Crescent Academy

Program Income Finding Type ? Noncompliance with laws and regulations. Criteria ? In accordance with 7 CFR 210.19(a)(2), the Academy?s Nonprofit School Food Service Account?s (NSFSA) fund balance, or net cash resources, must not exceed three months? average expenditures. Condition ? The Academy?s NSFSA?s fund balance exceeded the allowable three months? average expenditures balance at June 30, 2021. The Academy had approximately 4.85 months of expenditures as fund balance at June 30, 2021. The Academy will be required to submit a Plan of Action and obtain Michigan Department of Education?s (MDE) prior approval to improve the food quality or take other action designed to improve the program in accordance with 7 CFR 210.19(a)(2). Questioned Costs ? None Cause ? Unknown Effect ? The Academy is not in compliance with U.S. Department of Agriculture regulations. Recommendation ? The Academy should submit a Plan of Action and obtain Michigan Department of Education?s (MDE) prior approval to improve the food quality or take other action designed to improve the program in accordance with 7 CFR 210.19(a)(2). Auditee Response ? The Academy agrees with the finding and is implementing procedures in order to prevent this noncompliance in the future.

Findings and Recommendations: 2021 ? 001: Finding Type: Noncompliance with Laws and Regulations. Condition: The Academy?s NSFSA?s fund balance exceeded the allowable three months? average expenditures at June 30, 2021. The Academy had approximately 4.85 months of expenditures as fund balance at June 30, 2021. Recommendation: The Academy should submit a spend down plan and obtain Michigan Department of Education?s prior approval to improve the food quality or take other action to improve the program in accordance with 7 CFR 210.19(a)(2). Corrective Action Plan: The Academy is aware of the finding and is implementing procedures in order to prevent further noncompliance in the future. The Academy will be creating and implementing a spend down plan once approval of the plan is received by Michigan Department of Education. Responsible Department: Administration department and Food Service department. Responsible Person: Dr. Tanya Adams (Deputy Superintendent) in conjunction with the Food Service department. Planned Completion Date (TBD or Date): Spend-down plan to be implemented and expected completion prior to June 30, 2022.