Finding Text
Special Test and Provision 2022-002 Significant Deficiency in Internal Control Over Compliance Federal Program(s) ? National School Breakfast and National School Lunch Program Federal Agency(s) ? United States Department of Agriculture Pass-Through Entity(ies) ? New York State Department of Education CFDA Number(s) ? 10.553, 10.555 Pass-through Number(s) ? N/A Federal Award Year ? June 30, 2022 Condition/context: During the audit of the School's, we noted that the School is maintaining excess reserve levels without an appropriately approved spending plan in place. Criteria: In accordance with the Uniform Guidance Compliance Supplement, the School should not maintain more than 90 days of unspent food program funds. The School should have a plan in place on how such excess funds will be utilized. The plan should be approved by the funding source. Cause: The School's management was unaware of the requirement with respect to excess reserve funds. Effect: The School has a restricted fund balance of $175,909 which is in excess of a 90 day reserve level by $13,379. The school has no approved plan of how utilize these funds in the near future. Auditors? Recommendation: Management should perform quarterly reviews of their reserve levels and modify their expenditure patterns to ensure reserves are maintained within approved limits. The required approvals should be obtained from the funder to expend excess funds. Management?s Response: The School had earmarked the reserve funds for the purchase of additional kitchen equipment associated with its new high school. Due to permit delays the opening of the high school was delayed by a year. Management anticipates that the excess funds will be spent during fiscal year 2023 and the School will be within the 90-day reserve level.