Finding 585975 (2023-001)

Finding No. 2023-001 Information on the Federal Program U.S. Department of Agriculture - Passed-through State Department of Agriculture - Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23): School Breakfast Program (Assistance Listing No. 10.553) (FAIN - 231NJ304N1199) National School Lunch Program - Commodities (Assistance Listing No. 10.555) (FAIN - 231NJ304N1199) National School Lunch Program (Assistance Listing No. 10.555) (FAIN - 231NJ304N1199) HHFKA-Performance Based (Assistance Listing No. 10.555) (FAIN - 231NJ304N1199) Supply Chain Assistance (Assistance Listing No. 10.555) (FAIN - 221NJ344N8903 & 231NJ344N8903) 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 210.019(a). Condition The School District’s food service fund net cash resources exceeded its three months average expenditures by $127,709.09. Questioned Costs Not applicable. Context Per the calculation of the food service fund’s net cash resources, net cash resources at June 30, 2023 was $283,625.30 and its three month average expenditures was $155,916.21, resulting in an overage of $127,709.09. 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 The School District’s food service fund revenues increased during the prior two years due to additional COVID-19 funding. Identification as a Repeat Finding The condition existed in the immediately preceding fiscal year - See Finding No. 2022-001. 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.