Finding 618427 (2022-002)

-
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2022-11-01

AI Summary

  • Core Issue: The School Lunch Fund had excess cash resources of $528,519 as of June 30, 2022, exceeding the allowable limit.
  • Impacted Requirements: This situation violates the requirement to limit net cash resources to no more than 3 months of average expenditures, as outlined in 7 CFR 210.19(a).
  • Recommended Follow-Up: The School District should assess its cash resources and create a plan to reduce them to acceptable levels, potentially by investing in program infrastructure and adjusting lunch prices.

Finding Text

Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $528,519. 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: Revenue exceeded expenditures by $409,114 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: The School Lunch fund has excess fund balance on hand due to the additional reimbursements provided during the COVID-19 pandemic. The District is currently reviewing the programs aging equipment and will create a plan to use these funds to support the program's infrastructure in addition to it facilitating the minimal increases in school lunch prices.

Categories

Cash Management School Nutrition Programs Equipment & Real Property Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $984,958
84.425 Education Stabilization Fund $893,929
84.010 Title I Grants to Local Educational Agencies $503,205
10.553 School Breakfast Program $211,595
84.367 Improving Teacher Quality State Grants $138,539
84.358 Rural Education $65,558
84.424 Student Support and Academic Enrichment Program $60,854
10.649 Pandemic Ebt Administrative Costs $49,477
10.559 Summer Food Service Program for Children $38,230
84.173 Special Education_preschool Grants $18,895
84.027 Special Education_grants to States $1,500