Merrill Community School District

EIN: 386003444

UEI: KB2ZZSW2GJA9

Data as of August 22, 2026

Merrill Community School District6 audit years2 findings1 repeat
6
Audit Years
2
Total Findings
1
Repeat Findings

FY 2021-06-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on November 18, 2021. 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, 2022 (1557 days ago).

What is a management decision? →
2021-001
Program Income
REPEAT

Section 3 - Federal Program Findings 2021-001 - 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, 10.555, 10.559 and 10.579) Criteria. The USDA requires the ending balance of the non-profit school food service fund does not exceed three months' average of operating expenses. 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 the extra funding received in the latter half of the District's prior fiscal year end related to the Summer Food Service Program (COVID-19). The District did not spend down the fund balance during the 2021 fiscal year. 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 Summer Food Service Program near year end in fiscal year 2020. This caused the District to have more fund balance than allowed by USDA. The District has not spent down the fund balance as of 6/30/2021. Responsible officials. Director of Finance Estimated completion. June 2022

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Full finding narrative

Section 3 - Federal Program Findings 2021-001 - 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, 10.555, 10.559 and 10.579) Criteria. The USDA requires the ending balance of the non-profit school food service fund does not exceed three months' average of operating expenses. 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 the extra funding received in the latter half of the District's prior fiscal year end related to the Summer Food Service Program (COVID-19). The District did not spend down the fund balance during the 2021 fiscal year. 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 Summer Food Service Program near year end in fiscal year 2020. This caused the District to have more fund balance than allowed by USDA. The District has not spent down the fund balance as of 6/30/2021. Responsible officials. Director of Finance Estimated completion. June 2022

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. 2021-001 - 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 Summer Food Service Program near year end in fiscal year 2020. This caused the District to have more fund balance than allowed by USDA. The District has not spent down the fund balance as of 6/30/2021. The Food Service Director and Finance Director are in the process of creating a spenddown plan to be submitted to MDE to get the fund balance within an allowable range. Responsible Party. Director of Finance Date of Planned Corrective Action

Prior Finding References

2020-001

About Program Income →

FY 2020-06-30

FAC accepted this audit on November 11, 2020 — management decision was due May 11, 2021.

2020-001
Program Income

Section 3 - Federal Program Finding 2020-001 - 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, 10.555 and 10.559) Criteria. The USDA requires the ending balance of the non-profit school food service fund does not exceed three months' average of operating expenses. 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 latter 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 year end. 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 within an allowable range. Responsible officials. Director of Finance. Estimated Completion Date. June 2021.

Show full finding ▾
Full finding narrative

Section 3 - Federal Program Finding 2020-001 - 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, 10.555 and 10.559) Criteria. The USDA requires the ending balance of the non-profit school food service fund does not exceed three months' average of operating expenses. 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 latter 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 year end. 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 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 noted below, and have described our planned actions as a result. 2020-001 - 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 are in the process of creating 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 →

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