Finding Text
Condition: The School’s net cash resources exceeded 3 months
average expenditures at the end of the year. Criteria:
The school food authority shall limit its net cash
resources to an amount that does not exceed 3 months
average expenditures for its nonprofit school food
service.
Cause:
The School did not monitor their net cash resources to
ensure that it not exceed 3 months average
expenditures.
Effect of Finding:
After discussions with management, the auditor has
determined that although the School’s net cash
resources exceed the allowed amount in 2023, due to
continued rising costs, future expenditures will exceed
revenues which will reduce the net cash resources to an
acceptable level. As such, we feel that the effects of this
finding are minimal.
Recommendation:
To keep monitoring the net cash resources throughout
the year to ensure it doesn’t exceed three months
average expenditures.
View of Responsible Party and Planned Corrective
Action:
Since being made aware of the issue, the School’s
administrator has begun to routinely monitor the net
cash resources to ensure it does not exceed three
months of average expenditures. As such, the required
correction actions have been implemented.