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Program Name – Child Nutrition Cluster Assistance Listing Number – 10.553, 10.555, 10.559 Pass Through Entity – Michigan Department of Education Finding Type – Noncompliance Criteria – Billing for meal reimbursement should be done on an individual school basis and not combined with other schools. Condition and Description – During our procedures we noted that the Academy including billings for another school along with their own billings to MDE for their food service reimbursements. This other school was also under the management of the Academy’s management company. Questioned Costs - None Identification of a Repeat Finding – This was not a finding in the immediate previous audit. Recommendation – We recommend that the Academy separately bill food service costs for each school individually as required under state guidelines. View of Responsible Officials and Corrective Action Plan – The 2022- 2023 financial audit report identified a compliance finding related to the Academy’s food service funding. Specifically, the operations team from the management company for the Academy during the year of the finding set up a food service account for another Academy under the same DCP account. The impact was that DCP received food service funding for this other Academy throughout the year. The DCP finance team appropriately accounted for and transferred these funds to the other Academy, thus having no impact on the Academy’s financial results. This finding does not apply to the Academy going forward. The other school involved is no longer in operation so only food service monies specific to DCP will be received by the Academy.

Criteria ? Expenses charged to the grant must be allowable, reasonable and properly allocated. Condition ? Based on the review of payroll costs charged to the grant, we noted payroll costs for an employee charged at 100% to the grant instead of at the appropriate allocation. The amount charged was $15,500 while the properly allocated portion is $10,016. Questioned Costs ? None Cause/Effect ? The Academy was not in compliance with allowable costs compliance requirement

Criteria ? Per the grantor requirements, the Academy must submit monthly status reports on the first of each month which should include all activity up to that date. Condition ? Based on the review of report submission dates, we noted that all 4 reports submitted during the fiscal year were submitted after the due date. Questioned Costs ? None Cause/Effect ? The Academy was not in compliance with the Grantor reporting requirement.