Finding Text
Finding 2023-001
Criteria or Specific Requirement:
United States Department of Agriculture (USDA) requires that net cash resources for the Child Nutrition Program not exceed three months average expenditures in the food service fund.
Condition:
Net cash resourses exceeded three months average expenditures.
Questioned Costs:
N/A
Context:
Net cash resources of $1,582,243 exceeded three months average expenditures of $707,262 by
$874,981.
Effect:
Excess profits retained in the food service fund.
Cause:
Low levels of capital investment over the past four years and increased subsidy rates at the
"free" rate of reimbursement for all meals for all children under the age of 18 due to COVID-
19; Additional Supply Chain Assistance funds and supply chain restraints for capital
investment.
Recommendation:
The board should reduce net cash resources by purchasing needed equipment, improve food
quality, or take other actions to eliminate the excess cash resources in the food service fund.