Finding Text
2025-002 Child Nutrition Cluster 2025 Criteria: Per 7 CFR 210.14, a National School Lunch Program sponsor shall limit its net cash reserves to an amount that does not exceed three months' average expenditures for its nonprofit school food service. Condition: At June 30, 2025, the District maintained fund balance in excess of three months' average expenditures. This is considered an instance of noncompliance. Questioned Costs: None Context: The District has been operating the National School Lunch Program with revenues in excess of expenditures for several years. While the District is working towards spending down the fund balance, at June 30, 2025 the District maintained fund balance in excess of three months' average expenditures. Effect: The District has a fund balance in excess of three months' average expenditures for the Food Service Program. Cause: The District had been operating the food service program with revenues in excess of expenditures for several years. Recommendation: We recommend the District work on decreasing the fund balance to below the three months' average expenditures. Management's Reponse: See corrective action plan