Bullock Creek School District

October 24, 2023 Finding Number: 2023-002 – Significant Deficiency in Internal Control / Noncompliance – On-Site Reviews Condition: An on-site review was not completed for all sites in which lunches were served. Responsible Person: Kim Gagne – Director of Food Service Implementation Date: 10-24-2023 On-site reviews for Lunch and Breakfast are mapped out on the calendar to have completed by Kim Gagne before the due date of Feb 1st, for all 5 schools. This time line will give the time to make sure deficiencies are addressed and corrected. Sincerely, Stephen Grubaugh Director of Business Services

October 24, 2023 Finding Number: 2023-003 – Significant Deficiency in Internal Control – Eligibility Condition: Of the 22 applications for reduced meals that were selected for testing, 3 did not document evidence of review by staff. Responsible Person: Kim Gagne – Director of Food Service Implementation Date: 10-24-2023 This year we have a 2-person checking system, Kim Gagne initially completes the applications with a signature and Jody King double checks every application for errors and oversites and adds her signature also. Both have been through the MDE training on the applications and the required information they need. Sincerely, Stephen Grubaugh Director of Business Services

October 24, 2023 Finding Number: 2023-004 – Material weakness in Internal Control – Reporting (Repeat Finding) Condition: In six of the eleven months tested, the number of meals included on the reimbursement claim reports were not supported by the District’s internal count sheets. Responsible Person: Kim Gagne – Director of Food Service Implementation Date: 10-24-2023 This year we have partnered with Meal Magic, for reporting claims. Every student must enter an identification number or scan an ID card so that students cannot be missed or over-claimed. The Direct Certification students are compared monthly against the state information provided to make sure students are claimed at the correct rate. Sincerely, Stephen Grubaugh Director of Business Service

2022-002

October 22, 2022 Finding Number: 2022-001 ? Excess Fund Balance In Food Service Fund Condition: As of year-end the District had a fund balance in the non-profit food service fund in excess of three months? operating expenses by approximately $85,951. Responsible Person: Stephen Grubaugh ? Director of Business Services Implementation Date: 7/1/2022 During the single audit, it was discovered that Bullock Creek Food Service Department had an excess fund balance in the Food Service Fund by approximately $85,951. This was due to the meal reimbursement rate exceeding the food cost to prepare the meals. All meals served to students during the 2021-2022 school year were provided free of charge to the students, due to grants. In order to reduce the excess fund balance, the district created a spend down plan for the 2022-2023 Fiscal Year. The kitchen at Bullock Creek Elementary needs some structural repairs completed due to faulty roof drainage. The total cost of the project is approximately $73,000. Construction on the project was started in July of 2022 and finished in August. Meal Magic will be implemented during the 2022-2023 School year for tracking of the meal purchases of students and staff. This software will cost approximately $3,000 in the first year to implement and $6,000 in subsequent years. The reaming $10,000 in excess fund balance will be retained, in order to aid in the paydown of potential negative student food service account balances. Since students haven?t paid for breakfasts or lunches for the past 2 years, it is unknown how the many will families will have feel a financial burden paying for their children?s school meals. Sincerely, Stephen Grubaugh Director of Business Services

October 22, 2022 Finding Number: 2022-002 ? Reporting Condition: Meals claimed were not supported by count sheets for either breakfast or lunch for the two months meals were tested prior to MDE site visit. Responsible Person: Stephen Grubaugh ? Director of Business Services Implementation Date: 10-22-2022 During the single audit, it was discovered that Bullock Creek Food Service Department meals claimed were not supported by count sheets for either breakfast or lunch for the two months meals were tested prior to MDE site visit. To ensure that this did not continue, Bullock Creek Food Service and the Technology Department worked together to implement the use of Skyward to track the melas served to students. This transition occurred over a few months, as the implementation was rolled out to 5 individual buildings. When MDE came on campus and audited the months during the transition and found a few discrepancies whish were remedied in the software and the claims were adjusted. RPC then audited the month following the MDE reviews and found no discrepancies. Skyward was used for the rest of the year. For the 2022-2023 Scholl year, the Food Service Department may purchase Meal Magic, which is a food Service software that will streamline the recording and reporting processes even more and may reduce the chance of errors even further. Sincerely, Stephen Grubaugh Director of Business Services

2021-002

October 25, 2021 Finding Number: 2021-002 ? Cash Management Condition: Meals claimed were not supported by count sheets for either breakfast or lunch for each month meals were served. Responsible Person: Stephen Grubaugh ? Director of Business Services Implementation Date: 10-25-2021 During the single audit, it was discovered that Bullock Creek Food Service Department had claimed more meals than they had actually served. The amount additional amount that will be returned was $107,383, so I entered an adjusting Journal enter in this amount reducing the revenue and offsetting this amount as a du to other governmental entities in the same amount. To ensure that this does not happen again in the future, we have immediately instituted a consistent method of recording meals served in all 5 of our buildings. We have also reached out to Meal Magic for a quote on a Point-of-Sale system that will also allow for consistent tracking and reporting of meals served by building and will provide a daily report that I will review. Before the monthly claim can be submitted for reimbursement, the Food Service Director (Sherrie VanConant) will submit her meals served to the Administrative Assistant (Julie Neuenfeldt) to enter in the system, and then the Director of Business Services (Stephen Grubaugh) will review the totals for accuracy and approve or request corrections. Sincerely, Stephen Grubaugh Director of Business Services

Corrective Action Plan For: 2019-001-ELIGIBILITY Condition: Information was incorrectly entered into the software from a paper application for a family of one student, which incorrectly identified the student as eligible for free lunch. However, the paper application correctly indicated that, based on recalculation of income, the family did not meet tin income guidelines for free benefits and should have been declined from participating in the program. This resulted in the District receiving approximately $745 in federal funds for the student to which it was not entitled. Corrective Action To Be Taken: The District was implementing a new Point Of Sale/Food Service Management Program in 2018-19. We decided to use the platform our current student database, Skyward, had for this purpose. Skyward tracks changes that occur to a student record, and when looking at the student in question, it was found that the paper application was entered correctly, but then the student was changed to eligible for free lunch. It is believed that the child?s name showed up on an Exception Message that Skyward automatically generates when a student?s status appears to conflict with either a direct certification or entered application. It is now understood that these Exception Messages need to be thoroughly investigated before the automatic recommendation offered by the software is accepted. The Food Service Director will verify each student appearing in these Exception Messages to be sure the correct status is marked on the student record. Responsible Parties for Implementation of Corrective Action: Food Service Director with follow up by the Director of Business Services Date of Anticipated Completion of Corrective Action: The corrective action plan was immediately implemented.

Corrective Action Plan For: 2019-002 ? ON-SITE REVIEWS Condition: The District did not perform the required annual on-site reviews related to the School Breakfast Program or the School Lunch Program. Corrective Action To Be Taken: The Food Service Director has made contact with staff from the Food and Nutrition Programs at the State of Michigan and has copies of all the required annual on-site reviews along with a timeline/checklist to track when reviews are due to be completed. Responsible Parties for Implementation of Corrective Action: Food Service Director with follow up by the Director of Business Services Date of Anticipated Completion of Corrective Action: The corrective action plan was immediately implemented.

Corrective Action Plan For: 2019-003 ? CASH MANAGEMENT Condition: The District did not maintain the required documentation for monthly meal claims, including an exception report used in the determination of proper meal counts. The ISD was able to recreate meals served reports to assist in the audit process, but was not able to recreate the exception report. Corrective Action To Be Taken: With the implementation of the new Point Of Sale/Food Service Management Skyward Program, the Food Service Director and staff were learning the different reports and saving process in Skyward. It appeared that Skyward was saving the monthly Acu-Claim reports used to report the number and types of meals served every month at each building. The Food Service Director was viewing the reports on the screen and transferring information onto a summary sheet for Administration to use to enter the claim in the School Nutrition System. Also, the Food Service Director was viewing exception reports for students that appeared to have issues with free or reduced statuses. To be conservative while learning a new system, adjustments were made to the numbers on the Acu-Claim report to remove the questionable students from the count. Again, it appeared that these exception reports were being saved on the District?s server. However, it was discovered by the District?s Technology Director that in the year-end close out process, all saved reports are erased so queues are ready for new year reports. Saginaw ISD was able to reload reports from a back up done prior to the close out process in order to get the Acu-Claim reports. However, the exception reports viewed on the screen could not be recreated because those are actually messages and not reports in Skyward. Therefore, they disappear completely once viewed and a certain amount of time has passed. The Food Service Director now physically prints a copy of the monthly Acu-Claim report and turns that into Administration to use to enter claim information into the School Nutrition System for meal reimbursement ? no summary sheet is used. Also, exception messages are addressed immediately before the Acu-claim report is ran for the month to be sure any corrections are taken into account and the Acu-claim report is up to date and shows an accurate accounting for meals served for the month. The Food Service Director also saves a PDF of the monthly Acu-claim report on the District?s server in the Food Service directory. The Director of Business Services will also be reviewing each month?s claim before it is submitted in the School Nutrition System. Responsible Parties for Implementation of Corrective Action: Food Service Director with follow up by the Director of Business Services Date of Anticipated Completion of Corrective Action: The corrective action plan was immediately implemented with the September 2019 claim.

Corrective Action Plan For: 2019-004 ? CASH MANAGEMENT Condition: Meals claimed by category did not agree with monthly meals served reports. Corrective Action To Be Taken: The Food Service Director was viewing reports on the computer screen and not printing copies to work from. Transposition and other clerical errors were made when completing the summary sheet that Administration used to enter the claims into the School Nutrition System. The Food Service Director will physically print a copy of the monthly Acu-Claim report and turn that into Administration to use to enter claim information into the School Nutrition System for meal reimbursement ? no summary sheet will be used. The Acu-Claim report layout and how the School Nutrition System auto fills certain fields allows for multiple checks and balances against numbers entered for free, reduced, paid and total breakfast and lunches served. These checks and balances will be reviewed by the Administrative Assistant to the Superintendent who enters the data and again by the Director of Business Services before the claim is submitted. Responsible Parties for Implementation of Corrective Action: Food Service Director with follow up by the Director of Business Services Date of Anticipated Completion of Corrective Action: The corrective action plan was immediately implemented for the September 2019 claim.