FAC Explorer

Audit 55055

FY End
2022-06-30
Total Expended
$10.55M
Findings
6
Programs
14
Organization: Ithaca City School District (NY)
Year: 2022 Accepted: 2022-11-13
Auditor: Inser & CO Cpa's LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59722 2022-001 - Yes C
59723 2022-001 - Yes C
59724 2022-001 - Yes C
636164 2022-001 - Yes C
636165 2022-001 - Yes C
636166 2022-001 - Yes C

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $4.29M Yes 0
10.555 National School Lunch Program $2.34M - 1
84.027 Special Education_grants to States $1.37M Yes 0
84.010 Title I Grants to Local Educational Agencies $901,220 - 0
10.553 School Breakfast Program $622,025 - 1
93.600 Head Start $254,273 - 0
84.287 Twenty-First Century Community Learning Centers $209,620 - 0
84.367 Improving Teacher Quality State Grants $164,603 - 0
10.559 Summer Food Service Program for Children $147,566 - 1
84.391 Arra- Special Education- Grants to States $86,340 Yes 0
84.173 Special Education_preschool Grants $76,240 Yes 0
84.424 Student Support and Academic Enrichment Program $48,450 - 0
84.365 English Language Acquisition State Grants $37,644 - 0
84.392 Arra- Special Education- Preschool Grants $13,282 Yes 0

Contacts

Name Title Type
E5FXPD2HUHF5 Amanda Verba Auditee
6072742271 Duane Shoen 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 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. 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 District's 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, 2022, the School District received $120,638 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
Section III 2022-001 Net Cash Resources - Child Nutrition Cluster (CFDA #10.553, 10.555, and 10.559) Federal Award Findings and Questioned Costs Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit by $352,026. 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/Effect: Expenditures in the School Lunch Fund were higher in the 2021-2022 fiscal year by 17.0% due to the return of students after the effects of the COVID-19 pandemic. As a result, the base used to calculate the allowable limit was considerably reduced. Also contributing to the excess cash resources was the higher federal reimbursement amounts, causing a 19.0% increase in revenue. As a result, School District is not in compliance with 7 CFR ?210.19(a). Prior Year Finding: This is a repeat finding, and was previously reported as 2021-002. 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. Management Response: The School District will review the financial activity with the School Nutrition Department to determine the best use of the surplus funds. Once the true scope of the alarming food supply chain and labor force issues are realized and addressed, funds will be used to support the purchasing of much needed equipment that will replace items that have reached their end of useful life. These purchases will support the ongoing capital work to replace equipment that would not be elilgible for New York State aid.
Finding 2022-001
Section III 2022-001 Net Cash Resources - Child Nutrition Cluster (CFDA #10.553, 10.555, and 10.559) Federal Award Findings and Questioned Costs Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit by $352,026. 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/Effect: Expenditures in the School Lunch Fund were higher in the 2021-2022 fiscal year by 17.0% due to the return of students after the effects of the COVID-19 pandemic. As a result, the base used to calculate the allowable limit was considerably reduced. Also contributing to the excess cash resources was the higher federal reimbursement amounts, causing a 19.0% increase in revenue. As a result, School District is not in compliance with 7 CFR ?210.19(a). Prior Year Finding: This is a repeat finding, and was previously reported as 2021-002. 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. Management Response: The School District will review the financial activity with the School Nutrition Department to determine the best use of the surplus funds. Once the true scope of the alarming food supply chain and labor force issues are realized and addressed, funds will be used to support the purchasing of much needed equipment that will replace items that have reached their end of useful life. These purchases will support the ongoing capital work to replace equipment that would not be elilgible for New York State aid.
Finding 2022-001
Section III 2022-001 Net Cash Resources - Child Nutrition Cluster (CFDA #10.553, 10.555, and 10.559) Federal Award Findings and Questioned Costs Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit by $352,026. 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/Effect: Expenditures in the School Lunch Fund were higher in the 2021-2022 fiscal year by 17.0% due to the return of students after the effects of the COVID-19 pandemic. As a result, the base used to calculate the allowable limit was considerably reduced. Also contributing to the excess cash resources was the higher federal reimbursement amounts, causing a 19.0% increase in revenue. As a result, School District is not in compliance with 7 CFR ?210.19(a). Prior Year Finding: This is a repeat finding, and was previously reported as 2021-002. 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. Management Response: The School District will review the financial activity with the School Nutrition Department to determine the best use of the surplus funds. Once the true scope of the alarming food supply chain and labor force issues are realized and addressed, funds will be used to support the purchasing of much needed equipment that will replace items that have reached their end of useful life. These purchases will support the ongoing capital work to replace equipment that would not be elilgible for New York State aid.
Finding 2022-001
Section III 2022-001 Net Cash Resources - Child Nutrition Cluster (CFDA #10.553, 10.555, and 10.559) Federal Award Findings and Questioned Costs Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit by $352,026. 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/Effect: Expenditures in the School Lunch Fund were higher in the 2021-2022 fiscal year by 17.0% due to the return of students after the effects of the COVID-19 pandemic. As a result, the base used to calculate the allowable limit was considerably reduced. Also contributing to the excess cash resources was the higher federal reimbursement amounts, causing a 19.0% increase in revenue. As a result, School District is not in compliance with 7 CFR ?210.19(a). Prior Year Finding: This is a repeat finding, and was previously reported as 2021-002. 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. Management Response: The School District will review the financial activity with the School Nutrition Department to determine the best use of the surplus funds. Once the true scope of the alarming food supply chain and labor force issues are realized and addressed, funds will be used to support the purchasing of much needed equipment that will replace items that have reached their end of useful life. These purchases will support the ongoing capital work to replace equipment that would not be elilgible for New York State aid.
Finding 2022-001
Section III 2022-001 Net Cash Resources - Child Nutrition Cluster (CFDA #10.553, 10.555, and 10.559) Federal Award Findings and Questioned Costs Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit by $352,026. 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/Effect: Expenditures in the School Lunch Fund were higher in the 2021-2022 fiscal year by 17.0% due to the return of students after the effects of the COVID-19 pandemic. As a result, the base used to calculate the allowable limit was considerably reduced. Also contributing to the excess cash resources was the higher federal reimbursement amounts, causing a 19.0% increase in revenue. As a result, School District is not in compliance with 7 CFR ?210.19(a). Prior Year Finding: This is a repeat finding, and was previously reported as 2021-002. 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. Management Response: The School District will review the financial activity with the School Nutrition Department to determine the best use of the surplus funds. Once the true scope of the alarming food supply chain and labor force issues are realized and addressed, funds will be used to support the purchasing of much needed equipment that will replace items that have reached their end of useful life. These purchases will support the ongoing capital work to replace equipment that would not be elilgible for New York State aid.
Finding 2022-001
Section III 2022-001 Net Cash Resources - Child Nutrition Cluster (CFDA #10.553, 10.555, and 10.559) Federal Award Findings and Questioned Costs Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit by $352,026. 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/Effect: Expenditures in the School Lunch Fund were higher in the 2021-2022 fiscal year by 17.0% due to the return of students after the effects of the COVID-19 pandemic. As a result, the base used to calculate the allowable limit was considerably reduced. Also contributing to the excess cash resources was the higher federal reimbursement amounts, causing a 19.0% increase in revenue. As a result, School District is not in compliance with 7 CFR ?210.19(a). Prior Year Finding: This is a repeat finding, and was previously reported as 2021-002. 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. Management Response: The School District will review the financial activity with the School Nutrition Department to determine the best use of the surplus funds. Once the true scope of the alarming food supply chain and labor force issues are realized and addressed, funds will be used to support the purchasing of much needed equipment that will replace items that have reached their end of useful life. These purchases will support the ongoing capital work to replace equipment that would not be elilgible for New York State aid.