Finding Text
A. Condition: Identified cash balances for the Child Nutrition Program as defined under federal regulations were in excess of the allowed 3 months average expenditures by $439,083. B. Criteria: Federal funding requires that the Child Nutrition cash balances should not exceed the average 3 months operating expenditures. C. Cause: The actual cash balances as of August 31, 2022, exceeded the allowed 3 month average spending amount by $439,083. D. Effect: Cash balances in the food service accounts exceeded allowed amounts per the provisions of the Child Nutrition Program. E. Recommendation: The District should review current needs for equipment, charges for student meals, etc. and develop a plan for the reduction of cash balances in the child nutrition fund. F. Auditee Response: The District will review their current needs for food service equipment and other direct costs for the Child Nutrition Program. A plan will be developed to reduce the cash balances in the lunchroom fund during the fiscal year ended August 31, 2023.