Finding 599003 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-07

AI Summary

  • Core Issue: The District's food service fund balance exceeds the limit of three months' expenditures.
  • Impacted Requirements: A spending plan must be created and submitted to the Michigan Department of Education to reduce the fund balance.
  • Recommended Follow-Up: Develop and implement a budget and corrective action plan for the 2022-2023 school year to address the excess balance.

Finding Text

Finding 2022-001 ? Considered a significant deficiency Federal Program: Child Nutrition Cluster ALN #: 10.553,10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 210904, 211961, 211971, 211965, 220910, 221961, 221971 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: The District currently has more than the allowable fund balance in the non-profit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund balance cannot be transferred to the general fund. Questioned Costs: None Cause: The District participated in the Seamless Summer Option program causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.

Categories

School Nutrition Programs Subrecipient Monitoring Cash Management Significant Deficiency

Other Findings in this Audit

  • 22559 2022-001
    Significant Deficiency
  • 22560 2022-001
    Significant Deficiency
  • 22561 2022-001
    Significant Deficiency
  • 22562 2022-001
    Significant Deficiency
  • 22563 2022-001
    Significant Deficiency
  • 22564 2022-001
    Significant Deficiency
  • 22565 2022-001
    Significant Deficiency
  • 599001 2022-001
    Significant Deficiency
  • 599002 2022-001
    Significant Deficiency
  • 599004 2022-001
    Significant Deficiency
  • 599005 2022-001
    Significant Deficiency
  • 599006 2022-001
    Significant Deficiency
  • 599007 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $188,192
10.553 School Breakfast Program $85,411
21.027 Coronavirus State and Local Fiscal Recovery Funds $81,501
84.010 Title I Grants to Local Educational Agencies $76,792
84.027 Special Education_grants to States $29,200
84.358 Rural Education $22,233
84.425 Education Stabilization Fund $18,215
32.009 Emergency Connectivity Fund Program $16,800
84.367 Improving Teacher Quality State Grants $13,393
84.424 Student Support and Academic Enrichment Program $10,000
10.558 Child and Adult Care Food Program $1,125
10.649 Pandemic Ebt Administrative Costs $614