Finding Text
Finding Type: Significant deficiency Criteria - Per 7 CFR Subpart C - 210.14(b), the school food authority shall limit its net cash resources to an amount that does not exceed its 3-month average expenditures for its nonprofit school food service or such other amount as may be approved by the State agency in accordance with 7 CFR Subpart D - 210.19(a). (This is a repeat of prior year finding 2023-010). Condition - The cumulative net cash resources as of December 31, 2024 totaled $426,397, which exceeded the net cash resource limit by $248,377. Cause - The School accumulated a large net cash resource balance during the COVID-19 pandemic and the USDA extension of the summer feeding program. Effect - The School is not in compliance with 7 CFR Subpart C - 210.14(b). Noncompliance with this guidance exposes the School to the risk of forfeiture of Child Nutrition Program funds. Recommendation - We recommend that management and the School communicate with ALSDE to establish an appropriate plan to use the net cash resources or return of the funds. Questioned costs - None. Management response - See corrective action plan provided by the Head of School.