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 6 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, 2025, net cash resources in the School Lunch Fund exceeded the allowable limit by $453,135. Cause: Expenditures exceeded revenues by $19,527 in the School Lunch Fund for the year ending June 30, 2025. Revenues exceeded expenditures by $97,825 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 §210.19(a). Questioned Costs: None. Context: The School District has been over the limit in prior years. At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit cash by $678,556. Repeat Finding: The finding is a repeat of finding 2024-001 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. 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 School 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 August 31, 2026. Retained Balance for Pending Settlements - Wages will increase into 2026 and beyond. The minimum wage in New York State is expected to continue to rise according to legislation. The rate will rise to $16.00 per hour by the end of 2025 and to $16.50 per hour by the end of 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 School District recently increased hourly wages for food service helpers and cooks in order to attract additional workers to maintain operations. Enhanced Meals - The Food Service Director and Food Service Manager 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 School 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 August 31, 2026.