Finding Text
Finding 2023-001
Issue: Net Cash Resources
Federal Agency: U.S. Department of Agriculture
Federal Program: Child Nutrition Cluster
Assistance Listing Number: 10.553/10.555
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
three months' average expenditures for its School Lunch Fund or such other amount as may
be approved by the NYS Department of Education in accordance with 7 CFR §210.9(b)(2).
Condition:
At June 30, 2023 net cash resources in the School Lunch Fund exceeded the allowable limit
by $330,970.
Cause:
Revenues including interfund transfers from the General Fund, exceeded expenditures by
$64,287 in the School Lunch Fund for the year ended June 30, 2023.
Effect or Potential Effect:
The School District is not in compliance with 7 CFR §210.9(b)(2).
Questioned Costs:
None.
Context:
The amount over the allowable limit of $292,823 in the amount of $330,970 at June 30, 2023,
and compares with the amounts over the allowable limit in years ended June 30, 2022 and
2021 of $278,875 and $57,905, respectively. Furthermore, supply chain issues have
compounded the School District’s ability to spend down excess funds.
Repeat Finding:
This finding is a repeat of Finding 2022-001 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.
Views of Responsible Officials of the Auditee:
The School District agrees with the condition, cause and recommendation.