Finding Text
inding 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. 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 $340,179, as of June 30, 2022. Effect: The New Jersey Department of Agriculture requirement regarding Net Cash Resources was not met. Cause: The School District had remote learning for students in place during the school year due to the COVID-19 pandemic. This caused a sharp drop in operating expenditures and an increase in revenues due to student meals being classified as free meals for federal reimbursement. Recommendation: The District should reduce net cash resources on hand in the Food Service Fund through capital expenditures or other improvements to the Food Service Program. Views of responsible officials and planned corrective actions: Management agrees with the finding and will continue to expend funds as reasonably possible.