EVESHAM TOWNSHIP SCHOOL DISTRICT

Finding No. 2020-001 Information on the Federal Program U.S. Department of Education ? Child Nutrition Cluster (Federal Award Year 7/1/19 to 6/30/20): School Breakfast Program (CFDA 10.553) (FAIN ? 201NJ304N1099) Seamless Summer Option ? COVID 19 CARES (CFDA 10.553) (FAIN ? 201NJ304N1099) National School Lunch Program (CFDA 10.555) (FAIN ? 201NJ304N1099) Seamless Summer Option ? COVID 19 CARES (CFDA 10.555) (FAIN ? 201NJ304N1099) National School Lunch Program -- Commodities (CFDA 10.555) (FAIN ? 201NJ304N1099) 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 $93,010.94. Questioned Costs None Context Per the calculation of the Food Service Fund?s Net Cash Resources, Net Cash Resources at June 30, 2020 was $365,073.81 and its three months average expenditures was $272,062.88, resulting in an overage of $93,010.94. 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 The School District?s Food Service Fund revenues increased and expenditures decreased more than anticipated. Identification as a Repeat Finding Not applicable. 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.

Due to hybrid student learning schedules for the 2020-2021 school year the food service fund?s cash resource is decreasing on its own. Also additional cafeteria improvements will be made in accordance with any excess funds that may be generated.