HADDON HEIGHTS SCHOOL DISTRICT

Information on the Federal Program U.S. Department of Agriculture, passed-through New Jersey State Department of Agriculture; Child Nutrition Cluster: School Breakfast Program (Assistance Listing Number 10.553, FAIN Number 221NJ304N1099), National School Lunch Program (Assistance Listing Number 10.555, FAIN Number 221NJ304N1099) Criteria or Specific Requirement A School District is required to maintain a nonprofit school food service. The nonprofit status is determined by evaluating net cash resources which is all monies that are available to, or have accrued to, the fund at any given time, less cash payable. Net cash resources may not exceed three months average expenditures. Condition As of June 30, 2022, net cash resources in the School District?s Food Service Enterprise Fund exceeded three months average expenditures. Questioned Costs None. Context The net cash resources as of June 30, 2022, of $423,810.56 exceeded three months average expenditures of $171,755.88 by $252,054.68. Effect or Potential Effect The School District has not complied with the requirement to maintain a nonprofit school food service. Cause The operations of the school food service program resulted in an increase in net position for the fiscal year ended June 30, 2022. Identification as a Repeat Finding Financial Statement Finding No. 2021-001 in prior year audit. Recommendation The School District maintain a nonprofit school food service by ensuring that net cash resources do not exceed three months 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.

The Haddon Heights School District will monitor the fiscal condition of the Food Service Enterprise Fund in the 2022-2023 school year to ensure that the net cash resources do not exceed three months average expenditures.