EIN: 386001680
UEI: S25LF5LHVFV8
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on November 20, 2022. 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 May 20, 2023 (1190 days ago).
What is a management decision? →Saranac Community Schools currently has more than the allowable fund balance in the nonprofit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund balance cannot be transferred to the general fund. Effect: At June 30, 2022 the District?s food service fund balance was greater than three months of expenditures. Cause: An increase in federal revenues from meal reimbursements caused a significant increase in fund balance. The District did not complete the planned equipment replacement and purchases. Recommendation: The District should monitor revenues more closely and adjust food service program to match revenues. Management should complete the planned expenditures needed to maintain acceptable fund balance. A spend-down plan should be developed and followed to reduce fund balance below acceptable levels. District?s response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Show full finding ▾Hide full finding ▴Findings--Financial Statement Audit Finding 2022-001 Considered a significant deficiency (repeat finding) Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Saranac Community Schools currently has more than the allowable fund balance in the nonprofit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during the 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund balance cannot be transferred to the general fund. Effect: At June 30, 2022 the District?s food service fund balance was greater than three months of expenditures. Cause: An increase in federal revenues from meal reimbursements caused a significant increase in fund balance. The District did not complete the planned equipment replacement and purchases. Recommendation: The District should monitor revenues more closely and adjust food service program to match revenues. Management should complete the planned expenditures needed to maintain acceptable fund balance. A spend-down plan should be developed and followed to reduce fund balance below acceptable levels. District?s response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Saranac Community Schools Corrective Action Plan For the Year Ended June 30, 2022 Saranac Community Schools respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit Period: June 30, 2022 District responsible individual to implement this plan: Jammie Sprank, Finance Director The findings from the June 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Finding: Financial statement audit Finding 2022-001 ? Significant Deficiency Recommendation: The District should monitor revenues more closely and adjust food service program to match revenues. Management should complete the planned expenditures needed to maintain acceptable fund balance. A spend-down plan should be developed and followed to reduce fund balance below acceptable levels. Planned Corrective Action: Management agrees with the finding and we are in the process of developing a spend down plan. The spend down plan will include completion of the fixed asset purchases and other upgrades to equipment. Management is looking at changing food choices including increasing healthy food options as a means of matching expenditures with revenues. Planned Completion Date: The District's spend down plan is anticipated to be completed by June 30, 2023. Kitchen equipment availability is severely limited due to national supply chain delays. The installation of some equipment may be limited to times when school is not in session. Due to this the District may not complete the spend spend down by June 30, 2023.
2021-001
FAC accepted this audit on November 16, 2021 — management decision was due May 16, 2022.
Saranac Community Schools currently has more than the allowable fund balance in the nonprofit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2021-2022 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund balance cannot be transferred to the general fund. Effect: At June 30, 2021 the District?s food service fund balance was greater than three months of expenditures. Cause: A sharp increase in federal revenues from meal reimbursements caused an unexpected increased fund balance. The District also anticipated capital asset purchases for the food service program. Supply chain restrictions due to COVID-19 did not allow the receipt of the assets by June 30, 2021, so anticipated expenditures were not recognizable in the food service fund. Recommendation: The District should monitor revenues more closely and adjust food service program to match revenues. The District should continue to evaluate and consult with suppliers concerning supply of fixed assets so purchases can be finalized within the fiscal year. A spend-down plan should be developed to reduce fund balance below acceptable levels. District?s response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future
Show full finding ▾Hide full finding ▴Findings--Financial Statement Audit Finding 2021-001 Considered a significant deficiency Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Saranac Community Schools currently has more than the allowable fund balance in the nonprofit food service fund. As a result, the District will be required to develop a spending plan to reduce the balance to an acceptable level during 2021-2022 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund balance cannot be transferred to the general fund. Effect: At June 30, 2021 the District?s food service fund balance was greater than three months of expenditures. Cause: A sharp increase in federal revenues from meal reimbursements caused an unexpected increased fund balance. The District also anticipated capital asset purchases for the food service program. Supply chain restrictions due to COVID-19 did not allow the receipt of the assets by June 30, 2021, so anticipated expenditures were not recognizable in the food service fund. Recommendation: The District should monitor revenues more closely and adjust food service program to match revenues. The District should continue to evaluate and consult with suppliers concerning supply of fixed assets so purchases can be finalized within the fiscal year. A spend-down plan should be developed to reduce fund balance below acceptable levels. District?s response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future
Saranac Community Schools Corrective Action Plan For the Year Ended June 30, 2021 Saranac Community Schools respectfully submits the following corrective action plan for the year ended June 30, 2021. Audit Period: June 30, 2021 District responsible individual to implement this plan: Jammie Sprank, Finance Director The findings from the June 30, 2021 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Finding: Financial statement audit Finding 2021-001 ? Significant Deficiency Recommendation: The District should monitor revenues more closely and adjust food service program to match revenues. The District should continue to evaluate and consult with suppliers concerning supply of fixed asset so purchases can be finalized within the fiscal year. A spenddown plan should be developed to reduce fund balance below acceptable levels. Planned Corrective Action: Management agrees with the finding and we are in the process of developing a spend down plan. The spend down plan will include completion of the fixed asset purchases and other upgrades to equipment. Management is looking at changing food choices including increasing healthy food options as a means of matching expenditures with revenues. Planned Completion Date: March 31, 2022
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