FAC Explorer

Audit 50325

FY End
2022-06-30
Total Expended
$1.56M
Findings
2
Programs
13
Organization: Stratford Borough School District (NJ)
Year: 2022 Accepted: 2023-05-02
Auditor: Holt McNally & Associates INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43647 2022-001 - - P
620089 2022-001 - - P

Programs

ALN Program Spent Major Findings
10.555 Covid-19 National School Lunch Program $339,666 Yes 1
84.027A Special Education_grants to States $284,065 - 0
84.010 Title I Grants to Local Educational Agencies $211,425 - 0
10.553 Covid-19 School Breakfast Program $94,552 Yes 0
21.019 Covid-19 Coronavirus Relief Fund $46,048 - 0
84.425D Covid-19 Education Stabilization Fund $22,000 Yes 0
10.555 National School Lunch Program $15,268 Yes 0
10.555 Covid-19 Emergency Operational Cost Reimbursement $14,880 Yes 0
84.424 Student Support and Academic Enrichment Program $9,721 - 0
93.778 Medical Assistance Program $7,518 - 0
84.425U Covid-19 Education Stabilization Fund $6,773 Yes 0
84.365 English Language Acquisition State Grants $5,328 - 0
10.649 Covid-19 Pandemic Ebt Administrative Costs $1,242 - 0

Contacts

Name Title Type
W2G3NAD6NR83 Debra Trasatti Auditee
8567842917 Michael Holt Auditor
No contacts on file

Notes to SEFA

Title: Note 3: Relationship to Basic Financial Statements Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance present the activity of all federal awards and state financial assistance programs of the Borough of Stratford School District. The School District is defined in Note 1 of the basic financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMBs Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies is included on the schedule of expenditures of federal awards and state financial assistance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Revenues and expenditures reported under the Food Distribution Program represent current year value received and current year distributions respectively. The amount reported as TPAF Pension Contributions represents the amount paid by the state on behalf of the School District for the year ended June 30, 2022. TPAF Social Security Contributions represents the amount reimbursed by the state for the employers share of social security contributions for TPAF members for the year ended June 30, 2022. The basic financial statements present the general fund and special revenue fund on a GAAP basis. Budgetary comparison statements or 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 audit 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 with the exception of the revenue recognition of the one or more deferred June state aid payments in the current budget year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes payments are not recognized until the subsequent budget year due to the state deferral and recording of the one or more June 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 one or more state aid June payments in the current budget year, consistent with N.J.S.A. 18A:22-4.2.
Title: Note 4: Relationship to Federal and State Financial Reports Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance present the activity of all federal awards and state financial assistance programs of the Borough of Stratford School District. The School District is defined in Note 1 of the basic financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMBs Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies is included on the schedule of expenditures of federal awards and state financial assistance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Revenues and expenditures reported under the Food Distribution Program represent current year value received and current year distributions respectively. The amount reported as TPAF Pension Contributions represents the amount paid by the state on behalf of the School District for the year ended June 30, 2022. TPAF Social Security Contributions represents the amount reimbursed by the state for the employers share of social security contributions for TPAF members for the year ended June 30, 2022. Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.
Title: Note 5: Federal and State Loans Outstanding Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance present the activity of all federal awards and state financial assistance programs of the Borough of Stratford School District. The School District is defined in Note 1 of the basic financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMBs Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies is included on the schedule of expenditures of federal awards and state financial assistance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Revenues and expenditures reported under the Food Distribution Program represent current year value received and current year distributions respectively. The amount reported as TPAF Pension Contributions represents the amount paid by the state on behalf of the School District for the year ended June 30, 2022. TPAF Social Security Contributions represents the amount reimbursed by the state for the employers share of social security contributions for TPAF members for the year ended June 30, 2022. The Borough of Stratford School District had no loan balances outstanding at June 30, 2022.

Finding Details

Finding 2022-001
Finding 2022-001: Criteria or specific requirement: The New Jersey Department of Agriculture requires a School Food Authority to maintain a nonprofit School Food Service. The nonprofit status of the School Food Service is determined by evaluating net cash resources, which may not exceed three months average expenditures. Condition: Net cash resources in the Food Service Fund exceeded three months average expenditures. Questioned Costs: None. Context: Utilizing the USA net cash resource calculation form, it was determined that the District?s net cash resources exceeded the three months average expenditure by $153,083, as of June 30, 2022. Effect: The New Jersey Department of Agriculture requirement regarding Net Cash Resources was note met. Cause: The School District received free meal reimbursement rates for all meals served during the school year. This caused a larger than normal cash influx while operating expenditures remained consistent. Recommendation: The District should reduce net cash resources on hand in the Food Service Fund through capital expenditure or other improvements to the Food Service Program. Views of responsible officials and planned corrective actions: Management agrees with above finding and will take necessary corrective action.
Finding 2022-001
Finding 2022-001: Criteria or specific requirement: The New Jersey Department of Agriculture requires a School Food Authority to maintain a nonprofit School Food Service. The nonprofit status of the School Food Service is determined by evaluating net cash resources, which may not exceed three months average expenditures. Condition: Net cash resources in the Food Service Fund exceeded three months average expenditures. Questioned Costs: None. Context: Utilizing the USA net cash resource calculation form, it was determined that the District?s net cash resources exceeded the three months average expenditure by $153,083, as of June 30, 2022. Effect: The New Jersey Department of Agriculture requirement regarding Net Cash Resources was note met. Cause: The School District received free meal reimbursement rates for all meals served during the school year. This caused a larger than normal cash influx while operating expenditures remained consistent. Recommendation: The District should reduce net cash resources on hand in the Food Service Fund through capital expenditure or other improvements to the Food Service Program. Views of responsible officials and planned corrective actions: Management agrees with above finding and will take necessary corrective action.