Finding Text
Condition: The School’s net cash resources exceeded 3 months
average expenditures at the end of the year. Criteria:
The school food authority shall limit its net cash resources
to an amount that does not exceed 3 months average
expenditures for its nonprofit school food service.
Cause:
The School did not monitor their net cash resources to
ensure that it not exceed 3 months average expenditures.
Effect of Finding:
After discussions with management, the auditor has
determined that although the school’s net cash resources
exceed the allowed amount in 2023, due to continued
rising costs, future expenditures will exceed revenues
which will reduce the net cash resources to an acceptable
level. As such, we feel that the effects of this finding are
minimal.
Recommendation:
To keep monitoring the net cash resources throughout the
year to ensure it doesn’t exceed three months average
expenditures.
View of Responsible Party and Planned Corrective
Action:
Since being made aware of the issue, the school’s
administrator has begun to routinely monitor the net cash
resources to ensure it does not exceed three months of
average expenditures. As such, the required correction
actions have been implemented.