PARADISE INDEPENDENT SCHOOL DISTRICT

a. Condition: Cash funds for the food service program were in excess of the allowed 3 months average expenditures by $66,067. b. Criteria: Federal funding requires that the lunchroom cash balances should not exceed the average 3 months spending. c, Cause: The actual cash balances as of August 31, 2023, exceeded the allowed 3 month average spending amount by $66,067. d. Effect: Excess Cash Balances were held by the District of $66,067 as of August 31, 2023. e. Recommendation: The District should review their current needs for equipment, charges for student meals, etc. and develop a plan for the reduction of cash balances in the lunchroom fund. f. District Response: The District will review their current needs for equipment, charges for student meals, etc. and develop a plan for the reduction of cash balances in the lunchroom fund during the current year ended August 31, 2024.

The findings identified for the current year of an excess cash balance in the lunchroom fund will be reviewed by the Superintendent, Business Manager, and the Board of Trustees. The review will include determining the District’s current needs for equipment, amounts charged for student meals, and other food service expenditures to determine the best course of action for the District to reduce the excess cash balance in the food service program.