Finding 975529 (2023-231)

Condition: The School’s net cash resources exceeded 3 months average expenditures at the end of the year. Criteria: The school food authority shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit school food service. Cause: The School did not monitor their net cash resources to ensure that it not exceed 3 months average expenditures. Effect of Finding: After discussions with management, the auditor has determined that although the school’s net cash resources exceed the allowed amount in 2023, due to continued rising costs, future expenditures will exceed revenues which will reduce the net cash resources to an acceptable level. As such, we feel that the effects of this finding are minimal. Recommendation To keep monitoring the net cash resources throughout the year to ensure that it does not exceed three months average expenditures. View of Responsible Party and Planned Corrective Action Since being made aware of the issue, the school’s administrator had begun to routinely monitor the net cash resources to ensure that it does not exceed three months average expenditures. As such, the required corrective actions have been implemented.