Finding Text
Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. 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 of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.