Audit 48533

FY End
2022-06-30
Total Expended
$3.12M
Findings
2
Programs
2
Organization: Bais Tova, Inc. (NJ)
Year: 2022 Accepted: 2023-06-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
51720 2022-221 - - N
628162 2022-221 - - N

Programs

ALN Program Spent Major Findings
10.553 School Breakfast Program $1.62M Yes 0
10.555 National School Lunch Program $44,957 Yes 0

Contacts

Name Title Type
LC7BJPKFMG15 Jonathan Sanders Auditee
7329013913 Jacob Hutman Auditor
No contacts on file

Notes to SEFA

Title: Use of Estimates: Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Bais Tova, Inc. has elected to use theten percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The preparation of financial statements in conformity with generally accepted accounting principlesrequires management to make estimates and assumptions that affect certain reported amounts anddisclosures. 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 expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Bais Tova, Inc. has elected to use theten percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Management considers events and transactions that occur after the financials statement date, but beforethe financial statements are issued, to provide additional evidence relative to certain estimates or toidentify matters that require additional disclosure. These financial statements were available to be issuedon March 9, 2023, and subsequent events have been evaluated through that date.
Title: Basis of Presentation: Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Bais Tova, Inc. has elected to use theten percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grantactivity of Bais Tova, Inc. (the School) under programs of the federal government for the year ended June30, 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 AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion 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 expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Bais Tova, Inc. has elected to use theten percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Bais Tova, Inc. was approved by the State of New Jerseys Department of Agriculture, under the NationalSchool Lunch Act and Child Nutrition Act of 1966, to operate the Food Nutrition Program which includesboth the School Breakfast Program and the National School Lunch Program.

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 2021, 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. 10 Recommendation: To keep monitoring the net cash resources throughout the year to ensure it doesn?t exceed three months average expenditures. 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 implement.
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 2021, 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. 10 Recommendation: To keep monitoring the net cash resources throughout the year to ensure it doesn?t exceed three months average expenditures. 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 implement.