FAC Explorer

Audit 29443

FY End
2022-06-30
Total Expended
$1.62M
Findings
2
Programs
14
Organization: Borough of Pitman School District (NJ)
Year: 2022 Accepted: 2023-02-28
Auditor: Holt McNally & Associates INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
29056 2022-001 - Yes P
605498 2022-001 - Yes P

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $511,539 Yes 1
84.027A Special Education_grants to States $346,271 - 0
10.553 School Breakfast Program $242,663 Yes 0
84.425U Education Stabilization Fund $88,000 - 0
93.778 Medical Assistance Program $51,172 - 0
84.367 Improving Teacher Quality State Grants $35,820 - 0
10.555 Covid-19 National School Lunch Program $28,144 Yes 0
84.173A Special Education_preschool Grants $14,432 - 0
84.027X Special Education_grants to States $11,814 - 0
84.425D Education Stabilization Fund $10,461 - 0
84.010 Title I Grants to Local Educational Agencies $6,544 - 0
10.555 Food Distributuon Program $3,846 Yes 0
10.649 Pandemic Ebt Administrative Costs $1,242 - 0
84.365 English Language Acquisition State Grants $825 - 0

Contacts

Name Title Type
SNKFB7EF57G2 Carisa Rose Auditee
8565890369 David McNally Auditor
No contacts on file

Notes to SEFA

Title: Note 3. Relationship to Basic Financial Statements Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance present the activity of all federal awards and state financial assistance programs of the Pitman Borough School District. The School District is defined in Note 1 of the basic financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMBs Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies is included on the schedule of expenditures of federal awards and state financial assistance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Revenues and expenditures reported under the Food Distribution Program represent current year value received and current year distributions respectively. The amount reported as TPAF Pension Contributions represents the amount paid by the state on behalf of the School District for the year ended June 30, 2022. TPAF Social Security Contributions represents the amount reimbursed by the state for the employers share of social security contributions for TPAF members for the year ended June 30, 2022. The basic financial statements present the general fund and special revenue fund on a GAAP basis. Budgetary comparison statements or schedules (RSI) are presented for the general fund and special revenue fund to demonstrate finance-related legal compliance in which certain revenue is permitted by law or grant agreement to be recognized in the audit year, whereas for GAAP reporting, revenue is not recognized until the subsequent year or when expenditures have been made. The general fund is presented in the accompanying schedules on the modified accrual basis with the exception of the revenue recognition of the one or more deferred June state aid payments in the current budget year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes payments are not recognized until the subsequent budget year due to the state deferral and recording of the one or more June state aid payments in the subsequent year. The special revenue fund is presented in the accompanying schedules on the grant accounting budgetary basis, which recognizes encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basis does not. The special revenue fund also recognizes the one or more state aid June payments in the current budget year, consistent with N.J.S.A. 18A:22-4.2.
Title: Note 4. Relationship to Federal and State Financial Reports Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance present the activity of all federal awards and state financial assistance programs of the Pitman Borough School District. The School District is defined in Note 1 of the basic financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMBs Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies is included on the schedule of expenditures of federal awards and state financial assistance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Revenues and expenditures reported under the Food Distribution Program represent current year value received and current year distributions respectively. The amount reported as TPAF Pension Contributions represents the amount paid by the state on behalf of the School District for the year ended June 30, 2022. TPAF Social Security Contributions represents the amount reimbursed by the state for the employers share of social security contributions for TPAF members for the year ended June 30, 2022. Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.
Title: Note 5. Federal and State Loans Outstanding Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance present the activity of all federal awards and state financial assistance programs of the Pitman Borough School District. The School District is defined in Note 1 of the basic financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMBs Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies is included on the schedule of expenditures of federal awards and state financial assistance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Revenues and expenditures reported under the Food Distribution Program represent current year value received and current year distributions respectively. The amount reported as TPAF Pension Contributions represents the amount paid by the state on behalf of the School District for the year ended June 30, 2022. TPAF Social Security Contributions represents the amount reimbursed by the state for the employers share of social security contributions for TPAF members for the year ended June 30, 2022. The Pitman Borough School District had no loan balances outstanding at June 30, 2022.

Finding Details

Finding 2022-001
Finding 2022-001: Criteria or Specific Requirement: The New Jersey Department of Agriculture requires a School Food Authority to maintain a nonprofit School Food Service. The nonprofit status of the School Food Service is determined by evaluating net cash resources, which may not exceed three months average expenditures. Condition: Net cash resources in the Food Service Fund exceeded three months average expenditures. Questioned Costs: None. Context: Utilizing the U.S.A. net cash resources calculation form, it was determined that the District?s net cash resources exceeded the three months average expenditures by $208,752 as of June 30, 2022. Effect: The New Jersey Department of Agriculture requirement regarding Net Cash Resources was not met. Cause: Due to the Public Health Emergency, all meals provided were eligible for reimbursement, causing a significant increase in revenues for the District. Recommendation: The District should reduce net cash resources on hand in the Food Service Fund through capital expenditures or other improvements to the Food Service Program. Views of responsible officials and planned corrective action: Management agrees with the above finding and will take necessary corrective action.
Finding 2022-001
Finding 2022-001: Criteria or Specific Requirement: The New Jersey Department of Agriculture requires a School Food Authority to maintain a nonprofit School Food Service. The nonprofit status of the School Food Service is determined by evaluating net cash resources, which may not exceed three months average expenditures. Condition: Net cash resources in the Food Service Fund exceeded three months average expenditures. Questioned Costs: None. Context: Utilizing the U.S.A. net cash resources calculation form, it was determined that the District?s net cash resources exceeded the three months average expenditures by $208,752 as of June 30, 2022. Effect: The New Jersey Department of Agriculture requirement regarding Net Cash Resources was not met. Cause: Due to the Public Health Emergency, all meals provided were eligible for reimbursement, causing a significant increase in revenues for the District. Recommendation: The District should reduce net cash resources on hand in the Food Service Fund through capital expenditures or other improvements to the Food Service Program. Views of responsible officials and planned corrective action: Management agrees with the above finding and will take necessary corrective action.