Finding Text
OLIVET COMMUNITY SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2022 78 Section III - Federal Award Findings and Question Costs Finding 2022-001: Considered a significant deficiency Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 221971, 211971, 221961, 221981, 221980, 220910, 211980, 211961, 210904 Criteria: In order to comply with Michigan Department of Education requirements, the District?s food service fund balance cannot exceed three months of operating expenditures. Condition: Olivet Community Schools 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 funds cannot be transferred to the general fund. Questioned Costs: None Cause: The District?s received more funding than anticipated through the community eligibility provision and was unable to reduce the fund balance before year end. Effect: The District has an excess fund balance in the non-profit food service fund. Recommendation: The District should submit and implement a 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.