BAY CITY PUBLIC SCHOOLS

Program - Title I Part A - Improving Basic Programs. ALN # 84.010. Federal register P.L. 114-95, Section 1120A(c) requires school districts to determine comparability by comparing the instructional staff/pupil ratios or the per-pupil expenditures for instruction staff between equivalent grade span schools within the district. Criteria/Condition - The School District did not complete and submit the comparability worksheet for the 2022/2023 fiscal year. Questioned costs - None. Context - The School District did not properly complete and submit the comparability worksheet timely. Effect - The School District should complete comparability calculations timely so that there will be time allowed for review and make revisions to allocate resources to bring schools into comparability. Cause - The School District had turn-over in key grant positions during the fiscal year. Recommendation - We recommend that the School District put controls in place to make sure comparability is timely calculated and submitted. Views of the Responsible Officials and Planned Corrective Action - The Offices of Finance, State and Federal Programs, and Human Resources will meet regularly to ensure the proper alignment of programs, financial records, and the REP. Before the submission of the REP and on an ongoing basis, the team will work collaboratively to ensure compliance with comparability requirements. Upon official notification of the availability of the comparability worksheet from the Michigan Department of Education, the necessary documents will be promptly filed. Key personnel and processes have been identified to ensure sustained compliance moving forward.

Program - Title I Part A - Improving Basic Programs. ALN # 84.010. Federal register section 2 CFR Part 200.130 requires school districts to maintain adequate records for all individuals working on Title I. Criteria - The School District is required to maintain records that track the individuals time spent working on Title I unless they have a single cost objective. Condition - The School District did not properly maintain records, either semi annual certifications or personal activity reports (PARs), for all individuals that had time/salaries spent working in Title I. Questioned costs - None Context - Management is required to make sure all individuals charged to a federal grant have adequate records maintained. Effect - The School District did not properly maintain records, either semi annual certifications or personal activity reports (PARs), for all individuals that had time/salaries spent working in Title I. Cause - Management did not maintain adequate records for the auditor to verify proper time keeping for individuals charged to the Title I grant. Recommendation - We recommend that the School District put controls in place to make sure all individuals charged to the grant have either a semi annual certifications, personal activity reports (PARs), or suitable replacement completed. Views of the Responsible Officials and Planned Corrective Action - The Office of Teaching Learning and Technology is aware of the requirements of time tracking for grant purposes. The Director in conjunction with Finance has identified staff and updated the processes to ensure that all staff that are grant funded provide semi-annual certifications or personal activity reports (PARs) for the three primary pay periods – Fall Semester, Winter Semester and Summer Learning.

Program - Child Nutrition Cluster - National School Breakfast and National School Lunch, U.S. Department of Agriculture, passed through Michigan Department of Education. ALN # 10.553, 10.555, 10.559 and 10.582. Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Criteria - The School District's net cash resources exceeded three months of average expenditures at June 30, 2022. Condition - The School District did not meet the three months of average expenditure test at June 30, 2022. Questioned costs - None. Context - Management is required to monitor net cash resources and their spend down plan to ensure that they do not exceed three months of average expenditures. Effect - The School District's net cash resources were in excess of three months over expenditures by $69,369. Cause - Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. Recommendation - We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District work on creating a spend down plan with Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget.

Program Nutrition Cluster - National School Breakfast, National School Lunch, U.S. Department of Agriculture, Summer Food Service Program, passed through Michigan Department of Education. CFDA # 10.553, 10.555 and 10.559. Criteria Federal register section 7 CFR Part 210.14b requires School Districts to limit its School Breakfast and Lunch fund net resources to an amount that does not exceed three months of average expenditures. Condition The School District's net cash resources exceeded three months of average expenditures at June 30, 2019. Questioned costs None Context The School District did not meet the three months of average expenditures test at June 30, 2019. Effect Management did not monitor net cash resources and their spend down plan to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $327,713. Cause Management did not monitor net cash resources to ensure that they did not exceed three months of average expenditures. The School District's net cash resources were in excess of three months over expenditures by $327,713. Recommendation We recommend that the School District review their Food Service Fund's net cash resources periodically throughout the school year to ensure that the fund will not have an excess of three months of average expenditures at the fiscal year end and that the School District develop a spend down plan with the Michigan Department of Education. The School District should also take this requirement into consideration when preparing the annual budget and any subsequent adjustments to the budget. Views of the Responsible Officials and Planned Corrective Action Nutrition services is aware of the excess funds and will be filing a spend down plan with Michigan Department of Education as soon as officially notified. The Director in conjunction with Maintenance and Finance has identified necessary improvements to equipment and has formulated a plan to substantially spend the excess funds within the next fiscal year pending approval from the State.

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