Finding Text
Finding 2024-001
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 $1,281,078 exceeded three months average expenditures of $872,000 by
$409,079.
Effect:
Excess profits retained in the food service fund.
Cause:
Increased subsidy rates at the "free" rate of reimbursement for all meals for all children under the age of 18 during COVID-19; Additional Supply Chain Assistance COVID funds during COVID up through present, supply chain restraints for capital investment during and after COVID, coupled with low levels of capital investment during COVID. The prior year excess of net cash resources of $874,981 decreased to $409,079 in the current year due to planned investment in capital and food improvements.
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.