Finding Text
Federal Program Audit Findings2022-01 ? Significant DeficiencyFederal Program: Child Nutrition ClusterAssistance Listing Number: 10.553, 10.555, 10.559, & 10.649Federal Agency: U.S. Department of AgriculturePass-through entity: Michigan Department of EducationPass-through number: 211971, 220910, 211961, 221961, 210904, 210980Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures.Condition: Lawton 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 another fund.Questioned Costs: NoneCause: 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.