OAKRIDGE PUBLIC SCHOOLSLocal Government

Finding 2025-001: Education Stabilization Fund Special Reporting Procedures U.S. Department of Education Type of Finding: Control Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 84.425U and 84.425V Award numbers: COVID-19 213713 2122 and COVID-19 221037 2324 Award year end: September 30, 2024 Specific Requirement: Reporting—Special Reporting Criteria: OMB Form No. 1810-0749 requires Education Stabilization Fund grantees to submit reports with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Local educational agency / subrecipients submit data to the state education agency (SEA) / Governor for the SEA’s / Governor’s report. Questioned Costs: None. Condition: The required American Rescue Plan Section (ARP) 11t Programmatic Monitoring Survey was not submitted to the State of Michigan. Context: During our detailed testing of special reporting for the Education Stabilization Fund programs, we noted that the ARP Section 11t Programmatic Monitoring Survey was not prepared to comply with federal requirements. The report was subsequently prepared and submitted. Effect: Failure to prepare and submit special reporting results in non-compliance with federal compliance requirements. Cause: The School District was unaware of this requirement. Repeat Finding: This is not a repeat finding. Recommendation: The School District should create a process for gathering all requirements for special reporting under Uniform Guidance and the School District should prepare and submit the necessary special reports. Views of Responsible Officials: The School District agrees with this finding.

Finding 2024-001: Internal Controls Over Monthly Meal Claims Reports Type of Finding: Control U.S. Department of Agriculture Pass-through Entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555 and 10.559 Award Numbers: 231970, 241970, 231960, 241960, Bonus and Entitlement Commodities, 230900 and 240900 Award Year End: September 30, 2023 and September 30, 2024 Specific Requirement: (L.) Reporting Criteria: Section 200.303 of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to establish and maintain effective internal control over the federal award that provides a reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the specified guidance that requires proper segregation of duties by dividing key responsibilities among different people to reduce the risk of error or fraud. This should include separating the responsibilities for authorizing transactions, processing and recording them, reviewing the transactions, and handling any related assets. No one individual should control all key aspects of a transaction or event. In addition, this guidance also requires transactions and internal controls to be clearly documented, and the records should be properly maintained and readily available for examination. Questioned Costs: None. Condition: During our detailed testing of the area of reporting, we noted that the reports were missing review and approval by an appropriate individual with adequate skills, knowledge, and experience. Context: The monthly meal claims reports filed during the year were not reviewed and approved by an appropriate individual. Effect: Failure to properly review reports before they are submitted could result in inaccurate information being transmitted, resulting in a compliance finding. Cause: The Food Service Director was unaware of the requirement to have a documented review and approval over the area of reporting. Repeat Finding: This is not a repeat finding. Recommendation: The School District should follow established procedures to require the documented review and approval of all reports by an individual with adequate skills, knowledge, and experience prior to submission. Views of Responsible Officials: The School District agrees with this finding.

Department of Agriculture Finding 2022-001: Child Nutrition Cluster Resource Management Procedures Pass-through entity: Michigan Department of Education Assistance Listing Number: 10.553, 10.555, and 10.559 Award Numbers: COVID-19 211971, COVID-19 221971, COVID-19 211961, COVID-19 221961, COVID-19 210904, COVID-19 220904, and Entitlement Commodities Award Year End: June 30, 2022 Specific Requirement: Resource Management and Special Tests ? General Program Management Criteria: Section 210.14(b) and 210.19(a)(1) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a School District to limit its net cash resources in the Food Service Fund to the maximum allowable amount of three months of average expenditures. Questioned Costs: None. Condition: During our testing of the Child Nutrition Cluster net cash resources, we noted that the School District Food Service Fund net cash resources were in excess of maximum allowable amount. Context: As of June 30, 2022, the School District Food Service Fund net cash resources were in excess of the maximum allowable amount. Effect: The School District could receive reduced funding in future years if the condition continues. Cause: The School District had planned to reduce its Food Service Fund net cash resources below the maximum threshold, but it was unable to get proper approvals, order and receive purchased items and/or services by the end of the fiscal year. Repeat Finding: No. Recommendation: The School District should continue its spend-down plan to ensure it reduces its Food Service Fund net cash resources below the maximum allowable amount. Views of Responsible Officials: The School District agrees with this finding.