Finding 609031 (2022-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-24
Audit: 28296
Organization: Gladwin Community Schools (MI)

AI Summary

  • Core Issue: The School District's net cash resources exceeded the allowed limit by $313,721 as of June 30, 2022.
  • Impacted Requirements: Federal regulations require that net resources in the Food Service Fund do not exceed three months of average expenditures.
  • Recommended Follow-Up: The School District should regularly monitor net cash resources and adjust budgeting practices to comply with federal requirements.

Finding Text

2022-002 (Repeat Finding 2021-002) Program Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. Assistance Listing Number 10.553, 10.555, 10.559. Criteria Federal register section 7 CFR Part 210.14b requires school districts to limit its Food Service Fund's net resources to an amount that does not exceed three months average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None Context Applicable requirement is for school districts with a food services management company operating service activities. Effect Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $313,721. 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. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action The Superintendent, Business Manager and Food Service Director will meet prior to the end of December 2022 to develop an outline of a purchasing/use of funds plan.

Categories

School Nutrition Programs

Other Findings in this Audit

  • 32588 2022-002
    Significant Deficiency Repeat
  • 32589 2022-002
    Significant Deficiency Repeat
  • 32590 2022-002
    Significant Deficiency Repeat
  • 32591 2022-002
    Significant Deficiency Repeat
  • 32592 2022-002
    Significant Deficiency Repeat
  • 32593 2022-002
    Significant Deficiency Repeat
  • 32594 2022-002
    Significant Deficiency Repeat
  • 32595 2022-002
    Significant Deficiency Repeat
  • 609030 2022-002
    Significant Deficiency Repeat
  • 609032 2022-002
    Significant Deficiency Repeat
  • 609033 2022-002
    Significant Deficiency Repeat
  • 609034 2022-002
    Significant Deficiency Repeat
  • 609035 2022-002
    Significant Deficiency Repeat
  • 609036 2022-002
    Significant Deficiency Repeat
  • 609037 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $648,525
84.027 Special Education_grants to States $546,131
32.009 Emergency Connectivity Fund Program $442,150
10.553 School Breakfast Program $291,718
84.425 Education Stabilization Fund $199,100
84.367 Improving Teacher Quality State Grants $130,156
84.424 Student Support and Academic Enrichment Program $46,919
84.358 Rural Education $35,506
21.027 Coronavirus State and Local Fiscal Recovery Funds $32,016
10.555 National School Lunch Program $10,024
10.649 Pandemic Ebt Administrative Costs $3,063
93.778 Medical Assistance Program $2,698
10.559 Summer Food Service Program for Children $2,018
10.558 Child and Adult Care Food Program $1,286