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. Context: Utilizing the U.S.A. net cash resources calculation form, it was determined that the District?s net cash resources exceeded the three months average expenditures by $153,545 as of June 30, 2022. Cause: Due to the Public Health Emergency, all meals provided were eligible for reimbursement, causing a significant increase in revenues for the District. Effect or Potential Effect: The New Jersey Department of Agriculture requirement regarding Net Cash Resources was not met. Recommendation: The District should reduce net cash resources on hand in the Food Service Fund through capital expenditures or other improvements to the Food Service Program. Views of responsible officials and planned corrective action: Management agrees with the above finding and will take necessary corrective action.