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Audit 309190

FY End
2023-06-30
Total Expended
$21.36M
Findings
10
Programs
15
Organization: City of Orange Township Public Schools (NJ)
Year: 2023 Accepted: 2024-06-18
Auditor: Pkf O'Connor Davies

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401141 2023-004 Significant Deficiency - AB
401142 2023-004 Significant Deficiency - AB
401143 2023-004 Significant Deficiency - AB
401144 2023-004 Significant Deficiency - AB
401145 2023-004 Significant Deficiency - AB
977583 2023-004 Significant Deficiency - AB
977584 2023-004 Significant Deficiency - AB
977585 2023-004 Significant Deficiency - AB
977586 2023-004 Significant Deficiency - AB
977587 2023-004 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $1.17M - 0
93.778 Medical Assistance Program $404,835 - 0
10.555 National School Lunch Program $365,768 - 0
84.287 Twenty-First Century Community Learning Centers $294,368 - 0
84.367 Improving Teacher Quality State Grants $251,242 - 0
84.010 Title I Grants to Local Educational Agencies $218,852 - 0
84.424 Student Support and Academic Enrichment Program $177,480 - 0
10.588 Assessment of Alternatives to Face-to-Face Interviews in Snap $124,362 - 0
84.027 Special Education_grants to States $99,171 - 0
10.582 Fresh Fruit and Vegetable Program $81,419 - 0
84.365 English Language Acquisition State Grants $65,121 - 0
84.048 Career and Technical Education -- Basic Grants to States $35,903 - 0
84.173 Special Education_preschool Grants $26,498 - 0
84.425 Education Stabilization Fund $7,922 Yes 1
10.185 Local Food for Schools Cooperative Program $2,737 - 0

Contacts

Name Title Type
L91ELRSSED25 Jason Ballard Auditee
9736774000 Scott Clelland Auditor
No contacts on file

Notes to SEFA

Title: Relationship to Basic Financial Statements Accounting Policies: General The accompanying schedules of expenditures of federal awards and state financial assistance include the federal award and state financial assistance activity under programs of federal and state government for the year ended June 30, 2023. The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies are included on the schedules of expenditures of federal awards and state financial assistance. Basis of Presentation The accompanying schedules of expenditures of federal awards and state financial assistance include the federal award and state financial assistance activity under programs of the federal and state government for the year ended June 30, 2023. The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the schedules of expenditures of federal awards and state financial assistance. The information in these schedules are presented in accordance with the requirements of 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in the schedules may differ from amounts presented, or used in the preparation of, the basic financial statements because the schedules present only selected portions of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. Amounts reported in the accompanying schedules agree with amounts reported in the District’s basic financial statements. The basic financial statements present the general fund and special revenue fund on a GAAP basis. Budgetary comparison statements and 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 fiscal 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 of accounting with the exception of the revenue recognition of the two last state aid payments in the current year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes those payments are not recognized until the subsequent year due to the state deferral and recording of the last 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 last state aid payments in the current budget year, consistent with NJSA 18A:22-44.2. As a result, the federal accounts receivable balance in the special revenue fund on the budgetary basis differs from the GAAP basis as follows: Accounts Budgetary Less Less Deferred State Receivable Basis Encumbrances Aid Payments GAAP Basis Federal $10,613,780 $3,646,982 $6,966,798 State $5,510,940 $2,049,288 $1,105,214 $2,356,438 The net adjustment to reconcile from the budgetary basis to the GAAP basis is $974,289 for the general fund and $4,116,523 for the special revenue fund. See Note to Required Supplementary Information for a reconciliation of the budgetary basis to the modified accrual basis of accounting for the general and special revenue funds. Federal and State award revenues are reported in the District’s basic financial statements on a GAAP basis as follows: Federal State Total General Fund $404,835 $126,981,844 $127,386,679 Special Revenue Fund 14,364,458 12,164,480 26,528,938 Capital Projects Fund 7,049,954 7,049,954 Food Service Enterprise Fund 4,231,444 97,323 4,328,767 Total award revenues $19,000,737 $146,293,601 $165,294,338
Title: Relationship to Federal and State Financial Reports Accounting Policies: General The accompanying schedules of expenditures of federal awards and state financial assistance include the federal award and state financial assistance activity under programs of federal and state government for the year ended June 30, 2023. The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies are included on the schedules of expenditures of federal awards and state financial assistance. Basis of Presentation The accompanying schedules of expenditures of federal awards and state financial assistance include the federal award and state financial assistance activity under programs of the federal and state government for the year ended June 30, 2023. The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the schedules of expenditures of federal awards and state financial assistance. The information in these schedules are presented in accordance with the requirements of 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in the schedules may differ from amounts presented, or used in the preparation of, the basic financial statements because the schedules present only selected portions of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.
Title: School-wide Program Funds Accounting Policies: General The accompanying schedules of expenditures of federal awards and state financial assistance include the federal award and state financial assistance activity under programs of federal and state government for the year ended June 30, 2023. The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies are included on the schedules of expenditures of federal awards and state financial assistance. Basis of Presentation The accompanying schedules of expenditures of federal awards and state financial assistance include the federal award and state financial assistance activity under programs of the federal and state government for the year ended June 30, 2023. The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the schedules of expenditures of federal awards and state financial assistance. The information in these schedules are presented in accordance with the requirements of 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in the schedules may differ from amounts presented, or used in the preparation of, the basic financial statements because the schedules present only selected portions of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. School-wide programs are not separate Federal programs as defined in the Uniform Guidance; amounts used in school-wide programs are included in the total expenditures of the program contributing the funds in the schedule of expenditures of Federal Awards. The following funds by program are included in school-wide programs in the District. Title I - Part A $706,966 Title II - Part A - Principal and Teacher Training 240,748 Title III - Part A - English Language Acquisition 130,579 Title IV - Part A - Student Support and Academic Enrichment 168,267 $1,246,560
Title: Adjustments Accounting Policies: General The accompanying schedules of expenditures of federal awards and state financial assistance include the federal award and state financial assistance activity under programs of federal and state government for the year ended June 30, 2023. The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies are included on the schedules of expenditures of federal awards and state financial assistance. Basis of Presentation The accompanying schedules of expenditures of federal awards and state financial assistance include the federal award and state financial assistance activity under programs of the federal and state government for the year ended June 30, 2023. The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the schedules of expenditures of federal awards and state financial assistance. The information in these schedules are presented in accordance with the requirements of 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in the schedules may differ from amounts presented, or used in the preparation of, the basic financial statements because the schedules present only selected portions of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. The adjustments presented on schedules K-3 and K-4 are the result of the cancellation of prior year encumbrances and accounts receivable.

Finding Details

Finding 2023-004
During our testing of the ARP ESSER Program, we identified the District was unable to provide support for payroll charges for eight employees, two employees were paid in excess of the board approved maximum and several payroll expenditures did not agree to the support provided. During our testing of Federal grant compliance, we selected a sample of payroll charges submitted for reimbursement and traced to supporting documentation. The District board approves salaried individuals to be charged to the grant, board approves hourly rates and stipends to be charged to the grant and maintains paper timesheets for hourly and stipend employees. The District was unable to provide us with any support that the eight employees identified in our testing were appropriately charged to the grant. The District provided support that two individuals were approved to be paid a maximum amount from the grant. Per review of payroll charges of the grant for the two individuals identified they were paid in excess of the maximum amount approved.
Finding 2023-004
During our testing of the ARP ESSER Program, we identified the District was unable to provide support for payroll charges for eight employees, two employees were paid in excess of the board approved maximum and several payroll expenditures did not agree to the support provided. During our testing of Federal grant compliance, we selected a sample of payroll charges submitted for reimbursement and traced to supporting documentation. The District board approves salaried individuals to be charged to the grant, board approves hourly rates and stipends to be charged to the grant and maintains paper timesheets for hourly and stipend employees. The District was unable to provide us with any support that the eight employees identified in our testing were appropriately charged to the grant. The District provided support that two individuals were approved to be paid a maximum amount from the grant. Per review of payroll charges of the grant for the two individuals identified they were paid in excess of the maximum amount approved.
Finding 2023-004
During our testing of the ARP ESSER Program, we identified the District was unable to provide support for payroll charges for eight employees, two employees were paid in excess of the board approved maximum and several payroll expenditures did not agree to the support provided. During our testing of Federal grant compliance, we selected a sample of payroll charges submitted for reimbursement and traced to supporting documentation. The District board approves salaried individuals to be charged to the grant, board approves hourly rates and stipends to be charged to the grant and maintains paper timesheets for hourly and stipend employees. The District was unable to provide us with any support that the eight employees identified in our testing were appropriately charged to the grant. The District provided support that two individuals were approved to be paid a maximum amount from the grant. Per review of payroll charges of the grant for the two individuals identified they were paid in excess of the maximum amount approved.
Finding 2023-004
During our testing of the ARP ESSER Program, we identified the District was unable to provide support for payroll charges for eight employees, two employees were paid in excess of the board approved maximum and several payroll expenditures did not agree to the support provided. During our testing of Federal grant compliance, we selected a sample of payroll charges submitted for reimbursement and traced to supporting documentation. The District board approves salaried individuals to be charged to the grant, board approves hourly rates and stipends to be charged to the grant and maintains paper timesheets for hourly and stipend employees. The District was unable to provide us with any support that the eight employees identified in our testing were appropriately charged to the grant. The District provided support that two individuals were approved to be paid a maximum amount from the grant. Per review of payroll charges of the grant for the two individuals identified they were paid in excess of the maximum amount approved.
Finding 2023-004
During our testing of the ARP ESSER Program, we identified the District was unable to provide support for payroll charges for eight employees, two employees were paid in excess of the board approved maximum and several payroll expenditures did not agree to the support provided. During our testing of Federal grant compliance, we selected a sample of payroll charges submitted for reimbursement and traced to supporting documentation. The District board approves salaried individuals to be charged to the grant, board approves hourly rates and stipends to be charged to the grant and maintains paper timesheets for hourly and stipend employees. The District was unable to provide us with any support that the eight employees identified in our testing were appropriately charged to the grant. The District provided support that two individuals were approved to be paid a maximum amount from the grant. Per review of payroll charges of the grant for the two individuals identified they were paid in excess of the maximum amount approved.
Finding 2023-004
During our testing of the ARP ESSER Program, we identified the District was unable to provide support for payroll charges for eight employees, two employees were paid in excess of the board approved maximum and several payroll expenditures did not agree to the support provided. During our testing of Federal grant compliance, we selected a sample of payroll charges submitted for reimbursement and traced to supporting documentation. The District board approves salaried individuals to be charged to the grant, board approves hourly rates and stipends to be charged to the grant and maintains paper timesheets for hourly and stipend employees. The District was unable to provide us with any support that the eight employees identified in our testing were appropriately charged to the grant. The District provided support that two individuals were approved to be paid a maximum amount from the grant. Per review of payroll charges of the grant for the two individuals identified they were paid in excess of the maximum amount approved.
Finding 2023-004
During our testing of the ARP ESSER Program, we identified the District was unable to provide support for payroll charges for eight employees, two employees were paid in excess of the board approved maximum and several payroll expenditures did not agree to the support provided. During our testing of Federal grant compliance, we selected a sample of payroll charges submitted for reimbursement and traced to supporting documentation. The District board approves salaried individuals to be charged to the grant, board approves hourly rates and stipends to be charged to the grant and maintains paper timesheets for hourly and stipend employees. The District was unable to provide us with any support that the eight employees identified in our testing were appropriately charged to the grant. The District provided support that two individuals were approved to be paid a maximum amount from the grant. Per review of payroll charges of the grant for the two individuals identified they were paid in excess of the maximum amount approved.
Finding 2023-004
During our testing of the ARP ESSER Program, we identified the District was unable to provide support for payroll charges for eight employees, two employees were paid in excess of the board approved maximum and several payroll expenditures did not agree to the support provided. During our testing of Federal grant compliance, we selected a sample of payroll charges submitted for reimbursement and traced to supporting documentation. The District board approves salaried individuals to be charged to the grant, board approves hourly rates and stipends to be charged to the grant and maintains paper timesheets for hourly and stipend employees. The District was unable to provide us with any support that the eight employees identified in our testing were appropriately charged to the grant. The District provided support that two individuals were approved to be paid a maximum amount from the grant. Per review of payroll charges of the grant for the two individuals identified they were paid in excess of the maximum amount approved.
Finding 2023-004
During our testing of the ARP ESSER Program, we identified the District was unable to provide support for payroll charges for eight employees, two employees were paid in excess of the board approved maximum and several payroll expenditures did not agree to the support provided. During our testing of Federal grant compliance, we selected a sample of payroll charges submitted for reimbursement and traced to supporting documentation. The District board approves salaried individuals to be charged to the grant, board approves hourly rates and stipends to be charged to the grant and maintains paper timesheets for hourly and stipend employees. The District was unable to provide us with any support that the eight employees identified in our testing were appropriately charged to the grant. The District provided support that two individuals were approved to be paid a maximum amount from the grant. Per review of payroll charges of the grant for the two individuals identified they were paid in excess of the maximum amount approved.
Finding 2023-004
During our testing of the ARP ESSER Program, we identified the District was unable to provide support for payroll charges for eight employees, two employees were paid in excess of the board approved maximum and several payroll expenditures did not agree to the support provided. During our testing of Federal grant compliance, we selected a sample of payroll charges submitted for reimbursement and traced to supporting documentation. The District board approves salaried individuals to be charged to the grant, board approves hourly rates and stipends to be charged to the grant and maintains paper timesheets for hourly and stipend employees. The District was unable to provide us with any support that the eight employees identified in our testing were appropriately charged to the grant. The District provided support that two individuals were approved to be paid a maximum amount from the grant. Per review of payroll charges of the grant for the two individuals identified they were paid in excess of the maximum amount approved.