Noncompliance Finding 2022-004 (Net Cash Resources) Federal Program: Child Nutrition Cluster ALN: 10.553, 10.555 Condition: The District?s current net cash resources of $566,723 is in excess of its three months average expenditures of $443,634. Recommendation: We have advised management to resolve the current noncompliance finding by any means necessary that is in compliance with federal regulations. Corrective Action: During the 2021-2022 school year, the USDA extended the universal free breakfast and lunch program for K - 12 students. This greatly impacted the number of meals the District served students. In addition to the increased participation, the subsidy reimbursement rate increased and all meals were subsidized by the Federal government. While serving more meals, our Food Service Department struggled to fully staff operations. The department was understaffed by about seven employees and the department operated with roughly 75 percent of its staffing needs. The combination of additional subsidy revenue and understaffing resulted in the department?s profitability. The District will address the excess net cash resources by further investing in the food service program. First, the District will continue its efforts to attract and retain employees to fully staff the unfilled positions. Hourly rates were increased for both new and existing staff in the 2022-2023 fiscal year. As those positions are filled, the Food Service Department?s average expenditures will increase, which also increases the acceptable level of net cash resources permitted. Additionally, the Food Service Department is planning purchases of additional and replacement equipment for the kitchens, resulting in a decrease in the Fund?s net cash resources. These actions will bring the District?s net cash resources within the acceptable range as set forth in 7 CFR ? 210.19. Person Responsible: Daniel Direso, CPA Proposed Completion Date: April 1, 2023