Finding Text
Federal Program: Child Nutrition Cluster (Federal Assistance Listing Nos. 10.555,
10.553, 10.559 and 10.582)
Criteria: CFR Section 210.14 Resource Management (b) Net cash resources requires a
school food authority to limit its net cash resources to an amount that does not exceed 3
months average expenditures for its’ nonprofit school food service or an amount
approved by the State agency in accordance with CFR Section 210.019(a).
Condition: The School District did not limit it’s net cash resources to three months
average expenditures for it’s school food service fund as required by CFR Section
210.14 Resource Management (b) Net Cash Resources.
Questioned Costs: None
Context: The School District’s food service fund net cash resources at June 30, 2023
was $2,842,133 and it’s three month average expenditures was $2,041,664, resulting in
an excess amount totaling $800,470.
Effect: The School District is not in compliance with CFR section 210.14 and
requirements as prescribed by the Office of School Finance, Department of Education,
State of New Jersey Audit Program.
Cause: The School District’s food service revenues increased more than anticipated.
Recommendation: The School District should develop a plan to reduce the food service
fund’s net cash resources below its three month average expenditures as required by
CFR Section 210.14 Resource Management (b) Net Cash Resources. 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.