Finding Text
Excess Cash in the Food Service Fund. Condition: Our legal compliance testing for limited net cash resources in the Food Service fund identified that net cash resources within the fund exceeds the allowable amount. Criteria: U.S. Department of Agriculture has established requirement for non-profit Food Service accounts that puts a "limitation" on Net Cash Resources, which is three months average food service expenditures during the year. Cause: The Food Service fund has a net cash resource balance of $802,530 which exceeds the allowable three months average expenditures of $319,414. Effect: The District's Food Service fund is not in compliance with the requirements for non-profit net cash resources required by the U.S. Department of Agriculture. Recommendation: We recommend that the District reviews the U.S. Department of Agriculture's list of allowable expenses to help reduce the excess funds, as well as notify the Department of Education with their plan to reduce these excess funds as required by the Department. Going forward, all activity within the fund and fees charged relating to the funds services should be regularly reviewed to ensure the District's Food Service fund meets the requirements set the U.S. Department of Agriculture.