Finding Text
Section III Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $504,606. 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 $197,131 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. Response: Due to the Pandemic, the school lunch program created different kinds of meals than would normally be provided with in-person breakfast and lunches. The prepared meals needed to be easily portable and produced in mass quantities all at the same time, resulting in less expense for cost of meals. Now that students are back in person, regular cooked meals will be prepared with an increase in expense. Salaries for school lunch employees have also been increasing year after year due to the increase of minimum wage in New York State. The minimum wage is expected to gradually increase to $15 per hour over the next few years. The School District does have a practice of transferring BOCES aid gained from the cost of the BOCES management contract to the School Lunch Fund; the aid will not be transferred in upcoming years.