Finding 50513 (2022-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-20

AI Summary

  • Core Issue: The School District's Food Service Fund has net cash resources exceeding the allowed limit by $305,150.14.
  • Impacted Requirements: This violates CFR Section 210.14, which mandates limiting net cash resources to three months of average expenditures.
  • Recommended Follow-Up: The School District should create a plan to reduce net cash resources to comply with regulations.

Finding Text

Finding No. 2022-001 Information on the Federal Program Federal Assistance Listing Number ? 10.553 & 10.555 Title ? Child Nutrition Cluster Agency ? U.S. Department of Agriculture Federal FAIN Number ? 221NJ304N0199 Year ? 7/1/2021 to 6/30/2022 Pass Through Entity ? New Jersey Department of Agriculture 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 $305,150.14. Questioned Costs None Context Per the calculation of the Food Service Fund?s Net Cash Resources, Net Cash Resources at June 30, 2022 were $549,652.03 and its three months average expenditures were $244,501.89, resulting in an overage of $305,150.14. Effect or Potential 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 Monitoring of the finances of the Food Service Fund, to ensure its Net Cash Resources at the end of the fiscal year did not exceed the Funds three month average expenditures, was not successful. Identification as a Repeat Finding Prior Year Finding 2021-001 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.

Categories

School Nutrition Programs Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $304,393
21.027 Coronavirus State and Local Fiscal Recovery Funds $246,181
10.553 School Breakfast Program $130,963
84.010 Title I Grants to Local Educational Agencies $98,816
84.027 Special Education_grants to States $96,989
10.555 National School Lunch Program $56,534
84.367 Improving Teacher Quality State Grants $48,100
84.196 Education for Homeless Children and Youth $14,789
84.424 Student Support and Academic Enrichment Program $12,584
93.778 Medical Assistance Program $6,828
10.649 Pandemic Ebt Administrative Costs $1,242