal Agency, Program Name, Program Title, Pass-Through Grantor, and Pass-Through Name and Grant Number: U.S. Department of Agriculture, Passed through the Michigan Department of Education, Child Nutrition Cluster, 10.553 and 10.559 Criteria: 7 CFR 210.19 limits net cash resources to the three months? average expenditures Condition: As of June 30, 2022, the School District?s fund balance exceeded this limit. Context: The net cash resources calculation resulted in a $30,560 excess fund balance at June 30, 2022. Cause: During fiscal 2022, the School District received more federal dollars than anticipated. Effect: The program is not in compliance with federal regulations. Recommendation: The School District should adopt a formal plan to reduce the Food Service Fund fund balance to allowable limits. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Please find below the planned corrective action, including steps that have already been taken/will be taken and the planned completion date: In regards to the Excess Fund Balance that exists within our Food Service Fund; Superintendent Sara Dobbelaer, Food Service Director Laura Nickelson. and Business Director Adam Walsh are continuing to work together to develop an acceptable Spend Down Plan of Action to best utilize these funds and spend these funds in the allowable time frame to benefit the Food Service program at Memphis Community Schools. We will follow the guidance provided by the Michigan Department of Education in regards to Food Service Excess Fund Balances, including the Pre-Approved Food Service Equipment list. and will submit our Spend Down Plan of Action to MDE within the proper time lines. Additionally. we will implement a plan to ensure that an Excess Fund Balance will not occur in the future by monitoring the Fund Balance throughout the year and proactively investing in our Food Service program. Contact person: Adam Walsh, Business Director We appreciate the opportunity to submit our corrective action plan to the findings reported in the Schedule of Findings and Questioned Costs for the year ending June 30. 2022. We believe the implementation of the above procedures will not only correct the findings, but prevent them from recurring in the future.

Categories

School Nutrition Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $655,867
84.010 Title I Grants to Local Educational Agencies $97,215
84.027 Special Education_grants to States $37,476
10.555 National School Lunch Program $24,156
84.367 Improving Teacher Quality State Grants $21,975
84.424 Student Support and Academic Enrichment Program $10,000
93.778 Medical Assistance Program $5,740
10.553 School Breakfast Program $3,884
84.173 Special Education_preschool Grants $1,476
10.649 Pandemic Ebt Administrative Costs $614