EIN: 381854163
UEI: XD6NWHLC63N8
Audited by: Roslund, Prestage & Company, P.C.
Oversight agency: 10 [Department of Agriculture]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 15, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 15, 2026 (84 days ago).
What is a management decision? →The District charged to the food service fund the cost of an asset that was not included on the approved equipment list from Michigan Department of Education and did not obtain approval from Michigan Department of Education prior to purchase. Criteria: As detailed in 2 CFR 200.439(b)(1), “Capital expenditures for general purpose equipment, buildings, and land are allowable as direct costs, but only with the prior written approval of the Federal agency or pass-through entity.” Cause: Management oversight. Effect: Amounts charged to the food service fund may be considered unallowed. Context: The District charged the cost of the loading dock to the food service fund. Questioned Costs: Amount charged to the food service fund is below $25,000. Recommendation: We recommend that the District review/update procedures to ensure that equipment purchased from the food service fund is either on the approved equipment list, or approval from Michigan Department of Education has been obtained prior to purchase. Management’s Resp: We are in agreement with this finding.
Show full finding ▾Hide full finding ▴2025-002 Type: Significant Deficiency in Internal Control / Noncompliance Program: Child Nutrition Cluster Condition: The District charged to the food service fund the cost of an asset that was not included on the approved equipment list from Michigan Department of Education and did not obtain approval from Michigan Department of Education prior to purchase. Criteria: As detailed in 2 CFR 200.439(b)(1), “Capital expenditures for general purpose equipment, buildings, and land are allowable as direct costs, but only with the prior written approval of the Federal agency or pass-through entity.” Cause: Management oversight. Effect: Amounts charged to the food service fund may be considered unallowed. Context: The District charged the cost of the loading dock to the food service fund. Questioned Costs: Amount charged to the food service fund is below $25,000. Recommendation: We recommend that the District review/update procedures to ensure that equipment purchased from the food service fund is either on the approved equipment list, or approval from Michigan Department of Education has been obtained prior to purchase. Management’s Resp: We are in agreement with this finding.
Federal Award - Finding Number: 2025-002 Responsible Person: Director of Finance Condition: The district charged to the food service fund the cost of an asset that was not included on the approved equipment list from Michigan Department of Education and did not obtain approval from Michigan Department of Education prior to purchase. Corrective Action Plan: All food service fund asset purchases made going forward will be compared to the approved equipment list or approved by the Michigan Department of Education prior to purchase. Anticipated Correction Date: Immediate and Ongoing
FAC accepted this audit on December 1, 2024 — management decision was due June 1, 2025.
Expenditures charged to the grant were not authorized in the grant budget. Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits”. Cause: Management’s misunderstanding of costs allowed under this grant. Effect: Unallowed costs were charged to the grant based on comparison to MDE approved budgets. Consequently, reimbursements (funding sources) may be overstated. Context: Amounts expended for this grant by function code and/or object code were over the amounts allowed in the MDE approved budget by $74,502. Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish internal controls to assure that charges to the grant do not exceed budget. Management’s Resp: Management is in agreement with this recommendation.
Show full finding ▾Hide full finding ▴Finding 2024-004 – ACTIVITIES ALLOWED OR UNALLOWED and ALLOWABLE COSTS/COST PRINCIPLES Type: Material weakness in internal control over compliance / Noncompliance Program: Title I (ALN 84.010) Condition: Expenditures charged to the grant were not authorized in the grant budget. Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits”. Cause: Management’s misunderstanding of costs allowed under this grant. Effect: Unallowed costs were charged to the grant based on comparison to MDE approved budgets. Consequently, reimbursements (funding sources) may be overstated. Context: Amounts expended for this grant by function code and/or object code were over the amounts allowed in the MDE approved budget by $74,502. Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish internal controls to assure that charges to the grant do not exceed budget. Management’s Resp: Management is in agreement with this recommendation.
Finding 2024-004 - Corrective Action Plan CHSD - 2023-2024 Audit Findings Finding 2024-004 - Activities Unallowed or Allowed and Allowable Costs Cost Principles Type: Material weakness in internal control over compliance / Noncompliance. Condition: Expenditures charged to the grant were not authorized in the grant budget. Corrective action to be taken: Grant agreements will be reviewed, approved, and maintained by all applicable shareholders with correlating budgeting metrics in place to ensure compliance continuity throughout the life cycle of the grant. The collaborative approach is designed to provide a thorough understanding of allowable costs, provide redundancy in grant metrics in the event of personnel changes, and support the established internal controls to assure charges to the grant do not exceed the budget. Corrective action timeline: The corrective action is effective immediately. District leader responsible for Corrective Action Plan: The Finance Director will be responsible for ensuring compliance with this corrective action. Respectfully submitted, Marc Forrest, Director of Finance
Expenditures charged to the grant were not authorized in the grant budget. Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits”. Cause: Management’s misunderstanding of costs allowed under this grant. Effect: Unallowed costs were charged to the grant based on comparison to MDE approved budgets. Consequently, reimbursements (funding sources) may be overstated. Context: Amounts expended in the current year for this grant by function code and/or object code were over the amounts allowed in the MDE approved budget by $377,467. Also, supplies and equipment charged to the grant were not approved in the grant. Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish internal controls to assure that 1) charges to the grant do not exceed budget, and 2) only allowable costs are charged to the grant. Management’s Resp: Management is in agreement with this recommendation.
Show full finding ▾Hide full finding ▴Finding 2024-005 – ACTIVITIES ALLOWED OR UNALLOWED and ALLOWABLE COSTS/COST PRINCIPLES (repeat comment) Type: Material weakness in internal control over compliance / Noncompliance Program: COVID 19 Education Stabilization Fund (ALN 84.425U – ESSER III Formula) Condition: Expenditures charged to the grant were not authorized in the grant budget. Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits”. Cause: Management’s misunderstanding of costs allowed under this grant. Effect: Unallowed costs were charged to the grant based on comparison to MDE approved budgets. Consequently, reimbursements (funding sources) may be overstated. Context: Amounts expended in the current year for this grant by function code and/or object code were over the amounts allowed in the MDE approved budget by $377,467. Also, supplies and equipment charged to the grant were not approved in the grant. Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish internal controls to assure that 1) charges to the grant do not exceed budget, and 2) only allowable costs are charged to the grant. Management’s Resp: Management is in agreement with this recommendation.
Finding 2024-005 - Corrective Action Plan CHSD - 2023-2024 Audit Findings Finding 2024-005 - Activities Unallowed or Allowed and Allowable Costs Cost Principles Type: Material weakness in internal control over compliance / Noncompliance. Condition: Expenditures charged to the grant were not authorized in the grant budget. Corrective action to be taken: Grant agreements will be reviewed, approved, and maintained by all applicable shareholders with correlating budgeting metrics in place to ensure compliance continuity throughout the life cycle of the grant. The collaborative approach is designed to provide a thorough understanding of allowable costs, provide redundancy in grant metrics in the event of personnel changes, and support the established internal controls to assure charges to the grant do not exceed the budget and only allowable costs are charged to the grant. Corrective action timeline: The corrective action is effective immediately. District leader responsible for Corrective Action Plan: The Finance Director will be responsible for ensuring compliance with this corrective action. Respectfully submitted, Marc Forrest, Director of Finance
2023-003
The District was unable to provide evidence that prevailing wages were paid for the two construction projects charged to the grant. Criteria: Per 2 CFR 200, Appendix II(D), contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. Cause: Management oversight. Effect: Wages paid for construction projects may have been paid below the prevailing wage requirements. Recommendation: We recommend that the District review their process over awarding contracts paid with federal funds to ensure that prevailing wage requirements are included in the contract language and obtain documentation that prevailing wages were paid. Management’s Resp: We are in agreement with this finding.
Show full finding ▾Hide full finding ▴Finding 2024-006 – SPECIAL TESTS Type: Significant Deficiency in internal control over compliance / Noncompliance – Prevailing Wage Program: COVID 19 - Education Stabilization Fund (ALN 84.425U – ESSER III Formula) Condition: The District was unable to provide evidence that prevailing wages were paid for the two construction projects charged to the grant. Criteria: Per 2 CFR 200, Appendix II(D), contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. Cause: Management oversight. Effect: Wages paid for construction projects may have been paid below the prevailing wage requirements. Recommendation: We recommend that the District review their process over awarding contracts paid with federal funds to ensure that prevailing wage requirements are included in the contract language and obtain documentation that prevailing wages were paid. Management’s Resp: We are in agreement with this finding.
Finding 2024-006 - Corrective Action Plan CHSD - 2023-2024 Audit Findings Finding 2024-006 Special Tests Type: Significant Deficiency in internal control over compliance / Noncompliance Prevailing Wage. Program: COVID 19 - Education Stabilization Fund (ALN 84.425U ESSER III Formula) Condition: As a result of Management oversight, the District was unable to provide evidence that prevailing wages were paid for the two construction projects charged to the grant. Corrective action to be taken: Grant agreements will be reviewed, approved, and maintained by all applicable shareholders to ensure awarded contracts paid with state or federal funds from the grant has the requisite legal compliance metrics guaranteeing that prevailing wage requirements are included in the contract language and obtain documentation that prevailing wages are paid. Corrective action timeline: The corrective action is effective immediately. District leader responsible for Corrective Action Plan: The Finance Director will be responsible for ensuring compliance with this corrective action. Respectfully submitted, Marc Forrest, Director of Finance
FAC accepted this audit on April 16, 2024 — management decision was due October 16, 2024.
The District was unable to provide documentation that identified wages, by employee, that were charged to Education Stabilization Fund grants. Criteria: As detailed in 2 CFR 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must, “Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable and properly allocated.” Cause: Management failed to maintain adequate documentation of wages and related fringe benefit allocations. Effect: Approximately $1,340,000 of expenses charged to Education Stabilization Fund were not able to be tested/substantiated. Context: Wages and the related fringe benefits were allocated to Education Stabilization Fund grants through a series of journal entries rather than the typical process of allocating wages via the payroll system based on hours each employee spent in each function or cost center. Documentation of how the journal entries were prepared was not maintained. Consequently, wages and the related fringe benefits allocated via journal entries could not be reconciled to payroll records. Recommendation: We recommend that the District establish internal controls to ensure that appropriate support for journal entries is developed and maintained. Management’s Resp: We are in agreement with this finding.
Show full finding ▾Hide full finding ▴Finding 2023-001 – ACTIVITIES ALLOWED OR UNALLOWED and ALLOWABLE COSTS/COST PRINCIPLES Type: Material Weakness in Internal Control / Noncompliance Program: COVID 19 Education Stabilization Fund (ALN 84.425D – ESSER II Formula, ESSER II Section 98c Learning Loss, ALN 84.425U – ESSER III Formula) Condition: The District was unable to provide documentation that identified wages, by employee, that were charged to Education Stabilization Fund grants. Criteria: As detailed in 2 CFR 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must, “Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable and properly allocated.” Cause: Management failed to maintain adequate documentation of wages and related fringe benefit allocations. Effect: Approximately $1,340,000 of expenses charged to Education Stabilization Fund were not able to be tested/substantiated. Context: Wages and the related fringe benefits were allocated to Education Stabilization Fund grants through a series of journal entries rather than the typical process of allocating wages via the payroll system based on hours each employee spent in each function or cost center. Documentation of how the journal entries were prepared was not maintained. Consequently, wages and the related fringe benefits allocated via journal entries could not be reconciled to payroll records. Recommendation: We recommend that the District establish internal controls to ensure that appropriate support for journal entries is developed and maintained. Management’s Resp: We are in agreement with this finding.
Finding 2023-001 - Corrective Action Plan CHSD - 2022-2023 Audit Findings Finding 2023-001 - ACTIVITIES ALLOWED OR UNALLOWED / ALLOWABLE COSTS/COST PRINCIPLES Type: Material Weakness in Internal Control / Noncompliance Program: COVID 19 Education Stabilization Fund (ALN 84.425D – ESSER II Formula, ESSER II Section 98c Learning Loss, ALN 84.425U – ESSER III Formula) Condition: The District was unable to provide documentation that identified wages, by employee, that were charged to Education Stabilization Fund grants. Corrective action to be taken: Payroll transactions will be recorded at the most granular level to ensure accuracy and transparency in the resulting outcomes. The issue at hand was a result of an overarching labor transfer at the top level of the labor expense accounts. The errant transfer neglected to properly align the underlying transactions, at the employee weekly payroll level, with the correlating expense totals being transferred between grants (i.e. each individual employee expense of the same General Ledger expense code structure comprising the total expense of the given General Ledger) and resulted in the disparity noted in the finding. Adherence to this corrective action will ensure strengthened internal control(s) and future grant compliance. Corrective action timeline: The corrective action is effective immediately and applicable to all stakeholders with data entry access to the CHSD financial accounting software platform. District leader responsible for Corrective Action Plan: The Finance Director will be responsible for ensuring compliance with this corrective action and work product of the Finance Director will have a similarly robust check and balance via transaction review and verification by a knowledgeable second source, normally the Account Payable Administrator or the Superintendent. Respectfully submitted, Marc Forrest, Director of Finance
The District was unable to locate all Chromebooks selected for testing that were purchased with ESSER II Formula funds. Also, some Chromebooks that were located did not have adequate identification tags. Criteria: As detailed in 2 CFR 200.313, “Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.” Cause: Inadequate inventory and tag procedures. Effect: Missing equipment potentially not being used for its intended purpose, and property records are not in compliance with 2 CFR 200.313. For equipment that is missing the proper identification tags, the sale or otherwise disposition of the equipment may not be properly recorded. Context: Of the 53 Chromebooks selected for testing, 3 could not be located and 5 of the identification tags did not include the source of funding for the property. Recommendation: We recommend that the District review/update inventory procedures to ensure that all equipment purchased with Federal funds is adequately tracked. Also, we recommend that the District review/update equipment tagging procedures to ensure that equipment purchased with Federal funds properly identify the source of funding. Management’s Resp: We are in agreement with this finding.
Show full finding ▾Hide full finding ▴Finding 2023-002 – EQUIPMENT Type: Material Weakness in Internal Control / Noncompliance Program: COVID 19 Education Stabilization Fund (ALN 84.425D – ESSER II Formula) Condition: The District was unable to locate all Chromebooks selected for testing that were purchased with ESSER II Formula funds. Also, some Chromebooks that were located did not have adequate identification tags. Criteria: As detailed in 2 CFR 200.313, “Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.” Cause: Inadequate inventory and tag procedures. Effect: Missing equipment potentially not being used for its intended purpose, and property records are not in compliance with 2 CFR 200.313. For equipment that is missing the proper identification tags, the sale or otherwise disposition of the equipment may not be properly recorded. Context: Of the 53 Chromebooks selected for testing, 3 could not be located and 5 of the identification tags did not include the source of funding for the property. Recommendation: We recommend that the District review/update inventory procedures to ensure that all equipment purchased with Federal funds is adequately tracked. Also, we recommend that the District review/update equipment tagging procedures to ensure that equipment purchased with Federal funds properly identify the source of funding. Management’s Resp: We are in agreement with this finding.
Finding 2023-002 - Corrective Action Plan CHSD - 2022-2023 Audit Findings Finding 2023-002 – EQUIPMENT Type: Material Weakness in Internal Control / Noncompliance Program: COVID 19 Education Stabilization Fund (ALN 84.425D – ESSER II Formula) Condition: The District was unable to locate all Chromebooks selected for testing that were purchased with ESSER II Formula funds. Also, some Chromebooks that were located did not have adequate identification tags Corrective action to be taken: A. Improved device inventory management – to include ESSER Funded Chromebooks: Consistent with the goal of improved technology device tracking, CHSD will expand the scope of end-user identification information collected and monitored via existing Technology Management Systems. By leveraging and expanding the use of available resources within our Google Administrative Console and GoGuardian, including deployment of a GoGuardian check-in/check-out functionality, CHSD will possess the details and tracking information necessary to provide improved device management and tracking in real time. The following actions, consistent with the goal of this CAP, will be executed as part of the expanded device monitoring project deployment: Complete a full review of CHSD Technology Device inventory. Decommission and/or disable any lost, damaged, stolen, or broken Technology Devices (to include Chromebooks) and document the outcome of each event (i.e. unsalvageable, returned to use, lost/stolen, etc.) prior to recycling or further deployment. Perform routine internal audits of device inventory: o Per trimester o Annual summer audit. B. Proper identification tags on Chromebooks: This is an ongoing corrective action to address devices which were deployed prior to the purchase of an etching device for the District. Deficient devices are in the process of being identified, pulled from operations, properly asset tagged via laser engraving, and returned to operations as time and resources are available. The full review of CHSD Technology Device Inventory, noted in the first bullet of Section A above, will serve as a secondary compliance review opportunity to ensure the current efforts provided full compliance with the asset tag requirements. Additionally, with the purchase of the laser engraver, new Chromebooks/devices are required to have their asset ID and funding source etched as part of the device set up process which is completed prior to deployment. The corrective action timeline is as follows: A. Improved device inventory management – to include ESSER Funded Chromebooks – Noted corrective actions are scheduled to be in place and complete by September 1, 2024. B. Proper identification tags on Chromebooks - Noted corrective action regarding proper Asset Tag being applied to deficient devices is scheduled to be complete by June 30, 2024. District Leader Responsible for Corrective Action Plan: The Technology Administrator will be responsible for ensuring compliance with this corrective action and will provide the results of the noted routine internal inventory and audit events to the Superintendent for review and data warehousing. Respectfully submitted, Marc Forrest, Director of Finance
Expenditures charged to the grant were not authorized in the grant budget. Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits”. Cause: Management’s misunderstanding of costs allowed under this grant. Effect: Unallowed costs were charged to the grant based on / compared to MDE approved budgets. Consequently, reimbursements (funding sources) may be overstated. Context: Amounts expended for these grants by function code and/or object code were over the amounts allowed in the MDE approved budget. Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish internal controls to assure that only allowable costs are charged to the grant. Management’s Resp: Management is in agreement with this recommendation.
Show full finding ▾Hide full finding ▴Finding 2023-003 – ACTIVITIES ALLOWED OR UNALLOWED and ALLOWABLE COSTS/COST PRINCIPLES Type: Significant Deficiency in Internal Control / Noncompliance Program: COVID 19 Education Stabilization Fund (ALN 84.425D – ESSER II Formula, and ALN 84.425U – ESSER III Formula) Condition: Expenditures charged to the grant were not authorized in the grant budget. Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits”. Cause: Management’s misunderstanding of costs allowed under this grant. Effect: Unallowed costs were charged to the grant based on / compared to MDE approved budgets. Consequently, reimbursements (funding sources) may be overstated. Context: Amounts expended for these grants by function code and/or object code were over the amounts allowed in the MDE approved budget. Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish internal controls to assure that only allowable costs are charged to the grant. Management’s Resp: Management is in agreement with this recommendation.
Finding 2023-003 - Corrective Action Plan CHSD - 2022-2023 Audit Findings Finding 2023-003 – ACTIVITIES ALLOWED OR UNALLOWED / ALLOWABLE COST/COST PRINCIPLES Type: Significant Deficiency in Internal Control Program: COVID 19 Education Stabilization Fund (ALN 84.425D– ESSER II Formula, and ALN 84.425U – ESSER III Formula) Condition: Expenditures charged to the grant were not authorized by the grant. Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits”. Cause: Management’s misunderstanding of costs allowed under this grant. Effect: Unallowed costs Corrective action to be taken: 1. District enlisted the services of an outside consultant to work with the Finance Director to address the training, knowledge, and experience (TKE) shortfalls in his skill set. The scope of work was specified to include addressing the grant funding processes, proper public school audit practices, and the proper methods for grant application, grant budgeting, budget implementation, amending budgetary elements as permissible, and reconciling grant funding. 2. The Finance Director will effectively apply the provided TKE skills to CHSD Grant Funding processes to ensure compliance with the budgetary guidelines and constraints of each grant funding opportunity awarded to the CHSD. 3. In the event a need or opportunity arises, whereby a requested transaction exceeds a budgetary constraint of an approved grant budget, the Finance Director will ensure a Grant Budget Amendment or variance request is reviewed and approved by the issuing Agency/Department prior to authorizing or posting the transaction which would create the budget variance. The corrective action timeline is as follows: The corrective action is effective immediately and applicable to all stakeholders with data entry access to the CHSD financial accounting software platform. District Leader Responsible for Corrective Action Plan: The Finance Director will be responsible for ensuring compliance with this corrective action. Respectfully submitted, Marc Forrest, Director of Finance
As of year-end the District had a fund balance in the non-profit food service fund in excess of three months’ operating expenses by approximately $157,881. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management’s Resp: We are in agreement with this finding.
Show full finding ▾Hide full finding ▴Finding 2023-004 – SPECIAL TESTS AND PROVISIONS (repeat comment) Type: Significant Deficiency in Internal Control / Noncompliance Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months’ operating expenses by approximately $157,881. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management’s Resp: We are in agreement with this finding.
Finding 2023-004 - Corrective Action Plan CHSD - 2022-2023 Audit Findings Finding 2023-004 – SPECIAL TESTS AND PROVISIONS (repeat comment) Type: Significant Deficiency in Internal Control / Noncompliance Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months’ operating expenses by approximately $157,881. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Corrective action to be taken: Over the 2023-2024 school year, the District will continue to leverage the excess fund balance to improve the quality of the food service program. Efforts to address the ongoing excess fund balance condition are ongoing and, while planning started in the 2022-2023 school year, an aggressive food service capital reinvestment project is scheduled to be completed in the 2023-2024 school year. This $220,000+ project will address equipment replacement and student service improvements in both the High School and the Middle School. The spend down associated with this project is anticipated to offset the excess fund balance on June 30, 2023, as noted in this finding. However, anticipating the potential for continued Food Service Program funding support at a state and federal level, the CHSD food service department will continue to monitor the fund balance with the goal of proactively managing any forecasted excess balance by continuing to offer more new food choices and improve the quality of the food served (including more fresh produce and better-quality ingredients). These improvements will continue to be in conjunction with the Michigan Department of Education's Office of School Support Services which will again approve the spending plan. The corrective action timeline is as follows: The corrective action is effective immediately and encompasses the ongoing efforts on the part of the District to comply with program criteria while balancing unpredictable statutory revenue streams against spending forecasts in the highly volatile food service market conditions. The District anticipates compliance with the Fund Balance condition set forth in the program by 6-30-2024. District Leader Responsible for Corrective Action Plan: The Food Service Administrator will be responsible for ensuring compliance with this corrective action. Respectfully submitted, Marc Forrest, Director of Finance
2022-002
FAC accepted this audit on October 31, 2022 — management decision was due May 1, 2023.
As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $129,204. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding. The district is now working on a spend down plan to enhance the Food Service Program.
Show full finding ▾Hide full finding ▴Finding 2022-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) Type: Material Weakness in Internal Control / Noncompliance ? Special Tests and Provisions Program: Child Nutrition Cluster (ALN 10.553, 10.555 and 10.559) Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $129,204. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by the meal claims increasing and having more reimbursements come in than anticipated. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding. The district is now working on a spend down plan to enhance the Food Service Program.
October 21, 2022 CORRECTIVE ACTION PLAN FINDING 2022-002 EXCESS FUND BALANCE IN FOOD SERVICE FUND (repeat comment) ? Material weakness in internal control/material noncompliance ? special tests and provisions. Over the 2022-2023 school year, the District will utilize the excess fund balance to improve the quality of the food service program. Despite following the spend down plan submitted to the Department of Education last year, the District still has a food service balance that exceeds the allowable balance by $129,204. The food service department will use the excess balance to continue to offer more new food choices, and continue to improve the quality of the food served (including more fresh produce and better quality ingredients). These improvements will continue to be in conjunction with the Michigan Department of Education's Office of School Support Services which will again approve the spending plan. We will begin to implement this immediately
2021-002
FAC accepted this audit on October 25, 2021 — management decision was due April 25, 2022.
Snacks claimed for November 2020 did not agree with supporting documentation of snacks served reports. Criteria: The District is required to claim meals served based on reports provided from the meal count system. Cause: This condition was caused by an insufficient process for review of claims to supporting documentation. Effect: Based on a comparison of meals claimed to meals served reports, the District has over claimed reimbursement by $29. Questioned Costs: None Recommendation: We recommend that the District review their process of meal claims reviews and make necessary changes to ensure that all meals claimed agree to supporting documentation. Management?s Resp: We are in agreement with this finding.
Show full finding ▾Hide full finding ▴Finding 2021-001 ? CASH MANAGEMENT (repeat comment) Type: Significant Deficiency in Internal Control over Compliance / Immaterial Noncompliance ? Cash Management Program: CFDA #10.555 Condition: Snacks claimed for November 2020 did not agree with supporting documentation of snacks served reports. Criteria: The District is required to claim meals served based on reports provided from the meal count system. Cause: This condition was caused by an insufficient process for review of claims to supporting documentation. Effect: Based on a comparison of meals claimed to meals served reports, the District has over claimed reimbursement by $29. Questioned Costs: None Recommendation: We recommend that the District review their process of meal claims reviews and make necessary changes to ensure that all meals claimed agree to supporting documentation. Management?s Resp: We are in agreement with this finding.
October 1, 2021 CORRECTIVE ACTION PLAN Finding 2021-001 ? CASH MANAGEMENT (repeat comment) ? Significant deficiency in internal control over compliance/immaterial noncompliance ? cash management Corrective action to be taken: Meal counts and snack counts entered into the Michigan Nutrition Data System will be verified against the totals in the District's meal accounting software (Meal Magic) and the production records/paper tally sheets. This step will be performed by two people independently ? the Food Service Director or Manager who will compare the meal/snack counts in Meal Magic against the paper tally sheets and production records, and the Director of Finance who will compare the count in Meal Magic to the counts entered for the claim. This will prevent accidental over-claims in the future. This process will be implemented immediately, starting with the August meal and snack claims.
2020-001
As of year-end, the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $112,826. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by a large increase in the reimbursable rate for meals combined with a large drop in expenditures. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding.
Show full finding ▾Hide full finding ▴Finding 2021-002 ? EXCESS FUND BALANCE IN FOOD SERVICE FUND Type: Material Weakness in Internal Control / Material Noncompliance ? Special Tests and Provisions Program: Child Nutrition Cluster (CFDA #10.555, and #10.559) Condition: As of year-end, the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $112,826. Criteria: The USDA requires that the District limit its net cash resources to an amount that does not exceed 3 months average expenditures of the non-profit food service fund per requirements in 7 CFR Part 210.14(b). Cause: This condition was caused by a large increase in the reimbursable rate for meals combined with a large drop in expenditures. Effect: The District will be required to develop a spending plan for reducing the balance to an acceptable level during the following school year. The plan must be submitted to MDE, Office of School Support Services, for prior approval. Recommendation: We recommend that the District develop a spending plan as required by MDE, and submit the plan at their earliest convenience. Management?s Resp: We are in agreement with this finding.
October 1, 2021 CORRECTIVE ACTION PLAN Finding 2021-002 ? EXCESS BALANCE IN FOOD SERVICE FUND ? Material weakness in internal control/material noncompliance ? special tests and provisions Corrective action to be taken: Over the 2021-2022 school year, the District will utilize the excess fund balance to improve the quality of the food service program. The food service manager has been tasked with improving food choices and food quality. Specifically, he will be increasing the quality of what we are currently serving, incorporating more local produce, and introducing new meals to the menu. All of this will be in conjunction with the Michigan Department of Education's Office of School Support Services which will approve the spending plan. This will begin to be implemented in October of 2021.
FAC accepted this audit on November 4, 2020 — management decision was due May 4, 2021.
Meals claimed for one week in April 2020 did not agree with supporting documentation of meals served reports. Criteria: The District is required to claim meals served based on reports provided from the meal count system. Cause: This condition was caused by an insufficient process for review of claims to supporting documentation. Effect: Based on a comparison of meals claimed to meals served reports, the District has over claimed reimbursement by $45,921. Questioned Costs: $45,921 Recommendation: We recommend that the District review their process of meal claims reviews and make necessary changes to ensure that all meals claimed agree to supporting documentation. Management?s Resp: We are in agreement with this finding.
Show full finding ▾Hide full finding ▴Finding 2020-001 ? CASH MANAGEMENT Type: Significant Deficiency in Internal Control over Compliance / Immaterial Noncompliance Program: CFDA #10.553 and #10.555 Condition: Meals claimed for one week in April 2020 did not agree with supporting documentation of meals served reports. Criteria: The District is required to claim meals served based on reports provided from the meal count system. Cause: This condition was caused by an insufficient process for review of claims to supporting documentation. Effect: Based on a comparison of meals claimed to meals served reports, the District has over claimed reimbursement by $45,921. Questioned Costs: $45,921 Recommendation: We recommend that the District review their process of meal claims reviews and make necessary changes to ensure that all meals claimed agree to supporting documentation. Management?s Resp: We are in agreement with this finding.
November 3, 2020 CORRECTIVE ACTION PLAN Finding 2020-001 - CASH MANAGEMENT: Significant deficiency in internal control over compliance/immaterial noncompliance - meal counts Corrective action to be taken: Meal counts entered into the Michigan Nutrition Data System will be verified against both the totals in the District's meal accounting software (Meal Magic) and the paper tally sheets (during Summer Feeding and the Extended Summer Feeding Program). Checking the three totals against each other will prevent accidental over-claims in the future. This will be implemented immediately, beginning with the September meal claim. The Food Service Director will be responsible for entering information into the meal accounting software and gathering the paper tally sheets. The Director of Finance will be responsible for checking all three balances against each other and verifying the meal counts.
FAC accepted this audit on October 15, 2019 — management decision was due April 15, 2020.
FAC accepted this audit on October 18, 2018 — management decision was due April 18, 2019.
FAC accepted this audit on October 23, 2017 — management decision was due April 23, 2018.
FAC accepted this audit on October 30, 2016 — management decision was due April 30, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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