EIN: 386002106
UEI: MMB1QWFQ41M5
Audited by: MANER COSTERISAN
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 4, 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 4, 2026 (92 days ago).
What is a management decision? →FAC accepted this audit on October 28, 2024 — management decision was due April 28, 2025.
FAC accepted this audit on November 3, 2023 — management decision was due May 3, 2024.
FAC accepted this audit on October 31, 2022 — management decision was due May 1, 2023.
Kent City Community Schools currently has more than the allowable fund balance in the non-profit 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 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Questioned Costs: None. Cause: The District participated in seamless summer option meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. 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 ▴Finding 2022-003: Significant Deficiency - Excess Fund Balance Federal Program: Child Nutrition Cluster CFDA #: 10.553, 10.555, and 10.559 Federal Agency: U.S. Department of Agriculture Pass-through entity: Michigan Department of Education Pass-through number: 211961, 220910, 221961, 211971, 221971, 210904 Criteria: The District?s fund balance in the food service fund is required to be less than three months of food service expenditures. Condition: Kent City Community Schools currently has more than the allowable fund balance in the non-profit 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 2022-2023 school year. The plan must be submitted to the Michigan Department of Education prior to implementation. Excess fund cannot be transferred to the general fund. Questioned Costs: None. Cause: The District participated in seamless summer option meal reimbursements from July through June causing a larger than normal increase in the food service fund balance. Effect: At June 30, 2022, the District?s food service fund balance was greater than three months of expenditures. Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. District?s Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.
Finding 2022-003: Significant Deficiency - Excess Fund Balance Recommendation: The District should implement a budget, as well as the required corrective action plan, for the 2022-2023 school year that will adequately reduce the food service fund balance. Action to be taken: Management agrees with the finding and we are in the process of developing a spend down plan. We are looking at expanding food choices, expanding healthy food options, as well as needed upgrades to equipment. District Contact Person: Bill Crane, Superintendent. Date of Completion: June 30, 2023.
FAC accepted this audit on December 19, 2021 — management decision was due June 19, 2022.
Account reconciliations were not performed on a timely basis during the course of the fiscal year for certain balance sheet accounts, for all funds. Material audit adjustments were proposed by the external auditor and accepted and recorded by the client where needed to reconcile the accounts. Criteria: In order to maintain adequate internal controls and proper reporting, all accounts should be reconciled and adjusted monthly (especially the balance sheet accounts). The reconciliations should be completed and reviewed on a timely basis. Cause: Individuals responsible for reconciling and reviewing monthly activity did not complete their procedures. Effect: Without completing and reviewing the reconciliations in a timely manner, inaccurate financial information may be used for management decisions and reporting. Context: Cash, and other balance sheet accounts, were not reconciled on a timely basis throughout the fiscal year. This led to significant audit journal entries, necessary to adjust related accounts to the correct balances at June 30, 2021. In addition, multiple audit entries were needed to properly reflect accrual accounting principles. Recommendation: The District should implement a month end procedure checklist to ensure at all balance sheet accounts are reconciled within 30 days of month end. District?s Response: The District agrees with the finding and will continue to establish procedures for monthly reconciliations.
Show full finding ▾Hide full finding ▴2021-001 Repeat of 2020-001 Material Weakness in Internal Controls over Financial Reporting Condition: Account reconciliations were not performed on a timely basis during the course of the fiscal year for certain balance sheet accounts, for all funds. Material audit adjustments were proposed by the external auditor and accepted and recorded by the client where needed to reconcile the accounts. Criteria: In order to maintain adequate internal controls and proper reporting, all accounts should be reconciled and adjusted monthly (especially the balance sheet accounts). The reconciliations should be completed and reviewed on a timely basis. Cause: Individuals responsible for reconciling and reviewing monthly activity did not complete their procedures. Effect: Without completing and reviewing the reconciliations in a timely manner, inaccurate financial information may be used for management decisions and reporting. Context: Cash, and other balance sheet accounts, were not reconciled on a timely basis throughout the fiscal year. This led to significant audit journal entries, necessary to adjust related accounts to the correct balances at June 30, 2021. In addition, multiple audit entries were needed to properly reflect accrual accounting principles. Recommendation: The District should implement a month end procedure checklist to ensure at all balance sheet accounts are reconciled within 30 days of month end. District?s Response: The District agrees with the finding and will continue to establish procedures for monthly reconciliations.
A certain matter was brought to our attention as a result of the audit process. This is described in the Schedule of Findings and Questioned Costs. We have evaluated this matter as described below and have described our planned action as a result. Material Internal Control Deficiency Finding: 2021-001 ? Material Weakness in Internal Controls over Financial Reporting Planned Corrective Action. District will implement a month end procedure checklist to ensure that all balance sheet accounts are reconciled within 30 days of month end. Part 1 ? Development of Month End Procedure checklist: A third party company was hired to work with our business office on month end procedures. The company has many years of experience working in a school business office. The third-party company will create a checklist and communicate with all business office employees about month end procedures. All month end procedures will be clearly defined and organized the third-party company. This checklist will be used to ensure that all necessary tasks are completed in a timely matter and reviewed for accuracy. Part 2 ? Monthly Reconciliation of Balance Sheet: All balance sheet accounts will be reconciled by a third-party company within 30 days of month end. The third-party company will ensure accurate information is available for management decision making and reporting. Responsible Party: Bill Crane, Assistant Superintendent Planned Completion Date: Part 1 - Ongoing, Part 2 - Monthly Management Assessment: The district agrees with this finding and does not wish to dispute it.
2020-001
The District did not maintain adequate support documentation to substantiate salaries and wages charged to the Special Education Cluster resulting in periods of ineffective or absent controls. Criteria: 2 CFR 200.430(i) requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Among other requirements identified in this section, these records must (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and (v) comply with the established accounting policies and practices of the District. Cause: The District did not have clearly defined written procedures related to time and effort reporting. Effect: The District is unable to adequately support the accuracy of all payroll expenditures charged to the grant. Questioned Costs: $25,833 Context: Semi-annual time certifications, the District?s method of documenting support staff salaries and wages charged to the grant, were not prepared and approved for the audit period under review. No alternative method was utilized to support that charges were accurate, allowable, or properly allocated. Recommendation: We recommend that the District clarify and adhere to documented time and effort reporting procedures and maintain effective internal controls that ensure salaries and wages allocated to the Special Education Cluster are based on records that accurately reflect the work performed. District?s Response: The District agrees with the finding and will continue to establish effective controls to ensure time and effort reporting is consistent with District policies, and that all charges to the grant are adequately supported.
Show full finding ▾Hide full finding ▴2021-002 Unallowed/Allowable Cost Principles ? Time and Effort Reporting Finding Type: Material weakness in internal control over compliance and noncompliance with laws and regulations. Program(s) Impacted: Special Education Cluster - 84.027 I.D.E.A. Flowthrough; 84.173 I.D.E.A Preschool Condition: The District did not maintain adequate support documentation to substantiate salaries and wages charged to the Special Education Cluster resulting in periods of ineffective or absent controls. Criteria: 2 CFR 200.430(i) requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Among other requirements identified in this section, these records must (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and (v) comply with the established accounting policies and practices of the District. Cause: The District did not have clearly defined written procedures related to time and effort reporting. Effect: The District is unable to adequately support the accuracy of all payroll expenditures charged to the grant. Questioned Costs: $25,833 Context: Semi-annual time certifications, the District?s method of documenting support staff salaries and wages charged to the grant, were not prepared and approved for the audit period under review. No alternative method was utilized to support that charges were accurate, allowable, or properly allocated. Recommendation: We recommend that the District clarify and adhere to documented time and effort reporting procedures and maintain effective internal controls that ensure salaries and wages allocated to the Special Education Cluster are based on records that accurately reflect the work performed. District?s Response: The District agrees with the finding and will continue to establish effective controls to ensure time and effort reporting is consistent with District policies, and that all charges to the grant are adequately supported.
A certain matter was brought to our attention as a result of the audit process. This is described in the Schedule of Findings and Questioned Costs. We have evaluated this matter as described below and have described our planned action as a result. Major Federal Award Programs Finding: 2021-002 ? Unallowed/Allowable Cost Principles ? Time and Effort Reporting Planned Corrective Action. District will implement internal controls to maintain adequate support documentation to substantiate salaries and wages charged to the special education IDEA flowthrough. Part 1 ? Development of internal controls. The business office specialist will calculate the monthly costs for salary and benefits of all special education employees who were selected to be part of the IDEA flowthrough. The calculation sheet will be sent to the assistant superintendent for review. When the calculation sheet has been approved by the assistant superintendent the business office specialist will request the correct amount for the IDEA flowthrough. Part 2 ? Semi-annual time certifications will be completed twice per year by employees that are compensated with any required federal grant funds. Responsible Party: Bill Crane, Assistant Superintendent Planned Completion Date: Part 1 ? Monthly. Part 2 ? Twice per year. Management Assessment: The district agrees with this finding and does not wish to dispute it.
FAC accepted this audit on January 3, 2021 — management decision was due July 3, 2021.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
The District did not maintain adequate support documentation to substantiate salaries and wages charged to the Special Education Cluster resulting in periods of ineffective or absent controls. Cause: The District did not have clearly defined written procedures related to time and effort reporting. Effect: The District is unable to support the accuracy of all expenditures charged to the grant. Questioned Costs: $33,480 Context: Semi-annual time certifications, the District?s method of documenting support staff salaries and wages charged to the grant, were not prepared and approved for the audit period under review. No alternative method was utilized to support that charges were accurate, allowable, or properly allocated. Recommendation: We recommend that the District clarify and adhere to documented time and effort reporting procedures, and maintain effective internal controls that ensure salaries and wages allocated to the Special Education Cluster are based on records that accurately reflect the work performed. View of Responsible Officials: The District agrees with the finding and will establish effective controls to ensure time and effort reporting is consistent with District policies, and that all charges to the grant are adequately supported.
Show full finding ▾Hide full finding ▴2019-002 Unallowed/Allowable Cost Principles ? Time and Effort Reporting Finding Type: Material weakness in internal control over compliance and noncompliance with laws and regulations. Program(s) Impacted: Special Education Cluster - 84.027 I.D.E.A. Flowthrough; 84.173 I.D.E.A Preschool Criteria: 2 CFR 200.430(i) requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Among other requirements identified in this section, these records must (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and (v) comply with the established accounting policies and practices of the District. Condition: The District did not maintain adequate support documentation to substantiate salaries and wages charged to the Special Education Cluster resulting in periods of ineffective or absent controls. Cause: The District did not have clearly defined written procedures related to time and effort reporting. Effect: The District is unable to support the accuracy of all expenditures charged to the grant. Questioned Costs: $33,480 Context: Semi-annual time certifications, the District?s method of documenting support staff salaries and wages charged to the grant, were not prepared and approved for the audit period under review. No alternative method was utilized to support that charges were accurate, allowable, or properly allocated. Recommendation: We recommend that the District clarify and adhere to documented time and effort reporting procedures, and maintain effective internal controls that ensure salaries and wages allocated to the Special Education Cluster are based on records that accurately reflect the work performed. View of Responsible Officials: The District agrees with the finding and will establish effective controls to ensure time and effort reporting is consistent with District policies, and that all charges to the grant are adequately supported.
2019-002 Time and Effort Reporting: Semi-annual time certifications or an acceptable support will be utilized to support salaries and wages charged to grants. These records will be collected for each semester and filed for review. Ongoing ? Effective September 1, 2019 Grants: All grant expenditures will be verified/approved by the Finance Director. Grants will be reconciled on a monthly basis to ensure proper coding and budget adherence. Daily - Effective Immediately.
FAC accepted this audit on November 5, 2018 — management decision was due May 5, 2019.
FAC accepted this audit on October 31, 2017 — management decision was due May 1, 2018.
FAC accepted this audit on October 31, 2016 — management decision was due May 1, 2017.
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