Finding 41983 (2022-002)

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Requirement
C
Questioned Costs
-
Year
2022
Accepted
2022-11-01

AI Summary

  • Core Issue: The School Lunch Fund had excess cash resources of $528,519 as of June 30, 2022, exceeding the allowable limit.
  • Impacted Requirements: This situation violates the requirement to limit net cash resources to no more than 3 months of average expenditures, as outlined in 7 CFR 210.19(a).
  • Recommended Follow-Up: The School District should assess its cash resources and create a plan to reduce them to acceptable levels, potentially by investing in program infrastructure and adjusting lunch prices.

Finding Text

Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $528,519. 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: Revenue exceeded expenditures by $409,114 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: The School Lunch fund has excess fund balance on hand due to the additional reimbursements provided during the COVID-19 pandemic. The District is currently reviewing the programs aging equipment and will create a plan to use these funds to support the program's infrastructure in addition to it facilitating the minimal increases in school lunch prices.

Corrective Action Plan

The School Lunch fund has excess fund balance on hand due to the additional reimbursements provided during the COVID-19 pandemic. The District is currently reviewing the programs aging equipment and will create a plan to use these funds to support the program's infrastructure in addition to it facilitating minimal increases in school lunch prices.

Categories

Cash Management School Nutrition Programs Equipment & Real Property Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $984,958
84.425 Education Stabilization Fund $893,929
84.010 Title I Grants to Local Educational Agencies $503,205
10.553 School Breakfast Program $211,595
84.367 Improving Teacher Quality State Grants $138,539
84.358 Rural Education $65,558
84.424 Student Support and Academic Enrichment Program $60,854
10.649 Pandemic Ebt Administrative Costs $49,477
10.559 Summer Food Service Program for Children $38,230
84.173 Special Education_preschool Grants $18,895
84.027 Special Education_grants to States $1,500