Finding 42028 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-03-15

AI Summary

  • Core Issue: The School Food Authority's net cash resources exceeded the allowed limit by $137,515.
  • Impacted Requirement: New Jersey Department of Agriculture mandates that net cash resources must not exceed three months of average expenditures.
  • Recommended Follow-Up: The District should reduce excess cash through capital expenditures or improvements to the Food Service Program.

Finding Text

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 $137,515, 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.

Corrective Action Plan

Purchase Needed Equipment

Categories

Cash Management School Nutrition Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 Covid-19 National School Lunch Program $549,907
84.425U Education Stabilization Fund $479,682
84.027A Special Education_grants to States $363,872
10.553 Covid-19 School Breakfast Program $254,969
84.010 Title I Grants to Local Educational Agencies $213,855
84.027X Covid-19 Arp Special Education_grants to States $57,327
84.173A Special Education_preschool Grants $39,224
84.425D Education Stabilization Fund $37,171
10.649 Pandemic Ebt Administrative Costs $35,600
84.367 Improving Teacher Quality State Grants $30,094
93.778 Medical Assistance Program $17,907
10.555 Food Distribution Program $15,575
84.323 Special Education - State Personnel Development $15,109
84.424 Student Support and Academic Enrichment Program $7,664
84.365A English Language Acquisition State Grants $5,002
84.173X Covid-19 Arp Special Education_preschool Grants $4,876
10.555 Covid-19 Emergency Operational Cost Reimbursement $1,242
10.556 Special Milk Program for Children $630