Finding Text
Finding 2023-001
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 three months' averageexpenditures for its School Lunch Fund or such other amount as may be approved by the New York State agency inaccordance with 7 CFR §210.9(b)(2).
Condition: At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit by $171,964.
Cause: Although expenditures exceeded revenues by $974 in the School Lunch Fund for the year ended June 30, 2023, this amount was less than the net income of $197,424 in the School Lunch Fund for the year ended June 30, 2022.
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 of $273,608 in the amount of $171,964 at June 30, 2023, and compares with theamounts over the allowable limit in years ended June 30, 2022 and 2021 of $217,396 and $70,494, respectively.Supply chain issues have compounded the issue, with $46,186 in outstanding encumbrances at June 30, 2023.
Repeat Finding: The finding is a repeat of finding 2022-001 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 the Responsible Officials of the Auditee:
The School District agrees with condition, cause, and recommendation.