Finding Text
2022-001 Condition and Criteria: The U.S. Department of Agriculture regulation located at 7 CFR Part 210, Subpart C, Section 210.14(b) states that the food service fund is to limit its net cash resources to an amount that does not exceed 3 months average expenditures. The fund balance in the District's food service fund exceeded the allowable amount at June 30, 2022. Cause: While the appropriate District employees were aware of the applicable compliance requirements, the District did not spend the necessary amount to reduce fund balance to the allowable limit. Effect: Noncompliance with the requirements of the Code of Federal Regulations. Recommendation: The District should develop and implement a plan to reduce its net cash resources to the allowable limit. Management Response: The District has developed a corrective action plan that addresses this finding.