Mexico Academy and Central School DistrictLocal Government

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 Entity: 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, 2025, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $264,757. Cause: Although expenditures exceeded revenues by $5,686 in the School Lunch Fund for the year ended June 30, 2025, revenues exceeded expenditures by $231,392 for the year ended June 30, 2024. 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 $1,066,255 in the amount of $264,757 at June 30, 2025 and compares to the amount over the allowable limit in year ended June 30, 2024 of $713,464. Repeat Finding: This finding is a repeat of Finding 2024-001 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 Responsible Officials of the Auditee: The School District agrees with the condition, cause and recommendation.

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 NYS Department of Education in accordance with 7 CFR §210.19(b)(2). Condition: At June 30, 2024, net cash resources in the School Lunch Fund exceeded the allowable limit of cash by $713,464. Cause: Revenues exceeded expenditures by $231,392 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 §210.19(b)(2). Questioned Costs: None. Context: The amount over the allowable limit of $622,739 in the amount of $713,464 at June 30, 2024 and compares to the amount over the allowable limit in year ended June 30, 2023 of $802,540. Repeat Finding: This 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 Responsible Officials of the Auditee: The School District agrees with the 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'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.

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.