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.