Audit 37629

FY End
2022-06-30
Total Expended
$2.87M
Findings
6
Programs
13
Year: 2022 Accepted: 2022-10-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
38773 2022-002 - Yes C
38774 2022-002 - Yes C
38775 2022-002 - Yes C
615215 2022-002 - Yes C
615216 2022-002 - Yes C
615217 2022-002 - Yes C

Contacts

Name Title Type
LFQGH89PQQE6 Kyle Percey Auditee
6075353223 Patrick Jordan 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 Watkins Glen Central School District (the School District), an entity as defined in Note 1 to the School Districts 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 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, 2021, the School District received $43394 worth of commodities under the National School Lunch Program (CFDA #10.559).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

Section III Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $504,606. 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 amount as may be approved by the New York State agency in accordance with ?210.19(a). Cause: Revenues exceeded expenditures by $197,131 in the School Lunch Fund for the year ended June 30, 2022. 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: Due to the Pandemic, the school lunch program created different kinds of meals than would normally be provided with in-person breakfast and lunches. The prepared meals needed to be easily portable and produced in mass quantities all at the same time, resulting in less expense for cost of meals. Now that students are back in person, regular cooked meals will be prepared with an increase in expense. Salaries for school lunch employees have also been increasing year after year due to the increase of minimum wage in New York State. The minimum wage is expected to gradually increase to $15 per hour over the next few years. 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.
Section III Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $504,606. 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 amount as may be approved by the New York State agency in accordance with ?210.19(a). Cause: Revenues exceeded expenditures by $197,131 in the School Lunch Fund for the year ended June 30, 2022. 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: Due to the Pandemic, the school lunch program created different kinds of meals than would normally be provided with in-person breakfast and lunches. The prepared meals needed to be easily portable and produced in mass quantities all at the same time, resulting in less expense for cost of meals. Now that students are back in person, regular cooked meals will be prepared with an increase in expense. Salaries for school lunch employees have also been increasing year after year due to the increase of minimum wage in New York State. The minimum wage is expected to gradually increase to $15 per hour over the next few years. 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.
Section III Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $504,606. 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 amount as may be approved by the New York State agency in accordance with ?210.19(a). Cause: Revenues exceeded expenditures by $197,131 in the School Lunch Fund for the year ended June 30, 2022. 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: Due to the Pandemic, the school lunch program created different kinds of meals than would normally be provided with in-person breakfast and lunches. The prepared meals needed to be easily portable and produced in mass quantities all at the same time, resulting in less expense for cost of meals. Now that students are back in person, regular cooked meals will be prepared with an increase in expense. Salaries for school lunch employees have also been increasing year after year due to the increase of minimum wage in New York State. The minimum wage is expected to gradually increase to $15 per hour over the next few years. 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.
Section III Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $504,606. 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 amount as may be approved by the New York State agency in accordance with ?210.19(a). Cause: Revenues exceeded expenditures by $197,131 in the School Lunch Fund for the year ended June 30, 2022. 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: Due to the Pandemic, the school lunch program created different kinds of meals than would normally be provided with in-person breakfast and lunches. The prepared meals needed to be easily portable and produced in mass quantities all at the same time, resulting in less expense for cost of meals. Now that students are back in person, regular cooked meals will be prepared with an increase in expense. Salaries for school lunch employees have also been increasing year after year due to the increase of minimum wage in New York State. The minimum wage is expected to gradually increase to $15 per hour over the next few years. 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.
Section III Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $504,606. 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 amount as may be approved by the New York State agency in accordance with ?210.19(a). Cause: Revenues exceeded expenditures by $197,131 in the School Lunch Fund for the year ended June 30, 2022. 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: Due to the Pandemic, the school lunch program created different kinds of meals than would normally be provided with in-person breakfast and lunches. The prepared meals needed to be easily portable and produced in mass quantities all at the same time, resulting in less expense for cost of meals. Now that students are back in person, regular cooked meals will be prepared with an increase in expense. Salaries for school lunch employees have also been increasing year after year due to the increase of minimum wage in New York State. The minimum wage is expected to gradually increase to $15 per hour over the next few years. 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.
Section III Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $504,606. 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 amount as may be approved by the New York State agency in accordance with ?210.19(a). Cause: Revenues exceeded expenditures by $197,131 in the School Lunch Fund for the year ended June 30, 2022. 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: Due to the Pandemic, the school lunch program created different kinds of meals than would normally be provided with in-person breakfast and lunches. The prepared meals needed to be easily portable and produced in mass quantities all at the same time, resulting in less expense for cost of meals. Now that students are back in person, regular cooked meals will be prepared with an increase in expense. Salaries for school lunch employees have also been increasing year after year due to the increase of minimum wage in New York State. The minimum wage is expected to gradually increase to $15 per hour over the next few years. 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.