Audit 301759

FY End
2022-06-30
Total Expended
$872,082
Findings
2
Programs
2
Organization: Bais Reuven Kamenitz (NJ)
Year: 2022 Accepted: 2024-04-01

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
391162 2022-221 Significant Deficiency - I
967604 2022-221 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $547,152 Yes 1
10.553 School Breakfast Program $324,930 Yes 0

Contacts

Name Title Type
K1VUFJ1ZKZR3 Avraham Rabin Auditee
7323630579 David Hutman Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation: Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Bais Reuven Kamenetz of Lakewood, Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Bais Reuven Kamenetz of Lakewood, Inc. (the School) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School.
Title: Child Nutrition Programs: Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Bais Reuven Kamenetz of Lakewood, Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Bais Reuven Kamenetz of Lakewood, Inc. was approved by the State of New Jersey’s Department of Agriculture, under the National School Lunch Act and Child Nutrition Act of 1966, to operate the Food Nutrition Program which includes both the School Breakfast Program and the National School Lunch Program.
Title: Use of Estimates: Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Bais Reuven Kamenetz of Lakewood, Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Title: Subsequent Events: Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Bais Reuven Kamenetz of Lakewood, Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Management considers events and transactions that occur after the financials statement date, but before the financial statements are issued, to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. These financial statements were available to be issued on March 23, 2023, and subsequent events have been evaluated through that date.

Finding Details

Condition: The School did not document the procurement process according to the procurement standards as codified under OMB Circular 2 CFR 200. Criteria: The School is required to follow certain procurement procedures including maintaining records of its procurement history and following the requirements of each procurement method being used. Cause: The School did not have clear communication with its employees about the division of responsibility relating to procurement and, although procurement was in fact done, the School failed to document it properly. Effect of Finding: After discussions with management, the auditor has determined that although the School failed to document the procurement process properly, they were in fact following the required procurement process as codified under OMB Circular 2 CFR. As such, the effects of this deficiency are minimal. 10 Recommendation: To ensure that each employee involved in the procurement process has a clear understanding of their responsibilities to ensure that the procurement process is documented properly. View of Responsible Party and Planned Corrective Action: Since being made aware of the issue, the school’s administrator has begun to routinely monitor the net cash resources to ensure it does not exceed three months of average expenditures. As such, the required correction actions have been implemented.
Condition: The School did not document the procurement process according to the procurement standards as codified under OMB Circular 2 CFR 200. Criteria: The School is required to follow certain procurement procedures including maintaining records of its procurement history and following the requirements of each procurement method being used. Cause: The School did not have clear communication with its employees about the division of responsibility relating to procurement and, although procurement was in fact done, the School failed to document it properly. Effect of Finding: After discussions with management, the auditor has determined that although the School failed to document the procurement process properly, they were in fact following the required procurement process as codified under OMB Circular 2 CFR. As such, the effects of this deficiency are minimal. 10 Recommendation: To ensure that each employee involved in the procurement process has a clear understanding of their responsibilities to ensure that the procurement process is documented properly. View of Responsible Party and Planned Corrective Action: Since being made aware of the issue, the school’s administrator has begun to routinely monitor the net cash resources to ensure it does not exceed three months of average expenditures. As such, the required correction actions have been implemented.