Finding Text
Finding 2023-002 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 Condition: At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit cash by $655,717. 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 New York State agency in
accordance with §210.19(a). Cause/Effect: Expenditures in the School Lunch Fund were less in the 2022-2023 fiscal year due to COVID-19. As a result, the base
used to calculate the allowable limit was considerably reduced. Also contributing to the excess cash resources was an
increase in the reimbursement rates, causing a 25% increase in revenue. As a result, the School District is not in
compliance with 7 CFR §210.19(a). Questioned Costs: None known. Context: The amount over the allowable limit of $320,893 in the amount of $655,717 at June 30, 2023, and compares with the
amounts over the allowable limit in years ended June 30, 2022 and 2021 of $509,953 and $260,989, respectively. Repeat Finding: The finding is a repeat of finding 2022-02 from the prior year. 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: School District management agrees with condition, cause, and recommendation. With this overage, the School District has
purchased some new equipment for the cafeteria. Since the School District is CEP, there is no option to changing the
revenue. The School District will continue upgrading the kitchens with the excess.