Module: Risk Assessment for Resource Management Intent/Scope of Monitoring The intent and scope of monitoring in this section is to apply a systematic approach to ensuring the overall financial health of an SFA’s nonprofit school food service. This Section consists of a review of four areas integral to the financial health of the SFA’s school food service. The SA may always supplement the review activity to include additional areas. The monitoring areas are: Maintenance of the Nonprofit School Food Service Account The SA must ensure that revenues and expenses* under the nonprofit school food service account are in accordance with 7 CFR 210.14. The nonprofit school food service expenses must be allowable — used only for the operation and improvement of the school food service — and net cash resources may not exceed three months' average operating expenses. (7 CFR 210.14) Note: In assessing compliance with the Net Cash Resource’s provision we have chosen to use the word “expenditure” to be consistent with the regulations. In all other areas of the Resource Management Section we have chosen to use “expenses”. Paid Lunch Equity The SA must ensure that SFAs comply with the requirements for pricing paid lunches. (7 CFR 210.14(e)) Revenue from Nonprogram Foods The SA must ensure that SFAs comply with the requirements that revenues from the sale of nonprogram foods generate at least the same proportion of total school food service account revenues that expenses from the purchase of nonprogram foods contribute to total school food service account food costs.
Module: Risk Assessment for Resource Management Intent/Scope of Monitoring The intent and scope of monitoring in this section is to apply a systematic approach to ensuring the overall financial health of an SFA’s nonprofit school food service. This Section consists of a review of four areas integral to the financial health of the SFA’s school food service. The SA may always supplement the review activity to include additional areas. The monitoring areas are: Maintenance of the Nonprofit School Food Service Account The SA must ensure that revenues and expenses* under the nonprofit school food service account are in accordance with 7 CFR 210.14. The nonprofit school food service expenses must be allowable — used only for the operation and improvement of the school food service — and net cash resources may not exceed three months' average operating expenses. (7 CFR 210.14) Note: In assessing compliance with the Net Cash Resource’s provision we have chosen to use the word “expenditure” to be consistent with the regulations. In all other areas of the Resource Management Section we have chosen to use “expenses”. Paid Lunch Equity The SA must ensure that SFAs comply with the requirements for pricing paid lunches. (7 CFR 210.14(e)) Revenue from Nonprogram Foods The SA must ensure that SFAs comply with the requirements that revenues from the sale of nonprogram foods generate at least the same proportion of total school food service account revenues that expenses from the purchase of nonprogram foods contribute to total school food service account food costs.
Administrative%20Review%20Manual%20%20School%20Year%202015162.docx