FAC Explorer

Audit 28738

FY End
2022-06-30
Total Expended
$18.64M
Findings
6
Programs
16
Organization: Elmira City School District (NY)
Year: 2022 Accepted: 2022-10-31
Auditor: Insero & CO Cpa's LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
28394 2022-001 - Yes C
28395 2022-001 - Yes C
28396 2022-001 - Yes C
604836 2022-001 - Yes C
604837 2022-001 - Yes C
604838 2022-001 - Yes C

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $6.39M Yes 0
84.010 Title I Grants to Local Educational Agencies $3.86M Yes 0
10.555 National School Lunch Program $2.85M - 1
84.027 Special Education_grants to States $1.90M - 0
84.287 Twenty-First Century Community Learning Centers $836,242 - 0
10.553 School Breakfast Program $662,234 - 1
84.215 Fund for the Improvement of Education $564,678 - 0
10.559 Summer Food Service Program for Children $562,302 - 1
84.367 Improving Teacher Quality State Grants $372,955 - 0
84.424 Student Support and Academic Enrichment Program $237,474 - 0
10.649 Pandemic Ebt Administrative Costs $113,161 - 0
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $110,152 - 0
10.582 Fresh Fruit and Vegetable Program $104,938 - 0
84.173 Special Education_preschool Grants $68,469 - 0
10.542 Pandemic Ebt Food Benefits $9,661 - 0
84.365 English Language Acquisition State Grants $246 - 0

Contacts

Name Title Type
T11JQE7ALJH4 Lindsey Tice Auditee
6077353054 Leslie Spurgin Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all Federal awards programs administered by the Elmira City School District (the School District), an entity as defined in Note 1 to the basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. Note 2 Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. Note 3 Indirect Costs Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The School District has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. Note 4 Matching Costs Matching costs, such as the School Districts share of certain program costs, are not included in the reported expenditures. Note 5 The School District is the recipient of a federal award program that does not result in cash receipts or disbursements termed a non-monetary program. During the year ended June 30, 2022, the District received $290,063 worth of commodities under the National School Lunch Program (ALN #10.555).Note 6 Subrecipients No amounts were provided to subrecipients. Note 7 Other Disclosures No insurance is carried specifically to cover equipment purchased with Federal Funds. Any equipment purchased with Federal Funds has only a nominal value and is covered by the School Districts casualty insurance policies. There were no loans or loan guarantees outstanding at year end. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Condition: At June 30, 2022, net cash resources in the School Lunch Funded exceeded the allowable limit by $984,093. At June 30,2021, net cash resources in the School Lunch Fund exceeded the allowable limit by $106,907. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its School Lunch Fund or such other amounts as may be approved by the New York State agency in accordance with 7 CFR 210.19(a) Cause: For the Year ended June 30. 2022, revenues exceeded expenditures in the School Lunch Fund by $1,149,007. Revenue increased significantly from the prior year while expenditures only saw modest increase. Expenditures in 2020-2021 fiscal year School Lunch Fund were less by almost 24% due to COVID-19. Effect: The School District is not in compliance with 7 CFR 210.19(a). Recommendation: We recommend the School District review its net cash resources in the School Lunch Fund and develop a plan to reduce them to an allowable amount. Response/Board Action: In returning to full district operations in the 2021-2022 school year, revenues significantly increased in response to district operations. While spending increased by more than 36%, revenues increased by more than 90%. The significant increases to revenue can be correlated back to federal reimbursements for breakfast, lunch and snack. Pandemic reimbursement rates were used through 6/30/2022, resulting in an average increase of .55/lunch reimbursement. Coinciding with the return of in-person instruction, the district overall has seen a decrease in enrollment. The last full year we can compare is 2018-2019 where 715,000 lunches were served, in contrast, 2021-2022 had a total of 576,000 lunches served. In January of 2022, the district implemented an all staff mid-year wage increase. Cafeteria wages were brought to $15/hour for all entry level positions, with additional increases on accelerated steps where appropriate. This had an overall impact of roughly 10% increase in spending in the area of payroll and benefits compared to the 2020-2021 school year. Given the current fiscal environment, the district will continue to see increases to operating costs. The 2022-23 milk bid alone came in 11.6% higher than the 2021-2022 school year. Along with an increase to operational costs and routine equipment replacements, additional planning has taken place for future spending. Initial steps in the re-design of serving line pieces at the high school have begun to take place for the next year. Plans to re-do the serving lines in grades 3-6 were put on hold during COVID. Those projects will begin to be resurrected within the 2022-2023 school year.
Finding 2022-001
Condition: At June 30, 2022, net cash resources in the School Lunch Funded exceeded the allowable limit by $984,093. At June 30,2021, net cash resources in the School Lunch Fund exceeded the allowable limit by $106,907. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its School Lunch Fund or such other amounts as may be approved by the New York State agency in accordance with 7 CFR 210.19(a) Cause: For the Year ended June 30. 2022, revenues exceeded expenditures in the School Lunch Fund by $1,149,007. Revenue increased significantly from the prior year while expenditures only saw modest increase. Expenditures in 2020-2021 fiscal year School Lunch Fund were less by almost 24% due to COVID-19. Effect: The School District is not in compliance with 7 CFR 210.19(a). Recommendation: We recommend the School District review its net cash resources in the School Lunch Fund and develop a plan to reduce them to an allowable amount. Response/Board Action: In returning to full district operations in the 2021-2022 school year, revenues significantly increased in response to district operations. While spending increased by more than 36%, revenues increased by more than 90%. The significant increases to revenue can be correlated back to federal reimbursements for breakfast, lunch and snack. Pandemic reimbursement rates were used through 6/30/2022, resulting in an average increase of .55/lunch reimbursement. Coinciding with the return of in-person instruction, the district overall has seen a decrease in enrollment. The last full year we can compare is 2018-2019 where 715,000 lunches were served, in contrast, 2021-2022 had a total of 576,000 lunches served. In January of 2022, the district implemented an all staff mid-year wage increase. Cafeteria wages were brought to $15/hour for all entry level positions, with additional increases on accelerated steps where appropriate. This had an overall impact of roughly 10% increase in spending in the area of payroll and benefits compared to the 2020-2021 school year. Given the current fiscal environment, the district will continue to see increases to operating costs. The 2022-23 milk bid alone came in 11.6% higher than the 2021-2022 school year. Along with an increase to operational costs and routine equipment replacements, additional planning has taken place for future spending. Initial steps in the re-design of serving line pieces at the high school have begun to take place for the next year. Plans to re-do the serving lines in grades 3-6 were put on hold during COVID. Those projects will begin to be resurrected within the 2022-2023 school year.
Finding 2022-001
Condition: At June 30, 2022, net cash resources in the School Lunch Funded exceeded the allowable limit by $984,093. At June 30,2021, net cash resources in the School Lunch Fund exceeded the allowable limit by $106,907. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its School Lunch Fund or such other amounts as may be approved by the New York State agency in accordance with 7 CFR 210.19(a) Cause: For the Year ended June 30. 2022, revenues exceeded expenditures in the School Lunch Fund by $1,149,007. Revenue increased significantly from the prior year while expenditures only saw modest increase. Expenditures in 2020-2021 fiscal year School Lunch Fund were less by almost 24% due to COVID-19. Effect: The School District is not in compliance with 7 CFR 210.19(a). Recommendation: We recommend the School District review its net cash resources in the School Lunch Fund and develop a plan to reduce them to an allowable amount. Response/Board Action: In returning to full district operations in the 2021-2022 school year, revenues significantly increased in response to district operations. While spending increased by more than 36%, revenues increased by more than 90%. The significant increases to revenue can be correlated back to federal reimbursements for breakfast, lunch and snack. Pandemic reimbursement rates were used through 6/30/2022, resulting in an average increase of .55/lunch reimbursement. Coinciding with the return of in-person instruction, the district overall has seen a decrease in enrollment. The last full year we can compare is 2018-2019 where 715,000 lunches were served, in contrast, 2021-2022 had a total of 576,000 lunches served. In January of 2022, the district implemented an all staff mid-year wage increase. Cafeteria wages were brought to $15/hour for all entry level positions, with additional increases on accelerated steps where appropriate. This had an overall impact of roughly 10% increase in spending in the area of payroll and benefits compared to the 2020-2021 school year. Given the current fiscal environment, the district will continue to see increases to operating costs. The 2022-23 milk bid alone came in 11.6% higher than the 2021-2022 school year. Along with an increase to operational costs and routine equipment replacements, additional planning has taken place for future spending. Initial steps in the re-design of serving line pieces at the high school have begun to take place for the next year. Plans to re-do the serving lines in grades 3-6 were put on hold during COVID. Those projects will begin to be resurrected within the 2022-2023 school year.
Finding 2022-001
Condition: At June 30, 2022, net cash resources in the School Lunch Funded exceeded the allowable limit by $984,093. At June 30,2021, net cash resources in the School Lunch Fund exceeded the allowable limit by $106,907. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its School Lunch Fund or such other amounts as may be approved by the New York State agency in accordance with 7 CFR 210.19(a) Cause: For the Year ended June 30. 2022, revenues exceeded expenditures in the School Lunch Fund by $1,149,007. Revenue increased significantly from the prior year while expenditures only saw modest increase. Expenditures in 2020-2021 fiscal year School Lunch Fund were less by almost 24% due to COVID-19. Effect: The School District is not in compliance with 7 CFR 210.19(a). Recommendation: We recommend the School District review its net cash resources in the School Lunch Fund and develop a plan to reduce them to an allowable amount. Response/Board Action: In returning to full district operations in the 2021-2022 school year, revenues significantly increased in response to district operations. While spending increased by more than 36%, revenues increased by more than 90%. The significant increases to revenue can be correlated back to federal reimbursements for breakfast, lunch and snack. Pandemic reimbursement rates were used through 6/30/2022, resulting in an average increase of .55/lunch reimbursement. Coinciding with the return of in-person instruction, the district overall has seen a decrease in enrollment. The last full year we can compare is 2018-2019 where 715,000 lunches were served, in contrast, 2021-2022 had a total of 576,000 lunches served. In January of 2022, the district implemented an all staff mid-year wage increase. Cafeteria wages were brought to $15/hour for all entry level positions, with additional increases on accelerated steps where appropriate. This had an overall impact of roughly 10% increase in spending in the area of payroll and benefits compared to the 2020-2021 school year. Given the current fiscal environment, the district will continue to see increases to operating costs. The 2022-23 milk bid alone came in 11.6% higher than the 2021-2022 school year. Along with an increase to operational costs and routine equipment replacements, additional planning has taken place for future spending. Initial steps in the re-design of serving line pieces at the high school have begun to take place for the next year. Plans to re-do the serving lines in grades 3-6 were put on hold during COVID. Those projects will begin to be resurrected within the 2022-2023 school year.
Finding 2022-001
Condition: At June 30, 2022, net cash resources in the School Lunch Funded exceeded the allowable limit by $984,093. At June 30,2021, net cash resources in the School Lunch Fund exceeded the allowable limit by $106,907. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its School Lunch Fund or such other amounts as may be approved by the New York State agency in accordance with 7 CFR 210.19(a) Cause: For the Year ended June 30. 2022, revenues exceeded expenditures in the School Lunch Fund by $1,149,007. Revenue increased significantly from the prior year while expenditures only saw modest increase. Expenditures in 2020-2021 fiscal year School Lunch Fund were less by almost 24% due to COVID-19. Effect: The School District is not in compliance with 7 CFR 210.19(a). Recommendation: We recommend the School District review its net cash resources in the School Lunch Fund and develop a plan to reduce them to an allowable amount. Response/Board Action: In returning to full district operations in the 2021-2022 school year, revenues significantly increased in response to district operations. While spending increased by more than 36%, revenues increased by more than 90%. The significant increases to revenue can be correlated back to federal reimbursements for breakfast, lunch and snack. Pandemic reimbursement rates were used through 6/30/2022, resulting in an average increase of .55/lunch reimbursement. Coinciding with the return of in-person instruction, the district overall has seen a decrease in enrollment. The last full year we can compare is 2018-2019 where 715,000 lunches were served, in contrast, 2021-2022 had a total of 576,000 lunches served. In January of 2022, the district implemented an all staff mid-year wage increase. Cafeteria wages were brought to $15/hour for all entry level positions, with additional increases on accelerated steps where appropriate. This had an overall impact of roughly 10% increase in spending in the area of payroll and benefits compared to the 2020-2021 school year. Given the current fiscal environment, the district will continue to see increases to operating costs. The 2022-23 milk bid alone came in 11.6% higher than the 2021-2022 school year. Along with an increase to operational costs and routine equipment replacements, additional planning has taken place for future spending. Initial steps in the re-design of serving line pieces at the high school have begun to take place for the next year. Plans to re-do the serving lines in grades 3-6 were put on hold during COVID. Those projects will begin to be resurrected within the 2022-2023 school year.
Finding 2022-001
Condition: At June 30, 2022, net cash resources in the School Lunch Funded exceeded the allowable limit by $984,093. At June 30,2021, net cash resources in the School Lunch Fund exceeded the allowable limit by $106,907. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its School Lunch Fund or such other amounts as may be approved by the New York State agency in accordance with 7 CFR 210.19(a) Cause: For the Year ended June 30. 2022, revenues exceeded expenditures in the School Lunch Fund by $1,149,007. Revenue increased significantly from the prior year while expenditures only saw modest increase. Expenditures in 2020-2021 fiscal year School Lunch Fund were less by almost 24% due to COVID-19. Effect: The School District is not in compliance with 7 CFR 210.19(a). Recommendation: We recommend the School District review its net cash resources in the School Lunch Fund and develop a plan to reduce them to an allowable amount. Response/Board Action: In returning to full district operations in the 2021-2022 school year, revenues significantly increased in response to district operations. While spending increased by more than 36%, revenues increased by more than 90%. The significant increases to revenue can be correlated back to federal reimbursements for breakfast, lunch and snack. Pandemic reimbursement rates were used through 6/30/2022, resulting in an average increase of .55/lunch reimbursement. Coinciding with the return of in-person instruction, the district overall has seen a decrease in enrollment. The last full year we can compare is 2018-2019 where 715,000 lunches were served, in contrast, 2021-2022 had a total of 576,000 lunches served. In January of 2022, the district implemented an all staff mid-year wage increase. Cafeteria wages were brought to $15/hour for all entry level positions, with additional increases on accelerated steps where appropriate. This had an overall impact of roughly 10% increase in spending in the area of payroll and benefits compared to the 2020-2021 school year. Given the current fiscal environment, the district will continue to see increases to operating costs. The 2022-23 milk bid alone came in 11.6% higher than the 2021-2022 school year. Along with an increase to operational costs and routine equipment replacements, additional planning has taken place for future spending. Initial steps in the re-design of serving line pieces at the high school have begun to take place for the next year. Plans to re-do the serving lines in grades 3-6 were put on hold during COVID. Those projects will begin to be resurrected within the 2022-2023 school year.