Chenango Forks Central School DistrictLocal Government

Finding 2024-001 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 New York State agency in accordance with 7 CFR §210.9(b)(2). Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit by $48,435. Cause: Although expenditures exceeded revenues by $49,900 in the School Lunch Fund for the year ended June 30, 2024. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.9(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $351,254 in the amount of $48,435 at June 30, 2024, and compares with the amounts over the allowable limit in years ended June 30, 2023 and 2022 of $171,964 and $217,296, respectively. Repeat Finding: The finding is a repeat of finding 2023-001 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. Views of the Responsible Officials of the Auditee: The School District agrees with condition, cause, and recommendation.

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' averageexpenditures for its School Lunch Fund or such other amount as may be approved by the New York State agency inaccordance with 7 CFR §210.9(b)(2). Condition: At June 30, 2023, net cash resources in the School Lunch Fund exceeded the allowable limit by $171,964. Cause: Although expenditures exceeded revenues by $974 in the School Lunch Fund for the year ended June 30, 2023, this amount was less than the net income of $197,424 in the School Lunch Fund for the year ended June 30, 2022. Effect or Potential Effect: The School District is not in compliance with 7 CFR §210.9(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $273,608 in the amount of $171,964 at June 30, 2023, and compares with theamounts over the allowable limit in years ended June 30, 2022 and 2021 of $217,396 and $70,494, respectively.Supply chain issues have compounded the issue, with $46,186 in outstanding encumbrances at June 30, 2023. Repeat Finding: The finding is a repeat of finding 2022-001 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. Views of the Responsible Officials of the Auditee: The School District agrees with condition, cause, and recommendation.

2022-001 Net Cash Resources 10.553, 10.555, 10.559 - Child Nutrition Cluster Condition: At June 30, 2022, net cash resources in the School Lunch Fund exceeded the allowable limit by $217,396. 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 7 CFR ?210.19(a). Cause: Revenues exceeded expenditures by $197,424 in the School Lunch Fund for the year ended June 30, 2022, and no interfund transfer from the General Fund was needed. Expenditures in the School Lunch Fund were 32% higher in the 2021-2022 fiscal year due to COVID-19. As a result, the base used to calculate the allowable limit was considerably increased. Also contributing to the excess cash resources was an excess of revenues over expenditures. Effect: The School District is not in compliance with 7 CFR ?210.19(a). Repeat Finding: The finding is a repeat of findingThe 2021-001 from the prior year. Recommendation: Management Response: The School District agrees with condition, cause, and 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.

Condition: At June 30, 2021, net cash resources in the school lunch fund exceeded the allowable limit by $70,494. 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: Revenues exceeded expenditures by $10,818 in the school lunch fund for the year ended June 30, 2021, and no interfund transfer from the General Fund was needed. Expenditures in the School Lunch Fund were less in the 2020-2021 fiscal year by 13% 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 excess of revenues over expenditures. Effect: The School District is not in compliance with 7 CFR ?210.19(a).

Condition: At June 30, 2020, net cash resources in the school lunch fund exceeded the allowable limit cash by $11,381. 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: Revenues exceeded expenditures by $18,756 in the school lunch fund for the year ended June 30, 2020. 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. Management Response: The School District agrees with condition, cause, and recommendation.