Finding Text
Information on the Federal Program
Child Nutrition Cluster: 10.553 - National School Breakfast Program (7/1/2022-6/30/2023), 10.555 - National School Lunch Program (7/1/2022-6/30/2023), 10.555 - National School Snack Program (7/1/2022-6/30/2023), 10.555 - Supply Chain Assistance Award (7/1/2022-6/30/2023), 10.559 - Summer Food Service Program for Children (7/1/2022-6/30/2023), 10.555 – NSLP Food Distribution Program (7/1/2022-6/30/2023).
Criteria or Specific Requirement
A Food Service Fund's Net Cash Resources should not exceed its three-months average expenditures.
Condition
The School District's Food Service Fund Net Cash Resources exceeded its three-months average expenditures.
Questioned Costs
None.
Context
Per the calculation of the Food Service Fund's Net Cash Resources as presented in the Auditor’s Management Report, Net Cash Resources at June 30, 2023 exceeded its three-month average expenditure, resulting in an overage.
Effect or Potential Effect
Noncompliance with the requirements as prescribed by the Office of School Finance, Department of Education, State of New Jersey Audit Program.
Cause
The School District’s revenues generated from food service operations exceeded the expenditures required to operate the food service program.
Identification as a Repeat Finding
This finding is a repeat of finding 2022-001.
Recommendation
That the School District develop a plan to reduce the Food Service Fund's 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.