Finding 35624 (2022-005)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-05-22

AI Summary

  • Core Issue: The District has excess cash resources of $197,164 beyond the allowed limit for its nonprofit school food service.
  • Impacted Requirements: This violates 7 CFR Section 210.14(b), which restricts net cash resources to three months' average expenditures.
  • Recommended Follow-Up: The District should monitor food service profits, ensure all allowable expenditures are charged, and create a plan to utilize the excess cash reserves.

Finding Text

Criteria: According to 7 CFR Section 210.14(a), a school food authority shall maintain a nonprofit school food service. In addition, 7 CFR Section 210.14(b) states that the school food service authority shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: The District has food service net cash resources in excess of the three month average expenditure carryover limit. Questioned Costs: None. Context: The District has net cash resources of $262,147, and the three month average expenditures is $64,983, resulting in excess net cash resources of $197,164. Effect: The District has earned $197,164 in its food service program in excess of what is allowed. Cause: The District was previously unaware of the requirements, and was not charging all of the expenditures allowable to operate the food service program to the program. Recommendation: We recommend that the District monitor the profit made by the food service program. All allowable expenditures used to operate the program should be charged to the program. In addition, the District needs to adopt a plan to spend the accumulated cash reserves. Management's Response: The cafeteria will be billed indirect cost items based on the rate provided by the Illinois State Board of Education. The cafeteria will also make a plan to spend the carryover amount.

Categories

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Other Findings in this Audit

  • 35620 2022-005
    Material Weakness
  • 35621 2022-005
    Material Weakness
  • 35622 2022-005
    Material Weakness
  • 35623 2022-005
    Material Weakness
  • 35625 2022-006
    Material Weakness
  • 35626 2022-007
    Significant Deficiency
  • 35627 2022-006
    Material Weakness
  • 35628 2022-007
    Significant Deficiency
  • 612062 2022-005
    Material Weakness
  • 612063 2022-005
    Material Weakness
  • 612064 2022-005
    Material Weakness
  • 612065 2022-005
    Material Weakness
  • 612066 2022-005
    Material Weakness
  • 612067 2022-006
    Material Weakness
  • 612068 2022-007
    Significant Deficiency
  • 612069 2022-006
    Material Weakness
  • 612070 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $106,051
10.553 School Breakfast Program $55,958
10.555 National School Lunch Program $30,775
84.358 Rural Education $24,385
84.010 Title I Grants to Local Educational Agencies $20,000
84.367 Improving Teacher Quality State Grants $16,626
10.560 State Administrative Expenses for Child Nutrition $11,538
84.424 Student Support and Academic Enrichment Program $10,000
93.778 Medical Assistance Program $8,603
84.425 Education Stabilization Fund $4,470
84.173 Special Education_preschool Grants $4,083
10.649 Pandemic Ebt Administrative Costs $614