Finding 1165672 (2025-001)

2025-001 Child Nutrition Cluster - CFDA No. 10.553, 10.555 Grant No. 097-129 Condition: Marshall Public Schools must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $256,202. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit. Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $256,202 based on the amounts in the fund balance of $735,015 above the three months operating costs of $478,813. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation:We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements.