Finding Text
2022-001 Net Cash Resources 10.553, 10.555, 10.559 - Child Nutrition Cluster Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit by $217,396. 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 New York State agency in accordance with 7 CFR ?210.19(a). Cause: Revenues exceeded expenditures by $197,424 in the School Lunch Fund for the year ended June 30, 2022, and no interfund transfer from the General Fund was needed. Expenditures in the School Lunch Fund were 32% higher in the 2021-2022 fiscal year due to COVID-19. As a result, the base used to calculate the allowable limit was considerably increased. Also contributing to the excess cash resources was an excess of revenues over expenditures. Effect: The School District is not in compliance with 7 CFR ?210.19(a). Repeat Finding: The finding is a repeat of findingThe 2021-001 from the prior year. Recommendation: Management Response: The School District agrees with condition, cause, and 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.