Finding Text
Finding 2024-002
Issue: Net Cash Resources
Federal Agency: U.S. Department of Agriculture
Federal Program: Child Nutrition Cluster
Assistance Listing Number: 10.553/10.555/10.559
Pass-Through Agency: NYS Department of Education Condition:
At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit cash
by $839,352.
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 §210.19(a).
Cause/Effect:
The School District received a significant increase in the State reimbursements rate in the current
year, outpacing the increase in expenses and contributing to an overall increase in the surplus for
2024. As a result, the School District continues to be out of compliance with 7 CFR §210.19(a).
Questioned Costs:
None known.
Context:
The School District was over the allowable limit by $839,352 at year end June 30, 2024, and
increase of $183,635 from last year’s overage of $655,717.
Repeat Finding:
The finding is a repeat of finding 2023-002 from the prior year.
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.
Management Response:
School District management agrees with condition, cause, and recommendation. With this
overage, the School District has purchased some new equipment for the cafeteria. Since the
School District is CEP, there is no option to changing the revenue. The School District will
continue upgrading the kitchens with the excess.