Finding Text
POTTERVILLE PUBLIC SCHOOLS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 Section III - Federal Award Findings and Questioned Costs Finding 2022-001 ? Considered a Significant Deficiency Federal Program: Child Nutrition Cluster ? ALN 10.555, 10.553 and 10.559 ALN: 10.555, 10.559, and 10.553 Federal Agency: U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Pass-through Number: 211961, 221961, 220910, 211971, 221971, 220904, 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: 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 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 unanticipated closure meal reimbursements from July through June 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. The District has an active corrective action plan that has been approved by MDE and has spent down substantial