Kalkaska Public Schools

Assistance Listing Number, Federal Agency, and Program Name - Child Nutrition Cluster - 10.555: National School Lunch Program and 10.553: National School Breakfast Program and 10.559: Summer Food Service Program Federal Award Identification Number and Year - National School Lunch Program: 251960, 251980, 241960 and 241980; National School Breakfast Program: 251970 and 241970; Summer Food Service Program: 250900 and 240900 Pass-through Entity - Michigan Department of Education Finding Type – Significant Deficiency in Internal Control, Immaterial Noncompliance Repeat Finding - No Criteria - In accordance with OMB requirements, the District can only request funds for meal reimbursements based on total meals served, no more or no less. Condition - The School District did not maintain effective internal controls over the school nutrition program to ensure the accuracy of meals served, as reported on monthly claims for reimbursement. Questioned Costs - None. Identification of How Questioned Costs Were Computed - Not applicable. The finding is related to a lack of monitoring controls and not tied to any known questioned costs. Context - The School District did not claim the correct amount of meals when filing for meal reimbursements under the school nutrition program. All months were later reviewed and corrected monthly claims for reimbursement were submitted. The updated claim amounts are reflected in the financial statements. Cause and Effect - The District failed to have controls in place that would prevent, detect, or correct an incorrect monthly meal claim. The District’s internal controls over compliance were found to be ineffective which caused instances of immaterial noncompliance. Recommendation - The District should begin reconciling meals served prior to requesting reimbursements for said meals. Views of Responsible Officials and Corrective Action Plan - Going forward, the food service director will coordinate a check procedure to review monthly meal counts before submitting reimbursement from Michigan Department of Education.

Assistance Listing Number, Federal Agency, and Program Name - Child Nutrition Cluster - 10.555: National School Lunch Program and 10.553: National School Breakfast Program and 10.559: Summer Food Service Program Federal Award Identification Number and Year - National School Lunch Program: 231960, 231980, 241960, 241980 and 240910-2024; National School Breakfast Program: 231970 and 241970; Summer Food Service Program: 230900 and 240900 Pass-through Entity - Michigan Department of Education Finding Type – Significant Deficiency in Internal Control, Immaterial Noncompliance Repeat Finding - No Criteria - To monitor the National School Breakfast and National School Lunch programs, the Michigan Department of Education, the pass-through agency, requires annual program on-site monitoring reviews to be completed internally by school districts. All buildings operating school lunch programs must have one on-site monitoring reviews completed by February 1. In addition, 50 percent of buildings operating school breakfast programs must also be reviewed annually by February 1. The following year, the other 50 percent of buildings operating school breakfast programs must be reviewed. On-site monitoring reviews are also required for afterschool snack program, one review per building must be completed two times per school year, the first review must be completed within the first four weeks of the school year, and the second review in the second half of the school year. Condition - The School District did not complete any afterschool snack program on-site monitoring reviews for all buildings operating afterschool snack programs within the School District during the year ended June 30, 2024. Questioned Costs - None. Identification of How Questioned Costs Were Computed - Not applicable. The finding is related to a lack of monitoring controls and not tied to any known questioned costs. Context - No on-site monitoring review of afterschool snack programs were completed by the School District during the year ended June 30, 2024. Cause and Effect - Due to management oversight, the School District did not complete snack required annual on-site monitoring reviews, and, therefore, is not compliant with Michigan Department of Education requirements. Recommendation - We recommend the School District implement a process to perform required on-site monitoring reviews following Michigan Department of Education guidelines. Views of Responsible Officials and Corrective Action Plan - Going forward, the food service director will coordinate the on-site monitoring reviews and its completion to Michigan Department of Education standards and make sure the required forms are completed before deadlines.

2021-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number(s): 10.555 & 10.559 Federal Award Number: 200900 & 210904 (COVID-19) Federal Award Year: July 1, 2020 to June 30, 2021 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Immaterial Noncompliance (Special Test & Provisions) 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: As of June 30, 2021, the District?s fund balance exceeded three months? average of operating expenses. Cause: This condition appears to be the result of additional revenues received from the summer food service program. Effect: As a result of this condition, the District did not fully comply with USDA fund balance requirements. Questioned Costs: None Perspective Information: The District?s fund equity of $451,653 at fiscal year-end exceeded the allowable three months of expenditures threshold by $145,773. Recommendations: We recommend the District closely monitor its budget for the year ended June 30, 2022 to ensure that fund balance is reduced to an appropriate level. Views of Responsible Officials: The Business Manager has a spend down plan in place and is working on purchasing capital outlay and equipment for all of the kitchens. The District expects these updates to reduce the fund balance within the food service fund to an appropriate level for the year ending June 30, 2022.

2020-001 U.S. DEPARTMENT OF AGRICULTURE Program Title: Child Nutrition Cluster CFDA Number: 10.553, 10.555 & 10.559 Federal Award Number: 201960, 201980, 191960, 191980, 200902, 201970, 191970, 190900, 191900, & Entitlement Commodities Federal Award Year: July 1, 2019 to September 30, 2020 Pass-Through Entity: Passed-Through Michigan Department of Education Type of Compliance: Significant Deficiency in Internal Control Over Compliance and Immaterial Noncompliance (Special Tests and Provisions) Criteria: The District is required to perform an on-site review for each building before February 1. As part of that requirement, the District is required to perform one general area review for the School Food Authority, one lunch review per building, and 50% of buildings operating school breakfast programs. Condition: The District did not perform the required on-site review for three of the five schools in the School Food Authority. Cause: The District failed to have controls in place that would prevent, detect, or correct the District failing to perform the required on-site review for each school in the School Food Authority. Effect: The District?s internal controls over compliance were found to be ineffective which caused instances of immaterial noncompliance. Questioned Costs: None Perspective Information: The finding represents an isolated problem based on the Food Service Director being in her first full year in the position. Identification of Repeat Findings: None Recommendations: The District should increase its detection or correction controls by having someone other than the Food Service Coordinator review the on-site review to ensure all necessary reviews have been completed. Views of Responsible Officials: Per discussion with Jenny Patton, Food Service Coordinator, and Jeff Scroggins, Business Manager, on September 25, 2020, the District is implementing additional procedures to ensure that the same problem is not repeated in the future.

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