Finding Text
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 was unable to spend enough funds during the year to reduce the fund balance of the food service fund. 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 provides for reducing net cash resources to the allowable limit.