FAC Explorer

Audit 384367

FY End
2025-06-30
Total Expended
$1.49M
Findings
3
Programs
8
Organization: Watkins Glen Central School District (NY)
Year: 2025 Accepted: 2026-01-29
Auditor: INSERO & CO CPA'S LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1170979 2025-001 Material Weakness Yes C
1170980 2025-001 Material Weakness Yes C
1170981 2025-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
10.555 NATIONAL SCHOOL LUNCH PROGRAM $367,429 Yes 1
84.027 SPECIAL EDUCATION GRANTS TO STATES $300,248 Yes 0
10.553 SCHOOL BREAKFAST PROGRAM $116,722 Yes 1
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $51,366 Yes 0
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $24,312 Yes 0
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $13,435 Yes 0
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $13,160 Yes 1
84.425 EDUCATION STABILIZATION FUND $6,098 Yes 0

Contacts

Name Title Type
LFQGH89PQQE6 Kyle Percey Auditee
6075353223 Evan Cleveland Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes federal award activity of the Watkins Glen School District (the School District) under programs of the federal government for the year ended June 30, 2025. The information in the SEFA is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement’s, Cost principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the School District, it is not intended to and does not present the financial position or changes in net position.
Matching costs, such as the School District's share of certain program costs, are not included in the reported expenditures.
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, 2025, the School District received $48,990 worth of commodities under the National School Lunch Program (ALN #10.555).
No amounts were provided to subrecipients.
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. No amounts were provided to subrecipients.
As allowed by federal regulations, the School District elected to transfer program funds. The School District expended $24,312 from its Student Support and Academic Enrichments Program (ALN #84.424) and $31,356 from its Improving Teacher Quality State Grants (ALN #84.367) on allowable activities of the Title I Grants to Local Educational Agencies (ALN #84.010). This amount is reflected in the expenditures of Title I Grants to Local Educational Agencies (ALN #84.010).

Finding Details

Finding 2025-001
Finding 2025-001 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 six 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, 2025, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $130,028. At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $700,631. Cause: Revenues exceeded expenditures by $125,966 in the School Lunch Fund for the year ended June 30, 2025. 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 $376,780 in the amount of $130,028 at June 30, 2025, and compares with the amounts over the allowable limit in years ended June 30, 2024 of $700,631. Repeat Finding This Finding is a repeat of Finding 2023-002 and 2024-001. 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. Views of Responsible Officials of the Auditee: The School District is committed and will be diligent in prepared cost 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 2025-2026 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. The minimum wage is expected to increase to $16.00 per hour and entry level wages have increased per contract. 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 within the next planned capital project. We are currently in the planning phase of our next capital project with a vote anticipated during the 2025- 2026 fiscal year. If needed, we will examine other avenues to ensure we do not exceed the allowable limit of cash at year end.