Finding Text
PORTLAND PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Question Costs Finding 2022-001: Significant Deficiency (repeat finding of 2021-001) 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: 220910, 211961, 221961, 211971, 221971, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Portland Public 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 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Question costs: None Cause: The District participated in the Seamless Summer Option program which is 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 developing an implementation plan and procedures to prevent this in the future.