Finding Text
Criteria or Specific Requirement: United States Department of Agriculture (USDA) requires that net cash resources for the Child Nutrition Program not exceed three months average expenditures in the food service fund.
Condition:
Net cash resourses exceeded three months average expenditures.
Questioned Costs:
N/A
Context:
Net cash resources of $113,506 exceeded three months average expenditures of $36,122 by $77,384.
Effect:
Excess profits retained in the food service fund.
Cause:
Low levels of capital investment over the past four years, increased subsidy rates at the "free" rate of reimbursement for all meals for all children under the age of 18 during COVID-19, additional COVID-19 assistance funds, and supply chain restraints for capital investment.
Recommendation:
The District should reduce net cash resources by purchasing needed equipment, improve food quality, or take other actions to eliminate the excess cash resources in the food service fund.
Views of management and planned corrective actions:
The District plans to reduce net cash resources by investing in capital equiment where necessary and allocating direct cost overhead expenditures.