Finding Text
Federal Program: U.S. Department of Agriculture: Child Nutrition Cluster - School Breakfast Program (10.553) and National School Lunch Program (10.555). Criteria: According to the School Nutrition Programs Administrative Handbook for school year 2023-2024, the food service program must limit its cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service program. Condition: The District had a three-month average operating cost of $112,698 resulting in an excess balance of $64,140. Cause: The District's food service program has been operating at a profit in recent years and has accumulated the excess carryover. The District is aware of the excess carryover and did operate at a loss for the year. However it was not enough to lower the carryover below the three-month average. Effect: The District has accumulated surpluses in the food service program which is intended to be a non-profit program. The District runs the risk of either not providing services that have been paid for, or overcharging for services actually provided. Questioned Costs: None. Context: Actual Child Nutrition expenditures were $375,660. Repeat Finding: No. Recommendation: We recommend the District monitor the profit made and ensure all expenditures used to operate the program are properly charged to the program. Views of Responsible Officials: The District will ensure that all eligible costs are charged to the program and modernize the equipment to reduce the accumulated carry-over.