Borough of Lindenwold School DistrictLocal Government

Finding No. 2023-001 Information on the Federal Program U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23): School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199) National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199) National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199) National School Lunch Program - Supply Chain Assistance Funding (Assistance Listing Number 10.555) (FAIN – 221NJ344N8903) 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 $49,175.75. Questioned Costs None. Context While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $885,506.11 at June 30, 2023 which exceeded the three months average expenditures of $836,330.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A. Effect or Potential Effect The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program. Cause Additional Federal cost reimbursements received during the fiscal year caused the net cash resources to be exceed three months’ average expenditures, despite monitoring by the School District of its Food Service Fund. Identification as a Repeat Finding The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001. Recommendation The School District should continue to monitor the finances of its Food Service Fund and follow up with the plan to reduce the net cash resources below its 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.

Finding No. 2023-001 Information on the Federal Program U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23): School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199) National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199) National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199) National School Lunch Program - Supply Chain Assistance Funding (Assistance Listing Number 10.555) (FAIN – 221NJ344N8903) 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 $49,175.75. Questioned Costs None. Context While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $885,506.11 at June 30, 2023 which exceeded the three months average expenditures of $836,330.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A. Effect or Potential Effect The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program. Cause Additional Federal cost reimbursements received during the fiscal year caused the net cash resources to be exceed three months’ average expenditures, despite monitoring by the School District of its Food Service Fund. Identification as a Repeat Finding The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001. Recommendation The School District should continue to monitor the finances of its Food Service Fund and follow up with the plan to reduce the net cash resources below its 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.

Finding No. 2023-001 Information on the Federal Program U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23): School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199) National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199) National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199) National School Lunch Program - Supply Chain Assistance Funding (Assistance Listing Number 10.555) (FAIN – 221NJ344N8903) 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 $49,175.75. Questioned Costs None. Context While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $885,506.11 at June 30, 2023 which exceeded the three months average expenditures of $836,330.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A. Effect or Potential Effect The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program. Cause Additional Federal cost reimbursements received during the fiscal year caused the net cash resources to be exceed three months’ average expenditures, despite monitoring by the School District of its Food Service Fund. Identification as a Repeat Finding The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001. Recommendation The School District should continue to monitor the finances of its Food Service Fund and follow up with the plan to reduce the net cash resources below its 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.

Finding No. 2023-001 Information on the Federal Program U.S. Department of Agriculture – Child Nutrition Cluster (Federal Award Year 7/1/22 to 6/30/23): School Breakfast Program (Assistance Listing Number 10.553) (FAIN – 231NJ304N1199) National School Lunch Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199) National School Lunch Program - Food Distribution Program (Assistance Listing Number 10.555) (FAIN – 231NJ304N1199) National School Lunch Program - Supply Chain Assistance Funding (Assistance Listing Number 10.555) (FAIN – 221NJ344N8903) 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 $49,175.75. Questioned Costs None. Context While performing the calculation to determine if the Food Service program is running at a nonprofit status, it was determined that the net cash resources totaled $885,506.11 at June 30, 2023 which exceeded the three months average expenditures of $836,330.36 calculated using the sample Net Cash Resources Schedule in the format provided by the U.S.D.A. Effect or Potential Effect The School District is not in compliance with CFR section 210.14 and requirements as prescribed the Office of School Finance, Department of Education, State of New Jersey Audit Program. Cause Additional Federal cost reimbursements received during the fiscal year caused the net cash resources to be exceed three months’ average expenditures, despite monitoring by the School District of its Food Service Fund. Identification as a Repeat Finding The condition existed in the immediately preceding fiscal year – see Finding No. 2022-001. Recommendation The School District should continue to monitor the finances of its Food Service Fund and follow up with the plan to reduce the net cash resources below its 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.

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 three 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 $119,758. Context Per the calculation of the Food Service Funds Net Cash Resources, Net Cash Resources at June 30, 2020 were $584,754 and its three months average expenditures were $464,996, resulting in an overage of $119,758. 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 did not monitor the finances of its Food Service Fund to ensure its Net Cash Resources at the end of the fiscal year did not exceed the Funds three months average expenditures. Recommendation The School District should 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 are in agreement with the calculation and will consider how best to address. The District would like to emphasize that while this USDA regulation is normally a reasonable and sound financial requirement, the USDA should have considered temporarily waiving this requirement due to the impact of COVID-19. Lindenwold Board of Education?s operating expenditures as of June 30, 2020 have been grossly deflated due to the pandemic and the fact that we are not able to feed nearly as many children as when our students are in session. This reduction in expenditures is temporary and to reduce our cash resources based on this temporary situation, is not a sound financial decision.