Finding Text
Criteria: According to federal regulations 7CFR Part 210.19(a), Schools shall limit its net cash resources to an amount that does not exceed 3 months average expenditures. Condition: The District?s current net cash resources of $566,723 is in excess of its three months average expenditures of $443,634. Cause: The Food Service entity operated under the NSLP Seamless Summer Option and served 100% of meals at the free reimbursement rate. Effect: The failure to limit net cash resources to an amount that does not exceed 3 months of their average expenditures will cause the Food Service entity to lose its Federal Funding for meal claim reimbursements. Context: We calculated the net cash resources using the figures from the District?s adjusted trial balance and compared that amount to the Food Service fund?s 3 months average expenditures to determine if the District had excess net cash resources. Recommendation: We have advised management to resolve the current noncompliance finding by any means necessary that is in compliance with federal regulations. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and will develop a spending plan to reduce its net cash resources below an acceptable level. Audit Follow Up Procedures: We performed follow-up procedures on prior year findings, as reported in the Schedule of Prior Year Findings.