Finding Text
Federal Award Findings and Questioned Costs 2023-002 School Food Account - Net Cash Resources 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 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 7 CFR §210.19(a). Condition: At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit by $596,010. Cause: Revenues exceeded expenditures by $116,899 and $292,661 in the School Lunch Fund for the years ended
June 30, 2023 and 2022, respectively. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.19(a). Questioned Costs: None. Context: The School District has been over the limit in prior years. At June 30, 2022, net cash resources in the School
Lunch Fund exceeded the allowable limit cash by $500,599. Repeat Finding: The finding is a repeat of finding 2022-002 from the prior year. Recommendation:
Response:
The School District has begun taking action to address this issue, as follows:
Equipment Improvement - School Food Service Director, Joe Kilmer, Food Service Manager, Ann
Overhiser, and the School Business Administrator have plans to improve and replace cafeteria equipment. The
replacement plan will be completed in conjunction with the District’s upcoming Capital Project. This work was
originally expected to be included in a prior project but due to scheduling issues, is now included in the
upcoming project which is expected to be completed by June 30, 2025.
Retained Balance for Pending Settlements - Increased wages (extending into 2023 and beyond) The minimum
wage in New York State is expected to continue to rise over the next several years according to legislation.
The rate will rise to $15 per hour by the end of 2023. Annual increases will continue until the rate reaches
$16.00 per hour in 2026. Annual increases will be published by the Commissioner of Labor and based on a
number of economic factors. Due to the critical labor shortage, the District recently increased hourly wages for
food service helpers and cooks in order to attract additional workers to maintain operations.
Enhanced Meals - Food Service Director Joseph Kilmer and Food Service Manager, Ann Overhiser, continue
to take steps to improve food options. They include making improvements to center of the plate options and
improving local food options as well. In addition, the District plans to spend a portion of the School Lunch
excess cash on cafeteria equipment as a part of its upcoming Capital Project which is expected to be
completed by June 30, 2025.
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 7 CFR §210.19(a).
At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit by $596,010.
2023-002 School Food Account - Net Cash Resources
Revenues exceeded expenditures by $116,899 and $292,661 in the School Lunch Fund for the years ended
June 30, 2023 and 2022, respectively.
The School District is not in compliance with 7 CFR §210.19(a).
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.