Finding Text
Section III Federal Award Findings and Questioned Costs 10.553, 10.555, 10.559 - 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 $133,286. 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 7 CFR ?210.19(a). Cause: Although expenditures exceeded revenues by $53,357 in the School Lunch Fund for the year ended June 30, 2022, this amount was less than the net income of $340,375 in the school lunch fund for the year ended June 30, 2021. Effect: The School District is not in compliance with 7 CFR ?210.19(a). Repeat Finding: The finding is a repeat of finding 2021-001 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: The School District agrees with condition, cause, and recommendation.