Finding 1166723 (2025-001)

Child Nutrition Cluster - CFDA No. 10.553, 10.555 Grant No. 042-124 Condition: Clinton School District must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $1,161,702 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: $1,134,671 based on the amounts in the fund balance of $1,441,024 above the three months operating costs of $306,353. Cause: Anticipated expenditures for food service were not made. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Views of Responsible Officials & Planned Corrective Action: