Finding Text
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.