Finding Text
Federal agency: U.S. Department of AgricultureFederal program title: U.S.D.A. Seamless Summer OptionCFDA Number: 10.553Pass-Through Agency: Michigan Department of EducationType of Finding: Significant Deficiency in Internal Control over ComplianceCriteria: Per 7 CFR section 200.219 (a)(2), the fund equity of the District?s food service program should not exceed 3 months? average expenditures.Condition: The District ended the fiscal year with fund equity in excess of 3 months? average expenditures.Questioned costs: NoneCause: There are no internal controls in place to ensure compliance with the fund equity requirement.Effect: The District has a risk of noncompliance with the requirements of the program.Recommendation: The District should review its policies and procedures and implement a process to periodically review the fund equity of the food service program and make spending adjustments as needed.View of responsible officials: We agree with the recommendation and will implement the proper procedures immediately.