Finding No. 2023-002
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
CFR Section 210.14 Resource Management (b) Net cash resources. 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 or such other amount may be approved by the State agency in accordance with CFR Section 210.19(a).
Condition
The School District’s Food Service Fund Net Cash Resources exceeded its three months average expenditures by $696,886.34.
Questioned Costs
None.
Context
While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $1,095,097.70 at June 30, 2023 which exceeded the three months average expenditures of $398,211.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A.
Effect or Potential Effect
The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program.
Cause
The School District did not monitor the finances of its Food Service Fund to ensure its Net Cash Resources at the end of the fiscal year did not exceed the Fund’s three months average expenditures.
Identification as a Repeat Finding
The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001.
Recommendation
The School District monitor the finances of its Food Service Fund and create a plan to reduce the net cash resources below its three month average expenditures.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-002
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
CFR Section 210.14 Resource Management (b) Net cash resources. 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 or such other amount may be approved by the State agency in accordance with CFR Section 210.19(a).
Condition
The School District’s Food Service Fund Net Cash Resources exceeded its three months average expenditures by $696,886.34.
Questioned Costs
None.
Context
While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $1,095,097.70 at June 30, 2023 which exceeded the three months average expenditures of $398,211.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A.
Effect or Potential Effect
The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program.
Cause
The School District did not monitor the finances of its Food Service Fund to ensure its Net Cash Resources at the end of the fiscal year did not exceed the Fund’s three months average expenditures.
Identification as a Repeat Finding
The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001.
Recommendation
The School District monitor the finances of its Food Service Fund and create a plan to reduce the net cash resources below its three month average expenditures.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-002
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
CFR Section 210.14 Resource Management (b) Net cash resources. 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 or such other amount may be approved by the State agency in accordance with CFR Section 210.19(a).
Condition
The School District’s Food Service Fund Net Cash Resources exceeded its three months average expenditures by $696,886.34.
Questioned Costs
None.
Context
While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $1,095,097.70 at June 30, 2023 which exceeded the three months average expenditures of $398,211.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A.
Effect or Potential Effect
The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program.
Cause
The School District did not monitor the finances of its Food Service Fund to ensure its Net Cash Resources at the end of the fiscal year did not exceed the Fund’s three months average expenditures.
Identification as a Repeat Finding
The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001.
Recommendation
The School District monitor the finances of its Food Service Fund and create a plan to reduce the net cash resources below its three month average expenditures.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-002
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
CFR Section 210.14 Resource Management (b) Net cash resources. 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 or such other amount may be approved by the State agency in accordance with CFR Section 210.19(a).
Condition
The School District’s Food Service Fund Net Cash Resources exceeded its three months average expenditures by $696,886.34.
Questioned Costs
None.
Context
While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $1,095,097.70 at June 30, 2023 which exceeded the three months average expenditures of $398,211.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A.
Effect or Potential Effect
The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program.
Cause
The School District did not monitor the finances of its Food Service Fund to ensure its Net Cash Resources at the end of the fiscal year did not exceed the Fund’s three months average expenditures.
Identification as a Repeat Finding
The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001.
Recommendation
The School District monitor the finances of its Food Service Fund and create a plan to reduce the net cash resources below its three month average expenditures.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-003
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
To obtain cash assistance, the School District must submit monthly claims for reimbursement to the New Jersey Department of Agriculture. Daily meal count records must be maintained by all schools where food is served. Edit Check Worksheets must be completed for every breakfast and lunch reimbursement claim submitted and the required comparisons made before completing the reimbursement claims. Meal count records on a location by location basis should be reviewed to verify the accuracy of meals claimed on reimbursement claims.
Condition
The School District’s reported meal counts of free, reduced, and paid lunches and breakfasts served could not be verified to the School District’s meal count records for 3 out of the 10 months tested.
Questioned Costs
None.
Context
The number of meals claimed for reimbursement was compared to sales and meal count records.
Effect or Potential Effect
The School District is not in compliance requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program, causing over claim of reimbursable meals.
Cause
Prior to submitting reimbursements claims to the New Jersey Department of Agriculture, the meals claimed were not verified to the meal count activity records.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement internal control procedures to ensure meal counts reported agree to meal count records maintained by the District.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-003
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
To obtain cash assistance, the School District must submit monthly claims for reimbursement to the New Jersey Department of Agriculture. Daily meal count records must be maintained by all schools where food is served. Edit Check Worksheets must be completed for every breakfast and lunch reimbursement claim submitted and the required comparisons made before completing the reimbursement claims. Meal count records on a location by location basis should be reviewed to verify the accuracy of meals claimed on reimbursement claims.
Condition
The School District’s reported meal counts of free, reduced, and paid lunches and breakfasts served could not be verified to the School District’s meal count records for 3 out of the 10 months tested.
Questioned Costs
None.
Context
The number of meals claimed for reimbursement was compared to sales and meal count records.
Effect or Potential Effect
The School District is not in compliance requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program, causing over claim of reimbursable meals.
Cause
Prior to submitting reimbursements claims to the New Jersey Department of Agriculture, the meals claimed were not verified to the meal count activity records.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement internal control procedures to ensure meal counts reported agree to meal count records maintained by the District.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-003
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
To obtain cash assistance, the School District must submit monthly claims for reimbursement to the New Jersey Department of Agriculture. Daily meal count records must be maintained by all schools where food is served. Edit Check Worksheets must be completed for every breakfast and lunch reimbursement claim submitted and the required comparisons made before completing the reimbursement claims. Meal count records on a location by location basis should be reviewed to verify the accuracy of meals claimed on reimbursement claims.
Condition
The School District’s reported meal counts of free, reduced, and paid lunches and breakfasts served could not be verified to the School District’s meal count records for 3 out of the 10 months tested.
Questioned Costs
None.
Context
The number of meals claimed for reimbursement was compared to sales and meal count records.
Effect or Potential Effect
The School District is not in compliance requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program, causing over claim of reimbursable meals.
Cause
Prior to submitting reimbursements claims to the New Jersey Department of Agriculture, the meals claimed were not verified to the meal count activity records.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement internal control procedures to ensure meal counts reported agree to meal count records maintained by the District.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-003
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
To obtain cash assistance, the School District must submit monthly claims for reimbursement to the New Jersey Department of Agriculture. Daily meal count records must be maintained by all schools where food is served. Edit Check Worksheets must be completed for every breakfast and lunch reimbursement claim submitted and the required comparisons made before completing the reimbursement claims. Meal count records on a location by location basis should be reviewed to verify the accuracy of meals claimed on reimbursement claims.
Condition
The School District’s reported meal counts of free, reduced, and paid lunches and breakfasts served could not be verified to the School District’s meal count records for 3 out of the 10 months tested.
Questioned Costs
None.
Context
The number of meals claimed for reimbursement was compared to sales and meal count records.
Effect or Potential Effect
The School District is not in compliance requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program, causing over claim of reimbursable meals.
Cause
Prior to submitting reimbursements claims to the New Jersey Department of Agriculture, the meals claimed were not verified to the meal count activity records.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement internal control procedures to ensure meal counts reported agree to meal count records maintained by the District.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-004
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
For School Breakfast Program and National School Lunch Program, children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price for their meals. A child’s eligibility for free or reduced price meals may be established by the submission of an annual application or statement which furnishes such information as family income and family size. Annual eligibility determinations may also be based on the child’s household receiving benefits under other federal assistance programs, this process is referred to as Direct Certification.
Condition
Several students reported as “low income” and receiving free or reduced price meals lacked appropriate qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
Questioned Costs
None.
Context
The procedures over Child Nutrition Cluster Eligibility were performed in conjunction with the Application for State School Aid.
The population of resident low income students includes 600 free students and 127 reduced students; our sample for the low income test included 189 free students and 46 reduced students. During the test of low income, we noted the following: (a) 16 free students did not have valid lunch applications or direct certification to support their eligibility determination; (b) Based on income reported on the lunch applications, 4 free students should have been categorized as reduced; and 2 free students and 2 reduced students should have been categorized as paid.
The sample was not statistically valid.
Effect or Potential Effect
The School District receives cash assistance by claiming meals served to eligible children for reimbursement. The School District may have received reimbursement for meals served to ineligible children.
Cause
The School District did not have procedures in place to ensure eligibility determination is always supported by qualifying documentation.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement procedures to ensure all eligibility determinations are supported by qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-004
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
For School Breakfast Program and National School Lunch Program, children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price for their meals. A child’s eligibility for free or reduced price meals may be established by the submission of an annual application or statement which furnishes such information as family income and family size. Annual eligibility determinations may also be based on the child’s household receiving benefits under other federal assistance programs, this process is referred to as Direct Certification.
Condition
Several students reported as “low income” and receiving free or reduced price meals lacked appropriate qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
Questioned Costs
None.
Context
The procedures over Child Nutrition Cluster Eligibility were performed in conjunction with the Application for State School Aid.
The population of resident low income students includes 600 free students and 127 reduced students; our sample for the low income test included 189 free students and 46 reduced students. During the test of low income, we noted the following: (a) 16 free students did not have valid lunch applications or direct certification to support their eligibility determination; (b) Based on income reported on the lunch applications, 4 free students should have been categorized as reduced; and 2 free students and 2 reduced students should have been categorized as paid.
The sample was not statistically valid.
Effect or Potential Effect
The School District receives cash assistance by claiming meals served to eligible children for reimbursement. The School District may have received reimbursement for meals served to ineligible children.
Cause
The School District did not have procedures in place to ensure eligibility determination is always supported by qualifying documentation.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement procedures to ensure all eligibility determinations are supported by qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-004
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
For School Breakfast Program and National School Lunch Program, children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price for their meals. A child’s eligibility for free or reduced price meals may be established by the submission of an annual application or statement which furnishes such information as family income and family size. Annual eligibility determinations may also be based on the child’s household receiving benefits under other federal assistance programs, this process is referred to as Direct Certification.
Condition
Several students reported as “low income” and receiving free or reduced price meals lacked appropriate qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
Questioned Costs
None.
Context
The procedures over Child Nutrition Cluster Eligibility were performed in conjunction with the Application for State School Aid.
The population of resident low income students includes 600 free students and 127 reduced students; our sample for the low income test included 189 free students and 46 reduced students. During the test of low income, we noted the following: (a) 16 free students did not have valid lunch applications or direct certification to support their eligibility determination; (b) Based on income reported on the lunch applications, 4 free students should have been categorized as reduced; and 2 free students and 2 reduced students should have been categorized as paid.
The sample was not statistically valid.
Effect or Potential Effect
The School District receives cash assistance by claiming meals served to eligible children for reimbursement. The School District may have received reimbursement for meals served to ineligible children.
Cause
The School District did not have procedures in place to ensure eligibility determination is always supported by qualifying documentation.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement procedures to ensure all eligibility determinations are supported by qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-004
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
For School Breakfast Program and National School Lunch Program, children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price for their meals. A child’s eligibility for free or reduced price meals may be established by the submission of an annual application or statement which furnishes such information as family income and family size. Annual eligibility determinations may also be based on the child’s household receiving benefits under other federal assistance programs, this process is referred to as Direct Certification.
Condition
Several students reported as “low income” and receiving free or reduced price meals lacked appropriate qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
Questioned Costs
None.
Context
The procedures over Child Nutrition Cluster Eligibility were performed in conjunction with the Application for State School Aid.
The population of resident low income students includes 600 free students and 127 reduced students; our sample for the low income test included 189 free students and 46 reduced students. During the test of low income, we noted the following: (a) 16 free students did not have valid lunch applications or direct certification to support their eligibility determination; (b) Based on income reported on the lunch applications, 4 free students should have been categorized as reduced; and 2 free students and 2 reduced students should have been categorized as paid.
The sample was not statistically valid.
Effect or Potential Effect
The School District receives cash assistance by claiming meals served to eligible children for reimbursement. The School District may have received reimbursement for meals served to ineligible children.
Cause
The School District did not have procedures in place to ensure eligibility determination is always supported by qualifying documentation.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement procedures to ensure all eligibility determinations are supported by qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-002
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
CFR Section 210.14 Resource Management (b) Net cash resources. 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 or such other amount may be approved by the State agency in accordance with CFR Section 210.19(a).
Condition
The School District’s Food Service Fund Net Cash Resources exceeded its three months average expenditures by $696,886.34.
Questioned Costs
None.
Context
While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $1,095,097.70 at June 30, 2023 which exceeded the three months average expenditures of $398,211.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A.
Effect or Potential Effect
The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program.
Cause
The School District did not monitor the finances of its Food Service Fund to ensure its Net Cash Resources at the end of the fiscal year did not exceed the Fund’s three months average expenditures.
Identification as a Repeat Finding
The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001.
Recommendation
The School District monitor the finances of its Food Service Fund and create a plan to reduce the net cash resources below its three month average expenditures.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-002
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
CFR Section 210.14 Resource Management (b) Net cash resources. 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 or such other amount may be approved by the State agency in accordance with CFR Section 210.19(a).
Condition
The School District’s Food Service Fund Net Cash Resources exceeded its three months average expenditures by $696,886.34.
Questioned Costs
None.
Context
While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $1,095,097.70 at June 30, 2023 which exceeded the three months average expenditures of $398,211.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A.
Effect or Potential Effect
The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program.
Cause
The School District did not monitor the finances of its Food Service Fund to ensure its Net Cash Resources at the end of the fiscal year did not exceed the Fund’s three months average expenditures.
Identification as a Repeat Finding
The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001.
Recommendation
The School District monitor the finances of its Food Service Fund and create a plan to reduce the net cash resources below its three month average expenditures.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-002
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
CFR Section 210.14 Resource Management (b) Net cash resources. 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 or such other amount may be approved by the State agency in accordance with CFR Section 210.19(a).
Condition
The School District’s Food Service Fund Net Cash Resources exceeded its three months average expenditures by $696,886.34.
Questioned Costs
None.
Context
While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $1,095,097.70 at June 30, 2023 which exceeded the three months average expenditures of $398,211.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A.
Effect or Potential Effect
The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program.
Cause
The School District did not monitor the finances of its Food Service Fund to ensure its Net Cash Resources at the end of the fiscal year did not exceed the Fund’s three months average expenditures.
Identification as a Repeat Finding
The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001.
Recommendation
The School District monitor the finances of its Food Service Fund and create a plan to reduce the net cash resources below its three month average expenditures.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-002
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
CFR Section 210.14 Resource Management (b) Net cash resources. 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 or such other amount may be approved by the State agency in accordance with CFR Section 210.19(a).
Condition
The School District’s Food Service Fund Net Cash Resources exceeded its three months average expenditures by $696,886.34.
Questioned Costs
None.
Context
While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $1,095,097.70 at June 30, 2023 which exceeded the three months average expenditures of $398,211.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A.
Effect or Potential Effect
The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program.
Cause
The School District did not monitor the finances of its Food Service Fund to ensure its Net Cash Resources at the end of the fiscal year did not exceed the Fund’s three months average expenditures.
Identification as a Repeat Finding
The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001.
Recommendation
The School District monitor the finances of its Food Service Fund and create a plan to reduce the net cash resources below its three month average expenditures.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-003
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
To obtain cash assistance, the School District must submit monthly claims for reimbursement to the New Jersey Department of Agriculture. Daily meal count records must be maintained by all schools where food is served. Edit Check Worksheets must be completed for every breakfast and lunch reimbursement claim submitted and the required comparisons made before completing the reimbursement claims. Meal count records on a location by location basis should be reviewed to verify the accuracy of meals claimed on reimbursement claims.
Condition
The School District’s reported meal counts of free, reduced, and paid lunches and breakfasts served could not be verified to the School District’s meal count records for 3 out of the 10 months tested.
Questioned Costs
None.
Context
The number of meals claimed for reimbursement was compared to sales and meal count records.
Effect or Potential Effect
The School District is not in compliance requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program, causing over claim of reimbursable meals.
Cause
Prior to submitting reimbursements claims to the New Jersey Department of Agriculture, the meals claimed were not verified to the meal count activity records.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement internal control procedures to ensure meal counts reported agree to meal count records maintained by the District.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-003
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
To obtain cash assistance, the School District must submit monthly claims for reimbursement to the New Jersey Department of Agriculture. Daily meal count records must be maintained by all schools where food is served. Edit Check Worksheets must be completed for every breakfast and lunch reimbursement claim submitted and the required comparisons made before completing the reimbursement claims. Meal count records on a location by location basis should be reviewed to verify the accuracy of meals claimed on reimbursement claims.
Condition
The School District’s reported meal counts of free, reduced, and paid lunches and breakfasts served could not be verified to the School District’s meal count records for 3 out of the 10 months tested.
Questioned Costs
None.
Context
The number of meals claimed for reimbursement was compared to sales and meal count records.
Effect or Potential Effect
The School District is not in compliance requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program, causing over claim of reimbursable meals.
Cause
Prior to submitting reimbursements claims to the New Jersey Department of Agriculture, the meals claimed were not verified to the meal count activity records.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement internal control procedures to ensure meal counts reported agree to meal count records maintained by the District.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-003
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
To obtain cash assistance, the School District must submit monthly claims for reimbursement to the New Jersey Department of Agriculture. Daily meal count records must be maintained by all schools where food is served. Edit Check Worksheets must be completed for every breakfast and lunch reimbursement claim submitted and the required comparisons made before completing the reimbursement claims. Meal count records on a location by location basis should be reviewed to verify the accuracy of meals claimed on reimbursement claims.
Condition
The School District’s reported meal counts of free, reduced, and paid lunches and breakfasts served could not be verified to the School District’s meal count records for 3 out of the 10 months tested.
Questioned Costs
None.
Context
The number of meals claimed for reimbursement was compared to sales and meal count records.
Effect or Potential Effect
The School District is not in compliance requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program, causing over claim of reimbursable meals.
Cause
Prior to submitting reimbursements claims to the New Jersey Department of Agriculture, the meals claimed were not verified to the meal count activity records.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement internal control procedures to ensure meal counts reported agree to meal count records maintained by the District.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-003
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
To obtain cash assistance, the School District must submit monthly claims for reimbursement to the New Jersey Department of Agriculture. Daily meal count records must be maintained by all schools where food is served. Edit Check Worksheets must be completed for every breakfast and lunch reimbursement claim submitted and the required comparisons made before completing the reimbursement claims. Meal count records on a location by location basis should be reviewed to verify the accuracy of meals claimed on reimbursement claims.
Condition
The School District’s reported meal counts of free, reduced, and paid lunches and breakfasts served could not be verified to the School District’s meal count records for 3 out of the 10 months tested.
Questioned Costs
None.
Context
The number of meals claimed for reimbursement was compared to sales and meal count records.
Effect or Potential Effect
The School District is not in compliance requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program, causing over claim of reimbursable meals.
Cause
Prior to submitting reimbursements claims to the New Jersey Department of Agriculture, the meals claimed were not verified to the meal count activity records.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement internal control procedures to ensure meal counts reported agree to meal count records maintained by the District.
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-004
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
For School Breakfast Program and National School Lunch Program, children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price for their meals. A child’s eligibility for free or reduced price meals may be established by the submission of an annual application or statement which furnishes such information as family income and family size. Annual eligibility determinations may also be based on the child’s household receiving benefits under other federal assistance programs, this process is referred to as Direct Certification.
Condition
Several students reported as “low income” and receiving free or reduced price meals lacked appropriate qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
Questioned Costs
None.
Context
The procedures over Child Nutrition Cluster Eligibility were performed in conjunction with the Application for State School Aid.
The population of resident low income students includes 600 free students and 127 reduced students; our sample for the low income test included 189 free students and 46 reduced students. During the test of low income, we noted the following: (a) 16 free students did not have valid lunch applications or direct certification to support their eligibility determination; (b) Based on income reported on the lunch applications, 4 free students should have been categorized as reduced; and 2 free students and 2 reduced students should have been categorized as paid.
The sample was not statistically valid.
Effect or Potential Effect
The School District receives cash assistance by claiming meals served to eligible children for reimbursement. The School District may have received reimbursement for meals served to ineligible children.
Cause
The School District did not have procedures in place to ensure eligibility determination is always supported by qualifying documentation.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement procedures to ensure all eligibility determinations are supported by qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-004
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
For School Breakfast Program and National School Lunch Program, children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price for their meals. A child’s eligibility for free or reduced price meals may be established by the submission of an annual application or statement which furnishes such information as family income and family size. Annual eligibility determinations may also be based on the child’s household receiving benefits under other federal assistance programs, this process is referred to as Direct Certification.
Condition
Several students reported as “low income” and receiving free or reduced price meals lacked appropriate qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
Questioned Costs
None.
Context
The procedures over Child Nutrition Cluster Eligibility were performed in conjunction with the Application for State School Aid.
The population of resident low income students includes 600 free students and 127 reduced students; our sample for the low income test included 189 free students and 46 reduced students. During the test of low income, we noted the following: (a) 16 free students did not have valid lunch applications or direct certification to support their eligibility determination; (b) Based on income reported on the lunch applications, 4 free students should have been categorized as reduced; and 2 free students and 2 reduced students should have been categorized as paid.
The sample was not statistically valid.
Effect or Potential Effect
The School District receives cash assistance by claiming meals served to eligible children for reimbursement. The School District may have received reimbursement for meals served to ineligible children.
Cause
The School District did not have procedures in place to ensure eligibility determination is always supported by qualifying documentation.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement procedures to ensure all eligibility determinations are supported by qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-004
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
For School Breakfast Program and National School Lunch Program, children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price for their meals. A child’s eligibility for free or reduced price meals may be established by the submission of an annual application or statement which furnishes such information as family income and family size. Annual eligibility determinations may also be based on the child’s household receiving benefits under other federal assistance programs, this process is referred to as Direct Certification.
Condition
Several students reported as “low income” and receiving free or reduced price meals lacked appropriate qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
Questioned Costs
None.
Context
The procedures over Child Nutrition Cluster Eligibility were performed in conjunction with the Application for State School Aid.
The population of resident low income students includes 600 free students and 127 reduced students; our sample for the low income test included 189 free students and 46 reduced students. During the test of low income, we noted the following: (a) 16 free students did not have valid lunch applications or direct certification to support their eligibility determination; (b) Based on income reported on the lunch applications, 4 free students should have been categorized as reduced; and 2 free students and 2 reduced students should have been categorized as paid.
The sample was not statistically valid.
Effect or Potential Effect
The School District receives cash assistance by claiming meals served to eligible children for reimbursement. The School District may have received reimbursement for meals served to ineligible children.
Cause
The School District did not have procedures in place to ensure eligibility determination is always supported by qualifying documentation.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement procedures to ensure all eligibility determinations are supported by qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.
Finding No. 2023-004
Information on the Federal Program
U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23):
School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199)
National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199)
National School Lunch Program - Supply Chain Assistance Funding
(Assistance Listing Number 10.555) (FAIN – 221NJ344N8903)
Criteria or Specific Requirement
For School Breakfast Program and National School Lunch Program, children belonging to households meeting nationwide income eligibility requirements may receive meals at no charge or at reduced price. Children who have been determined ineligible for free or reduced price school meals pay the full price for their meals. A child’s eligibility for free or reduced price meals may be established by the submission of an annual application or statement which furnishes such information as family income and family size. Annual eligibility determinations may also be based on the child’s household receiving benefits under other federal assistance programs, this process is referred to as Direct Certification.
Condition
Several students reported as “low income” and receiving free or reduced price meals lacked appropriate qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
Questioned Costs
None.
Context
The procedures over Child Nutrition Cluster Eligibility were performed in conjunction with the Application for State School Aid.
The population of resident low income students includes 600 free students and 127 reduced students; our sample for the low income test included 189 free students and 46 reduced students. During the test of low income, we noted the following: (a) 16 free students did not have valid lunch applications or direct certification to support their eligibility determination; (b) Based on income reported on the lunch applications, 4 free students should have been categorized as reduced; and 2 free students and 2 reduced students should have been categorized as paid.
The sample was not statistically valid.
Effect or Potential Effect
The School District receives cash assistance by claiming meals served to eligible children for reimbursement. The School District may have received reimbursement for meals served to ineligible children.
Cause
The School District did not have procedures in place to ensure eligibility determination is always supported by qualifying documentation.
Identification as a Repeat Finding
Not applicable.
Recommendation
The School District develop and implement procedures to ensure all eligibility determinations are supported by qualifying documentation (Free and Reduced Lunch Application or Direct Certification).
View of Responsible Officials and Planned Corrective Action
The responsible officials agree with the finding and will address the matter as part of their corrective action plan.