Blissfield Community Schools

2022-001 EXCESS FUND BALANCE - NONPROFIT FOOD SERVICE FUND Immaterial Non-Compliance Assistance Listing# 10.553, 10.555, and 10.559, from U.S. Department of Agriculture, Program award numbers 211861, 220916, 211971, and 210904 passed through Michigan Department of Education, Special Tests and Provisions. Condition: During the course of our audit we noted that the District currently has more than the allowable fund balance in the nonprofit food service fund. As a result, the District will be required to develop a spending plan for reducing the balance to an acceptable level during the current school year. The plan must be submitted to the Michigan Department of Education for prior approval. Excess funds cannot be transferred to the General Fund. Questioned Costs: None Criteria: The U.S. Department of Agriculture requires that the ending fund balance of the nonprofit food service fund does not exceed three months operating expenses (7 CFR Part 210.19(a)(2)). Cause: Unknown Effect: The District is not compliance with U.S. Department of Agriculture regulations. Recommendation: We recommend that the District continue a spending plan to improve the food quality or take other action to improve non-profit food service per applicable federal regulations District Response: The District concurs with the facts of this finding and is implementing procedures to prevent this in the future.

Blissfield Community Schools respectfully submits the following corrective action plan for the year ended June 30,2022. Auditor: Maner Costerisan 2425 E. Grand River Avenue, Suite 1 Lansing, MI 48912 Audit Period: Year ended June 30,2022 Finding - Financial Statement Audit: None noted Finding ? Federal Award: 2022-001 EXCESS FUND BALANCE - NONPROFIT FOOD SERVICE FUND Recommendation: The District should continue a spending plan to improve the food quality or take other action to improve non-profit food service per applicable federal regulations. Action to be taken: The business office will continue to submit spending down plan to MDE for board approval. Anticipated completion date: June 2023 Responsible party: Chief Financial Officer, Judy Pfund and Food Service Director, Amy Gschwind District Response: A majority of the purchases identified in our spend down plan as a result of our June 30, 2021 financial position were not received until July, so our excess fund balance reflected in our June 30, 2022 reports includes last year?s excess also. Once we have computed the excess, we will look at any additional equipment needs as well as increasing food quality. Respectfully submitted, Judith Pfund, CPA Executive Director of Finance

2021-001

2021-001 EXCESS FUND BALANCE - NONPROFIT FOOD SERVICE FUND Immaterial Non-Compliance Assistance Listing# 10.555, and 10.559, from U.S. Department of Agriculture, Program award numbers 200900, 200902, and 210904 passed through Michigan Department of Education, Special Tests and Provisions. Condition: During the course of our audit we noted that the District currently has more than the allowable fund balance in the nonprofit food service fund. As a result, the District will be required to develop a spending plan for reducing the balance to an acceptable level during the current school year. The plan must be submitted to the Michigan Department of Education for prior approval. Excess funds cannot be transferred to the General Fund. Questioned Costs: None Criteria: The U.S. Department of Agriculture requires that the ending fund balance of the nonprofit food service fund does not exceed three months operating expenses (7 CFR Part 210.19(a)(2)). Cause: Unknown Effect: The District is not compliance with U.S. Department of Agriculture regulations. Recommendation: We recommend that the District continue a spending plan to improve the food quality or take other action to improve non-profit food service per applicable federal regulations

CORRECTIVE ACTION PLAN BIissfield Community Schools respectfully submits the following corrective action plan for the year ended June 30,2021. Auditor: Maner Costerisan 2425 E. Grand River Avenue, Suite 1 Lansing, HI 48912 Audit Period: Year ended June 30, 2021 Finding - Financial Statement Audit: None noted Finding - Federal Award: 2021-001 EXCESS FUND BALANCE - NONPROFIT FOOD SERVICE FUND Recommendation: The District should continue a spending plan to improve the food quality or take other action to improve non-profit food service per applicable federal regulations. Action to be taken: The business office will continue to submit spending down plan to MDE for board approval. Anticipated completion date: June 2022 Responsible party: Chief Financial Officer, Judy Pfund and Food Service Director, Amy Gschwind District Response: In anticipation of having a healthy [and Excess) fund balance in the Food Service fund, Blissfield Community Schools included in their Projected FY22 budgets purchases of equipment on the preapproved list. The amounts budgeted and expended will be increased to reflect the computation based on audited financial information.