Houghton Lake Community Schools

EIN: 386003399

UEI: H5KVMJMMFU88

Data as of August 24, 2026

Houghton Lake Community Schools10 audit years2 findings
10
Audit Years
2
Total Findings
0
Repeat Findings

FY 2020-06-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on November 18, 2020. 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 18, 2021 (1924 days ago).

What is a management decision? →
2020-003
Program Income

2020-003 ? Program Income - Food Service Fund Balance Finding Type. Immaterial Noncompliance in Internal Controls over Compliance Federal program(s) U.S. Department of Agriculture Child Nutrition Cluster (CFDA# 10.553 and 10.555); 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. As of June 30, 2020, the District's fund balance exceeded three months' average of operating expenses. Cause. This condition appears to be the result of the extra funding received in the later half of the District's fiscal year end related to the Summer Feeding School Program (COVID-19). 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. Recommendation. We recommend that the District implement a plan to spend down the fund balance and submit this plan to MDE for approval. View of Responsible Official. The District is aware of the USDA fund balance requirements. The District received additional funding due to the COVID-19 feeding program near yearend. This caused the District to have more fund balance than allowed by USDA. The District and the State were shut down from March through June with no way of spending down the fund balance. The Food Service Director and Finance Director have created a spenddown plan to be submitted to MDE and get the fund balance within an allowable range. Responsible Officials. Director of Finance Estimated Completion Date. June 2021

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Full finding narrative

2020-003 ? Program Income - Food Service Fund Balance Finding Type. Immaterial Noncompliance in Internal Controls over Compliance Federal program(s) U.S. Department of Agriculture Child Nutrition Cluster (CFDA# 10.553 and 10.555); 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. As of June 30, 2020, the District's fund balance exceeded three months' average of operating expenses. Cause. This condition appears to be the result of the extra funding received in the later half of the District's fiscal year end related to the Summer Feeding School Program (COVID-19). 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. Recommendation. We recommend that the District implement a plan to spend down the fund balance and submit this plan to MDE for approval. View of Responsible Official. The District is aware of the USDA fund balance requirements. The District received additional funding due to the COVID-19 feeding program near yearend. This caused the District to have more fund balance than allowed by USDA. The District and the State were shut down from March through June with no way of spending down the fund balance. The Food Service Director and Finance Director have created a spenddown plan to be submitted to MDE and get the fund balance within an allowable range. Responsible Officials. Director of Finance Estimated Completion Date. June 2021

Corrective Action Plan

CORRECTIVE ACTION PLAN Certain matters were brought to our attention as a result of the audit process. These are described more fully in the Schedule of Findings and Questioned Costs. We evaluated the matters as noted below, and have described our planned actions as a result. 2020-003 ? Program Income ? Food Service Fund Balance Management Assessment. We concur with the audit assessment regarding this matter. Planned Corrective Action. The District is aware of the USDA fund balance requirements. The District received additional funding due to the COVID-19 feeding program near yearend. This caused the District to have more fund balance than allowed by USDA. The District and the State were shut down from March through June with no way of spending down the fund balance. The Food Service Director and Finance Director have created a spenddown plan to be submitted to MDE and get the fund balance within an allowable range. Responsible Party. Director of Finance Date of Planned Corrective Action. June 2021

About Program Income →

FY 2019-06-30

FAC accepted this audit on November 6, 2019 — management decision was due May 6, 2020.

2019-004
Activities Allowed or Unallowed / Cost Allowability

2019-004 ? Allowable Costs/Cost Principles - Journal Entries Finding Type. Immaterial Noncompliance, Significant Deficiency in Internal Controls over Compliance Program. Child Nutrition Cluster (CFDA# 10.553, 10.555 and 10.559); Passed through MDE; All project numbers Criteria. Uniform Guidance requires the District to ensure all funds received are spent only for reasonable and necessary costs of the program. To determine whether these transactions were reasonable and necessary, the District must retain appropriate supporting documentation in its records. Condition. During our testing of journal entries, the District could not provide supporting documentation for two out of the eleven journal entries selected. Cause. This condition appears to have been caused by the District not following its process of retaining documentation. Questioned Costs. No costs are required to be questioned as a result of this finding. Effect. As a result of this condition, the District did not comply with the requirements over activities allowed and unallowed to ensure appropriate controls are in place to adequately maintain records and verify transactions are reasonable and necessary for the program. Recommendation. We recommend that the District retain appropriate supporting documentation for all transactions.

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Full finding narrative

2019-004 ? Allowable Costs/Cost Principles - Journal Entries Finding Type. Immaterial Noncompliance, Significant Deficiency in Internal Controls over Compliance Program. Child Nutrition Cluster (CFDA# 10.553, 10.555 and 10.559); Passed through MDE; All project numbers Criteria. Uniform Guidance requires the District to ensure all funds received are spent only for reasonable and necessary costs of the program. To determine whether these transactions were reasonable and necessary, the District must retain appropriate supporting documentation in its records. Condition. During our testing of journal entries, the District could not provide supporting documentation for two out of the eleven journal entries selected. Cause. This condition appears to have been caused by the District not following its process of retaining documentation. Questioned Costs. No costs are required to be questioned as a result of this finding. Effect. As a result of this condition, the District did not comply with the requirements over activities allowed and unallowed to ensure appropriate controls are in place to adequately maintain records and verify transactions are reasonable and necessary for the program. Recommendation. We recommend that the District retain appropriate supporting documentation for all transactions.

Corrective Action Plan

2019-004 Allowable Costs/Cost Principles ? Journal Entries Corrective Action Response: The District has made significant adjustments to correct this deficiency by changing procedures to require a form for journal entries, which will include supporting documentation. Also, the process will require a sign off from the supervisor to complete a journal entry. Personnel responsible for resolution: Julie A. Brown, Superintendent Anticipated completion date: June 30, 2020

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →

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