Finding Text
2023-003 Child Nutrition Cluster - CFDA No. 10.553, 10.555 Grant No. 054-041 Condition: Odessa R-VII School District must operate the food service program on a non-profit basis. The District’s ending food service balance exceeded three months average expenses by $405,902. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit. Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $405,902 based on the amounts in the fund balance of $721,268 above the three months operating costs of $315,366. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Views of Responsible Officials & Planned Corrective Action: The District will take action to reduce the food service balance in a timely fashion. The completion date for this corrective action is May 31, 2024.2023-002 Child Nutrition Cluster - CFDA No. 10.553, 10.555 Grant No. 042-124 Condition: Odessa R-VII School District must operate the food service program on a non-profit basis. The District's ending food service balance exceeded three months average expenses by $700,602. Criteria: The child nutrition cluster compliance guidelines N.3 states that a school must operate the food service accounts on a non-profit basis. This indicates that no more than three months operating expenses may be maintained by the District to be considered non-profit. Effect: The District maintains funds in its food service accounts that exceed the amounts as allowed in the child nutrition guidelines. Questioned Costs: $700,602 based on the amounts in the fund balance of $1,066,215 above the three months operating costs of $365,614. Cause: Covid meal reimbursements exceeded the amounts that are normally received. Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Views of Since the $2,000,000 of local funds to totally remodeled the Responsible food service department at the Clinton Intermediate School Officials & Planned is not enough to offset the excess balance in the food service Corrective Action: department, our plan for reducing the program balance of an excess of $976,148.58 will be purchasing equipment and holding our contracted food service accountable for billing. During the fiscal year 2022/2023 Taher did not bill us for three months. They billed us in the 2023/2024 fiscal year