FAC Explorer

Audit 324935

FY End
2024-06-30
Total Expended
$4.97M
Findings
6
Programs
11
Organization: Waverly Central School District (NY)
Year: 2024 Accepted: 2024-10-16
Auditor: Insero & CO Cpa's LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
502997 2024-002 - Yes C
502998 2024-002 - Yes C
502999 2024-002 - Yes C
1079439 2024-002 - Yes C
1079440 2024-002 - Yes C
1079441 2024-002 - Yes C

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.44M - 0
10.555 National School Lunch Program $821,859 Yes 1
10.766 Community Facilities Loans and Grants $626,949 - 0
10.553 School Breakfast Program $248,307 Yes 1
84.010 Title I Grants to Local Educational Agencies $91,821 - 0
84.027 Special Education Grants to States $74,207 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $58,714 - 0
84.424 Student Support and Academic Enrichment Program $31,971 - 0
84.287 Twenty-First Century Community Learning Centers $29,502 - 0
10.559 Summer Food Service Program for Children $20,164 Yes 1
84.173 Special Education Preschool Grants $6,471 - 0

Contacts

Name Title Type
PD2KK5PY4JL3 Kathy Rote Auditee
6075652841 Benjamin Owens Auditor
No contacts on file

Notes to SEFA

Title: Matching Costs Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the School District, an entity as defined in Note 1 to the School District's 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. 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 Uniform Guidance, Audits of State and Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: 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. Matching Costs Matching costs, such as the School District's share of certain program costs, are not included in the reported expenditures.
Title: Non-Monetary Federal Program Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the School District, an entity as defined in Note 1 to the School District's 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. 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 Uniform Guidance, Audits of State and Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: 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. Non-Monetary Federal Program 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, 2024, the School District received $89,048 worth of commodities under National School Lunch Program (ALN #10.555).
Title: Subrecipients Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the School District, an entity as defined in Note 1 to the School District's 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. 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 Uniform Guidance, Audits of State and Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: 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. Subrecipients No amounts were provided to subrecipients.
Title: Other Disclosures Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the School District, an entity as defined in Note 1 to the School District's 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. 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 Uniform Guidance, Audits of State and Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: 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. 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 District’s casualty insurance policies. There were no loans or loan guarantees outstanding at year end.

Finding Details

Finding 2024-002
Finding 2024-002 Issue: Net Cash Resources Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Pass-Through Agency: NYS Department of Education Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit cash by $839,352. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed three months average expenditures for its School Lunch Fund or such other amount as may be approved by the New York State agency in accordance with §210.19(a). Cause/Effect: The School District received a significant increase in the State reimbursements rate in the current year, outpacing the increase in expenses and contributing to an overall increase in the surplus for 2024. As a result, the School District continues to be out of compliance with 7 CFR §210.19(a). Questioned Costs: None known. Context: The School District was over the allowable limit by $839,352 at year end June 30, 2024, and increase of $183,635 from last year’s overage of $655,717. Repeat Finding: The finding is a repeat of finding 2023-002 from the prior year. 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. Management Response: School District management agrees with condition, cause, and recommendation. With this overage, the School District has purchased some new equipment for the cafeteria. Since the School District is CEP, there is no option to changing the revenue. The School District will continue upgrading the kitchens with the excess.
Finding 2024-002
Finding 2024-002 Issue: Net Cash Resources Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Pass-Through Agency: NYS Department of Education Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit cash by $839,352. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed three months average expenditures for its School Lunch Fund or such other amount as may be approved by the New York State agency in accordance with §210.19(a). Cause/Effect: The School District received a significant increase in the State reimbursements rate in the current year, outpacing the increase in expenses and contributing to an overall increase in the surplus for 2024. As a result, the School District continues to be out of compliance with 7 CFR §210.19(a). Questioned Costs: None known. Context: The School District was over the allowable limit by $839,352 at year end June 30, 2024, and increase of $183,635 from last year’s overage of $655,717. Repeat Finding: The finding is a repeat of finding 2023-002 from the prior year. 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. Management Response: School District management agrees with condition, cause, and recommendation. With this overage, the School District has purchased some new equipment for the cafeteria. Since the School District is CEP, there is no option to changing the revenue. The School District will continue upgrading the kitchens with the excess.
Finding 2024-002
Finding 2024-002 Issue: Net Cash Resources Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Pass-Through Agency: NYS Department of Education Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit cash by $839,352. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed three months average expenditures for its School Lunch Fund or such other amount as may be approved by the New York State agency in accordance with §210.19(a). Cause/Effect: The School District received a significant increase in the State reimbursements rate in the current year, outpacing the increase in expenses and contributing to an overall increase in the surplus for 2024. As a result, the School District continues to be out of compliance with 7 CFR §210.19(a). Questioned Costs: None known. Context: The School District was over the allowable limit by $839,352 at year end June 30, 2024, and increase of $183,635 from last year’s overage of $655,717. Repeat Finding: The finding is a repeat of finding 2023-002 from the prior year. 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. Management Response: School District management agrees with condition, cause, and recommendation. With this overage, the School District has purchased some new equipment for the cafeteria. Since the School District is CEP, there is no option to changing the revenue. The School District will continue upgrading the kitchens with the excess.
Finding 2024-002
Finding 2024-002 Issue: Net Cash Resources Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Pass-Through Agency: NYS Department of Education Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit cash by $839,352. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed three months average expenditures for its School Lunch Fund or such other amount as may be approved by the New York State agency in accordance with §210.19(a). Cause/Effect: The School District received a significant increase in the State reimbursements rate in the current year, outpacing the increase in expenses and contributing to an overall increase in the surplus for 2024. As a result, the School District continues to be out of compliance with 7 CFR §210.19(a). Questioned Costs: None known. Context: The School District was over the allowable limit by $839,352 at year end June 30, 2024, and increase of $183,635 from last year’s overage of $655,717. Repeat Finding: The finding is a repeat of finding 2023-002 from the prior year. 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. Management Response: School District management agrees with condition, cause, and recommendation. With this overage, the School District has purchased some new equipment for the cafeteria. Since the School District is CEP, there is no option to changing the revenue. The School District will continue upgrading the kitchens with the excess.
Finding 2024-002
Finding 2024-002 Issue: Net Cash Resources Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Pass-Through Agency: NYS Department of Education Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit cash by $839,352. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed three months average expenditures for its School Lunch Fund or such other amount as may be approved by the New York State agency in accordance with §210.19(a). Cause/Effect: The School District received a significant increase in the State reimbursements rate in the current year, outpacing the increase in expenses and contributing to an overall increase in the surplus for 2024. As a result, the School District continues to be out of compliance with 7 CFR §210.19(a). Questioned Costs: None known. Context: The School District was over the allowable limit by $839,352 at year end June 30, 2024, and increase of $183,635 from last year’s overage of $655,717. Repeat Finding: The finding is a repeat of finding 2023-002 from the prior year. 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. Management Response: School District management agrees with condition, cause, and recommendation. With this overage, the School District has purchased some new equipment for the cafeteria. Since the School District is CEP, there is no option to changing the revenue. The School District will continue upgrading the kitchens with the excess.
Finding 2024-002
Finding 2024-002 Issue: Net Cash Resources Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Pass-Through Agency: NYS Department of Education Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit cash by $839,352. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed three months average expenditures for its School Lunch Fund or such other amount as may be approved by the New York State agency in accordance with §210.19(a). Cause/Effect: The School District received a significant increase in the State reimbursements rate in the current year, outpacing the increase in expenses and contributing to an overall increase in the surplus for 2024. As a result, the School District continues to be out of compliance with 7 CFR §210.19(a). Questioned Costs: None known. Context: The School District was over the allowable limit by $839,352 at year end June 30, 2024, and increase of $183,635 from last year’s overage of $655,717. Repeat Finding: The finding is a repeat of finding 2023-002 from the prior year. 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. Management Response: School District management agrees with condition, cause, and recommendation. With this overage, the School District has purchased some new equipment for the cafeteria. Since the School District is CEP, there is no option to changing the revenue. The School District will continue upgrading the kitchens with the excess.