Finding Text
Section III Federal Award Findings and Questioned Costs 2022-002 Net Cash Resources Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit cash by $509,953. 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 New York State agency in accordance with ?210.19(a). Cause/Effect: Expenditures in the School Lunch Fund were less in the 2021-2022 fiscal year due to COVID-19. As a result, the base used to calculate the allowable limit was considerably reduced. Also contributing to the excess cash resources was an increase in the reimbursement rates, causing a 25% increase in revenue. As a result, the School District is not in compliance with 7 CFR ?210.19(a). Repeat Finding: The finding is a repeat of finding 2021-002 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. Management Response: School District management agrees with condition, cause and recommendation. With this overage, the district has purchased 2 ice machines, a sixteen crate cooler, hot water dispenser and some office furniture. It is also the expectation that the reimbursement rate will be reduced for the 2023 year.