Audit 307723

FY End
2023-08-31
Total Expended
$776,360
Findings
2
Programs
3
Year: 2023 Accepted: 2024-05-31

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
399087 2023-231 Significant Deficiency Yes N
975529 2023-231 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $178,906 Yes 0
10.555 National School Lunch Program $26,515 Yes 0
10.559 Summer Food Service Program for Children $8,097 - 0

Contacts

Name Title Type
DXL6MV1YHU83 Shlomo Katz Auditee
7323708200 David Hutman Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation: Accounting Policies: Expenditures reported on the Schedules 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: The School has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedules of expenditures of federal awards and state financial assistance (the Schedules) includes the federal and state grant activity of Bais Yaakov High School of Lakewood. (the School) under programs of the federal government for the year ended August 31, 2023. The information in the schedules are 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 Schedules 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 Program: Accounting Policies: Expenditures reported on the Schedules 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: The School has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Bais Yaakov High School of Lakewood 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 Schedules 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: The School 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 Schedules 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: The School has elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. Management considers events and transaction 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 May 28, 2024 and subsequent events have been evaluated through that date.

Finding Details

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.
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.