FAC Explorer

Finding 60068 (2022-001)

- Repeat Finding
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2022-10-27
Audit: 55699
Organization: Susquehanna Valley Central School District (NY)
Auditor: Insero & CO Cpa's LLP

AI Summary

  • Core Issue: The School Lunch Fund has net cash resources exceeding the limit by $278,875 as of June 30, 2022.
  • Impacted Requirements: Compliance with 7 CFR ?210.19(a) requires limiting net cash resources to no more than 3 months of average expenditures.
  • Recommended Follow-Up: The School District should create a plan to reduce net cash resources to meet the allowable limit.

Finding Text

10.553, 10.555 - Child Nutrition Cluster 2022-001 Net Cash Resources Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $278,875. 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 ?210.19(a). Cause: Revenues exceeded expenditures by $276,421 in the School Lunch Fund for the year ended June 30, 2022. Effect: The School District is not in compliance with 7 CFR ?210.19(a). 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: The School District agrees with condition, cause, and recommendation.

Corrective Action Plan

Corrective Action Plan: The District recognizes that due to increased reimbursement during the past few years, the District has an excess of cash on hand over the permitted levels. Over the course of the 2022-23 school year, the District will review the program needs to develop a strategy to utilize these funds by the food service program. It is anticipated that food costs will continue to rise, the excess funds will allow these increases to be absorbed by the food service program. In addition, we will assess any equipment needs for items directly serving the program. Every effort will be made to use these excess funds as effectively as possible. The assessment of equipment needs will be done in conjunction with a planned Capital Project scheduled for a public vote in December of 2022.

Categories

School Nutrition Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $2.16M
10.555 National School Lunch Program $810,673
84.010 Title I Grants to Local Educational Agencies $366,926
10.553 School Breakfast Program $216,463
84.367 Improving Teacher Quality State Grants $62,805
10.649 Pandemic Ebt Administrative Costs $31,694
84.424 Student Support and Academic Enrichment Program $30,951
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $14,327
10.542 Pandemic Ebt Food Benefits $2,404
84.027 Special Education_grants to States $2,138
84.173 Special Education_preschool Grants $1,500