Finding Text
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.