Finding Text
Finding No. 2023-005
Information on the Federal Program
Child Nutrition Cluster
National School Lunch Program Federal Assistance Listing No. 10.555
School Breakfast Program Federal Assistance Listing No. 10.553
Criteria or Specific Requirement
The National School Lunch Program requirement per 7CFR § 210.9b states “School Food Authorities shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service.”
Condition
The School District’s net cash resources exceeded 3 months average expenditures for its nonprofit school food service.
Questioned Costs
Not Applicable.
Context
During our audit of the School District’s food service records, we found that the net cash resources exceeded the 3 months average expenditures by $459,725.10.
Effect
Noncompliance with the requirements of the National School Lunch Program.
Cause
This error was the result of additional grant money received during the fiscal year.
Identification as a Repeat Finding
The condition did not exist in the immediately preceding fiscal year.
Recommendation
That the School District ensure that its net cash resources does not exceed 3 months average expenditures for its nonprofit school food service.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.