Finding Text
Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster Assistance Listing Numbe:r10.553/10.555/10.559 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 six 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, 2025, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $483,522. At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit by $839,352. Cause: Revenues exceeded expenditures by $103,712 in the School Lunch Fund for the year ended June 30, 2025. 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 was $483,522 at June 30, 2025, and compares with the amount over the allowable limit in year ended June 30, 2024, of $839,352. Repeat Finding: This Finding is a repeat of Finding 2023-002 and 2024-002. 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. Views of Responsible Officials of the Auditee: School District management agrees with condition, cause, and recommendation. With this overage, the School District has purchased new equipment for the cafeteria. Since the district is CEP, there is no option to changing the revenue. The School District will continue upgrading the kitchens with the excess.