Finding 38774 (2022-002)

- Repeat Finding
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2022-10-30

AI Summary

  • Core Issue: The School Lunch Fund has excess cash resources of $504,606, exceeding the allowable limit.
  • Impacted Requirements: This situation violates the compliance standard set by 7 CFR ?210.19(a), which limits cash resources to three months of average expenditures.
  • Recommended Follow-Up: The School District should assess its cash resources and create a plan to bring them within the allowable limit.

Finding Text

Section III Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $504,606. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed 3 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 ?210.19(a). Cause: Revenues exceeded expenditures by $197,131 in the School Lunch Fund for the year ended June 30, 2022. Effect: The School District is not in compliance with 7 CFR ?210.19(a). 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: Due to the Pandemic, the school lunch program created different kinds of meals than would normally be provided with in-person breakfast and lunches. The prepared meals needed to be easily portable and produced in mass quantities all at the same time, resulting in less expense for cost of meals. Now that students are back in person, regular cooked meals will be prepared with an increase in expense. Salaries for school lunch employees have also been increasing year after year due to the increase of minimum wage in New York State. The minimum wage is expected to gradually increase to $15 per hour over the next few years. The School District does have a practice of transferring BOCES aid gained from the cost of the BOCES management contract to the School Lunch Fund; the aid will not be transferred in upcoming years.

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $914,983
10.555 National School Lunch Program $437,791
84.027 Special Education_grants to States $351,365
84.010 Title I Grants to Local Educational Agencies $334,753
10.553 School Breakfast Program $143,033
84.287 Twenty-First Century Community Learning Centers $116,066
93.276 Drug-Free Communities Support Program Grants $85,727
84.367 Improving Teacher Quality State Grants $46,883
10.649 Pandemic Ebt Administrative Costs $22,956
84.424 Student Support and Academic Enrichment Program $19,950
84.173 Special Education_preschool Grants $12,889
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $12,618
10.559 Summer Food Service Program for Children $12,322