EIN: 386001179
UEI: CF3QTEPZGZ41
Audited by: Hungerford
Oversight agency: 10 [Department of Agriculture]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 29, 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 29, 2026 (64 days ago).
What is a management decision? →FAC accepted this audit on October 22, 2024 — management decision was due April 22, 2025.
FAC accepted this audit on December 12, 2023 — management decision was due June 12, 2024.
FAC accepted this audit on January 13, 2023 — management decision was due July 13, 2023.
FAC accepted this audit on October 31, 2021 — management decision was due May 1, 2022.
FAC accepted this audit on November 16, 2020 — management decision was due May 16, 2021.
2020-001 ? Program Income - Food Service Fund Balance Finding Type. Immaterial Noncompliance Federal program(s) U.S. Department of Agriculture: "Child Nutrition Cluster (CFDA# 10.553, 10.555 and 10.559); Passed through MDE; All project numbers" Criteria. The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition. In our review of the District's food service fund balance, we noted that the District's fund balance exceeded three months' average of operating expenses. Cause. This condition appears to be the result of the District's increased food service revenue and conservative budgeting of expenditures by management. Effect. As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. Recommendation. We recommend the District review its budgeting of expenditures for the food service fund to ensure that fund balance is reduced to an appropriate level. View of Responsible Officials. On March 13th, the State of Michigan closed all public school buildings due to COVID-19. Because of the early shutdown, the Public Schools of Petoskey experienced less operational costs, but consistent revenues due to the COVID-19 SFSP (Unanticipated Grant Payments). These factors greatly impacted the Food Service fund balance to the level of noncompliance with USDA fund balance requirements. The District will assess the operational needs of the Food Service program and purchase equipment or supplies that are needed in the program. The District will analyze the quantity and quality of food distributed to students to ensure nutritional guidelines set forth by the Michigan Department of Education are met. Finally, the District will assess student meal charges to ensure that the District is not overcharging based on the Michigan Department of Education?s meal pricing guidelines. These combined efforts will put the District into compliance with the fund balance requirements of the USDA. Responsible Official. Director of Finance Estimated Completion Date. June 30, 2022
Show full finding ▾Hide full finding ▴2020-001 ? Program Income - Food Service Fund Balance Finding Type. Immaterial Noncompliance Federal program(s) U.S. Department of Agriculture: "Child Nutrition Cluster (CFDA# 10.553, 10.555 and 10.559); Passed through MDE; All project numbers" Criteria. The USDA requires that the ending balance of the non-profit school food service fund does not exceed three months? average of operating expenses [7 CFR Part 210.14(b)]. Condition. In our review of the District's food service fund balance, we noted that the District's fund balance exceeded three months' average of operating expenses. Cause. This condition appears to be the result of the District's increased food service revenue and conservative budgeting of expenditures by management. Effect. As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs. No costs have been questioned as a result of this finding inasmuch as no disallowed costs were identified. Recommendation. We recommend the District review its budgeting of expenditures for the food service fund to ensure that fund balance is reduced to an appropriate level. View of Responsible Officials. On March 13th, the State of Michigan closed all public school buildings due to COVID-19. Because of the early shutdown, the Public Schools of Petoskey experienced less operational costs, but consistent revenues due to the COVID-19 SFSP (Unanticipated Grant Payments). These factors greatly impacted the Food Service fund balance to the level of noncompliance with USDA fund balance requirements. The District will assess the operational needs of the Food Service program and purchase equipment or supplies that are needed in the program. The District will analyze the quantity and quality of food distributed to students to ensure nutritional guidelines set forth by the Michigan Department of Education are met. Finally, the District will assess student meal charges to ensure that the District is not overcharging based on the Michigan Department of Education?s meal pricing guidelines. These combined efforts will put the District into compliance with the fund balance requirements of the USDA. Responsible Official. Director of Finance Estimated Completion Date. June 30, 2022
Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following are the findings as noted in the Public Schools of Petoskey?s Single Audit report for the year ended June 30, 2020, and corrective actions to be completed. Finding: 2020-001 ? Program Income - Food Service Fund Balance Auditor Description of Condition and Effect: In our review of the District's food service fund balance, we noted that the District's fund balance exceeded three months' average of operating expenses. As a result of this condition, the District did not fully comply with USDA fund balance requirements. Auditor Recommendation: We recommend the District review its budgeting of expenditures for the food service fund to ensure that fund balance is reduced to an appropriate level. Corrective Action: On March 13th, the State of Michigan closed all public school buildings due to COVID-19. Because of the early shutdown, the Public Schools of Petoskey experienced less operational costs, but consistent revenues due to the COVID-19 SFSP (Unanticipated Grant Payments). These factors greatly impacted the Food Service fund balance to the level of noncompliance with USDA fund balance requirements. The District will assess the operational needs of the Food Service program and purchase equipment or supplies that are needed in the program. The District will analyze the quantity and quality of food distributed to students to ensure nutritional guidelines set forth by the Michigan Department of Education are met. Finally, the District will assess student meal charges to ensure that the District is not overcharging based on the Michigan Department of Education?s meal pricing guidelines. These combined efforts will put the District into compliance with the fund balance requirements of the USDA. Responsible Person: Director of Finance Anticipated Completion Date: June 30, 2022
FAC accepted this audit on October 28, 2019 — management decision was due April 28, 2020.
FAC accepted this audit on October 25, 2018 — management decision was due April 25, 2019.
FAC accepted this audit on October 22, 2017 — management decision was due April 22, 2018.
FAC accepted this audit on October 23, 2016 — management decision was due April 23, 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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