Finding Text
2022-001 (Repeat Finding 2021-001) Program Nutrition Cluster - National School Breakfast, National School Lunch, Child and Adult Care Food Program and Summer Food Service Program, U.S. Department of Agriculture, passed through Michigan Department of Education. CFDA # 10.553, 10.555, 10.559. Criteria The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Questioned costs None. Context Management is required to monitor net cash resources and their spend down plan to ensure that they did not exceed three months of average expenditures. Effect Management is required to monitor net cash resources and their spend down plan 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 $151,412. Cause Management did not monitor net cash resources and their spend down plan to ensure that they did not exceed three months of average expenditures. 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 and that the School District closely monitors their spend down plan with the Michigan Department of Education. 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 excess Food Service fund balance was due to the additional funding received while the school operated the SFSP, SSO and CACFP programs, along with an excess fund balance from the prior year. Our prior year spend down plan included equipment replacement for the High School cafeteria and food service areas. Due to delays with shipping and manufacturing, the equipment wasn?t delivered and paid for until July 2022, after our fiscal year end. Had the equipment been delivered and paid for prior to year-end, the District would not have incurred an excess fund balance.