FAC Explorer

Audit 326392

FY End
2024-06-30
Total Expended
$2.13M
Findings
6
Programs
11
Organization: Watkins Glen Central School District (NY)
Year: 2024 Accepted: 2024-10-29
Auditor: Insero & CO Cpa's LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504014 2024-001 - Yes C
504015 2024-001 - Yes C
504016 2024-001 - Yes C
1080456 2024-001 - Yes C
1080457 2024-001 - Yes C
1080458 2024-001 - Yes C

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $390,822 - 1
84.010 Title I Grants to Local Educational Agencies $319,025 - 0
84.027 Special Education Grants to States $304,058 - 0
10.553 School Breakfast Program $117,149 - 1
84.287 Twenty-First Century Community Learning Centers $50,368 - 0
84.425 Education Stabilization Fund $49,504 Yes 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $37,119 - 0
84.424 Student Support and Academic Enrichment Program $25,656 - 0
93.276 Drug-Free Communities Support Program Grants $15,387 - 0
10.559 Summer Food Service Program for Children $12,860 - 1
84.173 Special Education Preschool Grants $11,300 - 0

Contacts

Name Title Type
LFQGH89PQQE6 Kyle Percey Auditee
6075353223 Evan Cleveland 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. 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. De Minimis Rate Used: N Rate Explanation: 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. Matching costs, i.e., 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. 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. De Minimis Rate Used: N Rate Explanation: 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. 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 $50,786 worth of commodities under the 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. 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. De Minimis Rate Used: N Rate Explanation: 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. 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. 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. De Minimis Rate Used: N Rate Explanation: 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. 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 2024-001
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 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 NYS Department of Education in accordance with 7 CFR §210.9(b)(2). Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $700,631. At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $572,746. Cause: Revenues exceeded expenditures by $156,622 in the School Lunch Fund for the year ended June 30, 2024. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.9(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $185,586 in the amount of $700,631 at June 30, 2024, and compares with the amounts over the allowable limit in years ended June 30, 2023 and 2022 of $572,746 and $504,606, respectively. Repeat Finding This Finding is a repeat of Finding 2022-002 and 2023-002 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. 2024-001 School Food Account - Net Cash Resources Child Nutrition Cluster - Continued Views of Responsible Officials of the Auditee: The School District is committed and will be diligent in preparing meals with high quality products. Regular cooked meals and expanded menu choices will be prepared which will result in an increase in expenses. There has been unpredictability with the increase of certain goods, and we expect this to continue into the 2024-2025 fiscal year as well. The School District also participates in the Community Eligibility Provision (CEP) which provides free breakfast and lunch to every student within the School District. Salaries for School Lunch employees have also been increasing year after year due to the increase of minimum wage in New York State as well as a new collective bargaining agreement that went into effect 7/1/2025. The minimum wage is expected to increase to $15.50 per hour. The School District does have a practice of transferring BOCES aid gained from the cost of the BOCES management contract to the School Lunch Fund; the aid will not be transferred in upcoming years. The School District has devised a NYSED approved plan to expend the excess funds in the School Lunch Fund through appropriating a substantial amount of fund balance to be planned for and used for the cafeteria and kitchen capital project. That capital project vote is scheduled for December 2024. If needed, we will examine other avenues to ensure we do not exceed the allowable limit of cash at year end.
Finding 2024-001
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 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 NYS Department of Education in accordance with 7 CFR §210.9(b)(2). Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $700,631. At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $572,746. Cause: Revenues exceeded expenditures by $156,622 in the School Lunch Fund for the year ended June 30, 2024. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.9(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $185,586 in the amount of $700,631 at June 30, 2024, and compares with the amounts over the allowable limit in years ended June 30, 2023 and 2022 of $572,746 and $504,606, respectively. Repeat Finding This Finding is a repeat of Finding 2022-002 and 2023-002 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. 2024-001 School Food Account - Net Cash Resources Child Nutrition Cluster - Continued Views of Responsible Officials of the Auditee: The School District is committed and will be diligent in preparing meals with high quality products. Regular cooked meals and expanded menu choices will be prepared which will result in an increase in expenses. There has been unpredictability with the increase of certain goods, and we expect this to continue into the 2024-2025 fiscal year as well. The School District also participates in the Community Eligibility Provision (CEP) which provides free breakfast and lunch to every student within the School District. Salaries for School Lunch employees have also been increasing year after year due to the increase of minimum wage in New York State as well as a new collective bargaining agreement that went into effect 7/1/2025. The minimum wage is expected to increase to $15.50 per hour. The School District does have a practice of transferring BOCES aid gained from the cost of the BOCES management contract to the School Lunch Fund; the aid will not be transferred in upcoming years. The School District has devised a NYSED approved plan to expend the excess funds in the School Lunch Fund through appropriating a substantial amount of fund balance to be planned for and used for the cafeteria and kitchen capital project. That capital project vote is scheduled for December 2024. If needed, we will examine other avenues to ensure we do not exceed the allowable limit of cash at year end.
Finding 2024-001
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 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 NYS Department of Education in accordance with 7 CFR §210.9(b)(2). Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $700,631. At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $572,746. Cause: Revenues exceeded expenditures by $156,622 in the School Lunch Fund for the year ended June 30, 2024. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.9(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $185,586 in the amount of $700,631 at June 30, 2024, and compares with the amounts over the allowable limit in years ended June 30, 2023 and 2022 of $572,746 and $504,606, respectively. Repeat Finding This Finding is a repeat of Finding 2022-002 and 2023-002 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. 2024-001 School Food Account - Net Cash Resources Child Nutrition Cluster - Continued Views of Responsible Officials of the Auditee: The School District is committed and will be diligent in preparing meals with high quality products. Regular cooked meals and expanded menu choices will be prepared which will result in an increase in expenses. There has been unpredictability with the increase of certain goods, and we expect this to continue into the 2024-2025 fiscal year as well. The School District also participates in the Community Eligibility Provision (CEP) which provides free breakfast and lunch to every student within the School District. Salaries for School Lunch employees have also been increasing year after year due to the increase of minimum wage in New York State as well as a new collective bargaining agreement that went into effect 7/1/2025. The minimum wage is expected to increase to $15.50 per hour. The School District does have a practice of transferring BOCES aid gained from the cost of the BOCES management contract to the School Lunch Fund; the aid will not be transferred in upcoming years. The School District has devised a NYSED approved plan to expend the excess funds in the School Lunch Fund through appropriating a substantial amount of fund balance to be planned for and used for the cafeteria and kitchen capital project. That capital project vote is scheduled for December 2024. If needed, we will examine other avenues to ensure we do not exceed the allowable limit of cash at year end.
Finding 2024-001
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 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 NYS Department of Education in accordance with 7 CFR §210.9(b)(2). Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $700,631. At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $572,746. Cause: Revenues exceeded expenditures by $156,622 in the School Lunch Fund for the year ended June 30, 2024. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.9(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $185,586 in the amount of $700,631 at June 30, 2024, and compares with the amounts over the allowable limit in years ended June 30, 2023 and 2022 of $572,746 and $504,606, respectively. Repeat Finding This Finding is a repeat of Finding 2022-002 and 2023-002 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. 2024-001 School Food Account - Net Cash Resources Child Nutrition Cluster - Continued Views of Responsible Officials of the Auditee: The School District is committed and will be diligent in preparing meals with high quality products. Regular cooked meals and expanded menu choices will be prepared which will result in an increase in expenses. There has been unpredictability with the increase of certain goods, and we expect this to continue into the 2024-2025 fiscal year as well. The School District also participates in the Community Eligibility Provision (CEP) which provides free breakfast and lunch to every student within the School District. Salaries for School Lunch employees have also been increasing year after year due to the increase of minimum wage in New York State as well as a new collective bargaining agreement that went into effect 7/1/2025. The minimum wage is expected to increase to $15.50 per hour. The School District does have a practice of transferring BOCES aid gained from the cost of the BOCES management contract to the School Lunch Fund; the aid will not be transferred in upcoming years. The School District has devised a NYSED approved plan to expend the excess funds in the School Lunch Fund through appropriating a substantial amount of fund balance to be planned for and used for the cafeteria and kitchen capital project. That capital project vote is scheduled for December 2024. If needed, we will examine other avenues to ensure we do not exceed the allowable limit of cash at year end.
Finding 2024-001
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 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 NYS Department of Education in accordance with 7 CFR §210.9(b)(2). Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $700,631. At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $572,746. Cause: Revenues exceeded expenditures by $156,622 in the School Lunch Fund for the year ended June 30, 2024. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.9(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $185,586 in the amount of $700,631 at June 30, 2024, and compares with the amounts over the allowable limit in years ended June 30, 2023 and 2022 of $572,746 and $504,606, respectively. Repeat Finding This Finding is a repeat of Finding 2022-002 and 2023-002 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. 2024-001 School Food Account - Net Cash Resources Child Nutrition Cluster - Continued Views of Responsible Officials of the Auditee: The School District is committed and will be diligent in preparing meals with high quality products. Regular cooked meals and expanded menu choices will be prepared which will result in an increase in expenses. There has been unpredictability with the increase of certain goods, and we expect this to continue into the 2024-2025 fiscal year as well. The School District also participates in the Community Eligibility Provision (CEP) which provides free breakfast and lunch to every student within the School District. Salaries for School Lunch employees have also been increasing year after year due to the increase of minimum wage in New York State as well as a new collective bargaining agreement that went into effect 7/1/2025. The minimum wage is expected to increase to $15.50 per hour. The School District does have a practice of transferring BOCES aid gained from the cost of the BOCES management contract to the School Lunch Fund; the aid will not be transferred in upcoming years. The School District has devised a NYSED approved plan to expend the excess funds in the School Lunch Fund through appropriating a substantial amount of fund balance to be planned for and used for the cafeteria and kitchen capital project. That capital project vote is scheduled for December 2024. If needed, we will examine other avenues to ensure we do not exceed the allowable limit of cash at year end.
Finding 2024-001
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 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 NYS Department of Education in accordance with 7 CFR §210.9(b)(2). Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $700,631. At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $572,746. Cause: Revenues exceeded expenditures by $156,622 in the School Lunch Fund for the year ended June 30, 2024. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.9(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $185,586 in the amount of $700,631 at June 30, 2024, and compares with the amounts over the allowable limit in years ended June 30, 2023 and 2022 of $572,746 and $504,606, respectively. Repeat Finding This Finding is a repeat of Finding 2022-002 and 2023-002 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. 2024-001 School Food Account - Net Cash Resources Child Nutrition Cluster - Continued Views of Responsible Officials of the Auditee: The School District is committed and will be diligent in preparing meals with high quality products. Regular cooked meals and expanded menu choices will be prepared which will result in an increase in expenses. There has been unpredictability with the increase of certain goods, and we expect this to continue into the 2024-2025 fiscal year as well. The School District also participates in the Community Eligibility Provision (CEP) which provides free breakfast and lunch to every student within the School District. Salaries for School Lunch employees have also been increasing year after year due to the increase of minimum wage in New York State as well as a new collective bargaining agreement that went into effect 7/1/2025. The minimum wage is expected to increase to $15.50 per hour. The School District does have a practice of transferring BOCES aid gained from the cost of the BOCES management contract to the School Lunch Fund; the aid will not be transferred in upcoming years. The School District has devised a NYSED approved plan to expend the excess funds in the School Lunch Fund through appropriating a substantial amount of fund balance to be planned for and used for the cafeteria and kitchen capital project. That capital project vote is scheduled for December 2024. If needed, we will examine other avenues to ensure we do not exceed the allowable limit of cash at year end.