FAC Explorer

Audit 329235

FY End
2024-06-30
Total Expended
$6.63M
Findings
2
Programs
15
Organization: Phillipsburg School District (NJ)
Year: 2024 Accepted: 2024-11-21
Auditor: Ardito & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
509641 2024-001 - Yes N
1086083 2024-001 - Yes N

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $1.43M Yes 1
84.425 Education Stabilization Fund $1.36M Yes 0
84.010 Title I Grants to Local Educational Agencies $1.16M - 0
84.027 Special Education Grants to States $1.14M - 0
10.553 School Breakfast Program $611,447 Yes 0
84.287 Twenty-First Century Community Learning Centers $239,567 Yes 0
17.259 Wioa Youth Activities $167,070 - 0
93.778 Medical Assistance Program $128,373 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $115,439 - 0
84.365 English Language Acquisition State Grants $56,286 - 0
84.424 Student Support and Academic Enrichment Program $54,711 - 0
97.039 Hazard Mitigation Grant $52,560 - 0
84.173 Special Education Preschool Grants $44,699 - 0
84.048 Career and Technical Education -- Basic Grants to States $42,293 - 0
10.558 Child and Adult Care Food Program $23,718 - 0

Contacts

Name Title Type
VBBLCTJZHST5 Staci Horne Auditee
9084543400 Anthony Ardito Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Federal Awards are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2024-001
Finding 2024-001 Criteria or Specific Requirement: United States Department of Agriculture (USDA) requires that net cash resources for the Child Nutrition Program not exceed three months average expenditures in the food service fund. Condition: Net cash resourses exceeded three months average expenditures. Questioned Costs: N/A Context: Net cash resources of $1,281,078 exceeded three months average expenditures of $872,000 by $409,079. Effect: Excess profits retained in the food service fund. Cause: Increased subsidy rates at the "free" rate of reimbursement for all meals for all children under the age of 18 during COVID-19; Additional Supply Chain Assistance COVID funds during COVID up through present, supply chain restraints for capital investment during and after COVID, coupled with low levels of capital investment during COVID. The prior year excess of net cash resources of $874,981 decreased to $409,079 in the current year due to planned investment in capital and food improvements. Recommendation: The board should reduce net cash resources by purchasing needed equipment, improve food quality, or take other actions to eliminate the excess cash resources in the food service fund.
Finding 2024-001
Finding 2024-001 Criteria or Specific Requirement: United States Department of Agriculture (USDA) requires that net cash resources for the Child Nutrition Program not exceed three months average expenditures in the food service fund. Condition: Net cash resourses exceeded three months average expenditures. Questioned Costs: N/A Context: Net cash resources of $1,281,078 exceeded three months average expenditures of $872,000 by $409,079. Effect: Excess profits retained in the food service fund. Cause: Increased subsidy rates at the "free" rate of reimbursement for all meals for all children under the age of 18 during COVID-19; Additional Supply Chain Assistance COVID funds during COVID up through present, supply chain restraints for capital investment during and after COVID, coupled with low levels of capital investment during COVID. The prior year excess of net cash resources of $874,981 decreased to $409,079 in the current year due to planned investment in capital and food improvements. Recommendation: The board should reduce net cash resources by purchasing needed equipment, improve food quality, or take other actions to eliminate the excess cash resources in the food service fund.