Finding Text
2022-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number(s): 10.553 & 10.555 & 10.559 Federal Award Number: 211971, 221971, 211961, 211980, 221961, 221980, 220910-2022, 210904, and Entitlement Commodities Federal Award Year: July 1, 2021 to September 30, 2022 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) Criteria: The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. 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 additional revenues received from the seamless summer option programs. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $340,999 at fiscal year-end exceeded the allowable three months of expenditures threshold by $42,021. Identification of Repeat Findings: Repeat finding Recommendation: We recommend the District closely monitor its budget for the year ended June 30, 2023, to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Food Service Director has a spend down plan in place and is purchasing equipment and incurring additional labor costs for packaging meals to spend down the remaining excess. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2023.