Finding 1205252 (2025-002)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-03-31

AI Summary

  • Core Issue: The School Lunch Fund's net cash resources exceeded the limit by $264,757 as of June 30, 2025.
  • Impacted Requirements: This violates the requirement to keep cash resources within three months' average expenditures per 7 CFR §210.19(b)(2).
  • Recommended Follow-Up: The School District should create a plan to reduce net cash resources to comply with the allowable limit.

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 Entity: 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 §210.19(b)(2). Condition: At June 30, 2025, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $264,757. Cause: Although expenditures exceeded revenues by $5,686 in the School Lunch Fund for the year ended June 30, 2025, revenues exceeded expenditures by $231,392 for the year ended June 30, 2024. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.19(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $1,066,255 in the amount of $264,757 at June 30, 2025 and compares to the amount over the allowable limit in year ended June 30, 2024 of $713,464. Repeat Finding: This 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. Views of Responsible Officials of the Auditee: The School District agrees with the condition, cause and recommendation.

Corrective Action Plan

10.553, 10.555, 10.559 - Child Nutrition Cluster 2025-002 Net Cash Resources Corrective Action Plan The School Lunch Fund continues to have excess fund balance on hand due to the additional reimbursements provided during the COVID-19 pandemic. The School District is currently reviewing the equipment used by the program and will create a plan to use these funds to support the program's infrastructure. Expected Completion Date June 30, 2026 Contact: Jolean Bliss, School Business Executive Mexico Academy and Central School District 16 Fravor Road, Suite A Mexico, NY 13114 (315) 963-8400

Categories

Subrecipient Monitoring School Nutrition Programs

Other Findings in this Audit

  • 1205250 2025-002
    Material Weakness Repeat
  • 1205251 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $1.07M
84.027 SPECIAL EDUCATION GRANTS TO STATES $626,034
10.553 SCHOOL BREAKFAST PROGRAM $284,730
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $41,447
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $38,462
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $20,137
84.425 EDUCATION STABILIZATION FUND $13,635
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $8,929
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $7,792