Finding Text
Section III Federal Award Findings and Questioned Costs Finding 2023-001 Issue: Net Cash Resources
Federal Agency: U.S. Department of Agriculture
Federal Program: Child Nutrition Cluster
Assistance Listing Number: 10.553/10.555/10.559
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 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 cash by $305,825. Cause: Revenues exceeded expenditures for the years ended June 30, 2022 and 2021 by $302,895 and $492,968,
respectively. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.19(b)(2). Questioned Costs:
None. Context: The amount over the allowable limit of $507,212 in the amount of $201,387 at June 30, 2023, and compares with the
amounts over the allowable limit in years ended June 30, 2022 and 2021 of $420,899 and $476,480, respectively.
Furthermore, supply chain issues have compounded the School District’s ability to spend down excess funds, with
$161,731 in outstanding encumbrances within its School Lunch Fund. Repeat Finding: The 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.