Finding 960924 (2023-001)

Finding 2023-001 Issue: Net Cash Resources Federal Agency: U.S. Department of Agriculture Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555/10.559 Pass-Through Agency: NYS Department of Education 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 NYS Department of Education in accordance with 7 CFR §210.19(b)(2). Condition: At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $802,540. Cause: Revenues exceeded expenditures by $298,780 in the School Lunch Fund for the year ended June 30, 2023. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.19(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $300,940 in the amount of $802,540 at June 30, 2023 and compares to the amount over the allowable limit in year ended June 30, 2022 of $528,519. Repeat Finding: This finding is a repeat of Finding 2022-002 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. Views of Responsible Officials of the Auditee: The School District agrees with the condition, cause and recommendation.