To ensure that the spending plans Local Education Agencies (LEAs) create to eliminate excess net cash resources in their cafeteria funds are adequate, effective, and fully executed, the California Department of Education should, by July 1, 2015, make adjustments in the rate of reimbursement to an LEA under the child nutrition programs if that LEA cannot eliminate its entire excess net cash resources within a defined time frame.
See California State Auditor's Assessment of Status.
Based on our review of a selection of LEA's spending plans, the spending plans, if followed, will eliminate the excess net cash resources within a defined time frame. Consequently, CDE did not have a need to, nor did it, adjust any of the LEA's rates of reimbursements.
Commencing July 1, 2015, the CDE will annually require LEAs that report excess NCRs to develop or revise existing spending plans or budget agreements as needed. This will ensure LEA compliance with federal cafeteria fund limitations; if needed, CDE will take further action on a case-by-case basis.
If an LEA is not successful in eliminating its entire excess net cash resources within a specified time frame, the CDE will take further action on a case-by-case basis, including: (1) holding the LEAs' claims for reimbursement until the excess balances are appropriately reduced, or (2) reducing the LEAs' future state meal reimbursement rates.
Agency responses received are posted verbatim.