STRATFORD BOROUGH SCHOOL DISTRICTState Government

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. Questioned Costs: None. Context: Utilizing the USA net cash resource calculation form, it was determined that the District?s net cash resources exceeded the three months average expenditure by $153,083, as of June 30, 2022. Effect: The New Jersey Department of Agriculture requirement regarding Net Cash Resources was note met. Cause: The School District received free meal reimbursement rates for all meals served during the school year. This caused a larger than normal cash influx while operating expenditures remained consistent. Recommendation: The District should reduce net cash resources on hand in the Food Service Fund through capital expenditure or other improvements to the Food Service Program. Views of responsible officials and planned corrective actions: Management agrees with above finding and will take necessary corrective action.