Finding Text
Federal Award Findings and Questioned Costs
2024-001 School Food Account - Net Cash Resources I
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 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 7 CFR §210.19(a).
Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit by
$678,556. Cause:Revenues exceeded expenditures by $97,825 and $116,899 in the School Lunch Fund for the
years ended June 30, 2024 and 2023, respectively.
Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.19(a). Questioned Costs: None. Context: The School District has been over the limit in prior years. At June 30, 2023, net cash resources in
the School Lunch Fund exceeded the allowable limit cash by $596,010. 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. Response: The School District has begun taking action to address this issue, as follows: 2024-001 School Food Account - Net Cash Resources - Continued Equipment Improvement - School Food Service Director, Joe Kilmer, Food Service Manager,
Ann Overhiser, and the School Business Administrator have plans to improve and replace
cafeteria equipment. The replacement plan will be completed in conjunction with the School
District’s upcoming Capital Project. This work was originally expected to be included in a prior
project but due to scheduling issues, is now included in the upcoming project which is expected
to be completed by August 31, 2026. Retained Balance for Pending Settlements - Wages will increase into 2025 and beyond. The
minimum wage in New York State is expected to continue to rise according to legislation. The
rate will rise to $15.50 per hour by the end of 2024 and to $16.00 per hour by the end of 2025.
Annual increases will be published by the Commissioner of Labor and based on a number of
economic factors. Due to the critical labor shortage, the School District recently increased hourly
wages for food service helpers and cooks in order to attract additional workers to maintain
operations. Enhanced Meals - The Food Service Director and Food Service Manager continue to take steps
to improve food options. They include making improvements to center of the plate options and
improving local food options as well. In addition, the School District plans to spend a portion of
the School Lunch excess cash on cafeteria equipment as a part of its upcoming Capital Project
which is expected to be completed by August 31, 2026.