Net Cash Resource and Budget Agreement Update
The California Department of Education (CDE) is required to ensure program operator compliance with the limitation of net cash resources (NCR) in the nonprofit school food service account (cafeteria fund). Effective July 1, 2022, the CDE increased the cafeteria fund NCR limitation to six months of average operating expenditures.
To ensure compliance, program operators that have NCR of six months or more will be required to enter into a budget agreement with the CDE. A budget agreement is a plan to spend down excess funds over a period of time.
The Resource Management Unit (RMU) is requesting all program operators to evaluate their NCR compliance for School Year 2021–22. Program operators may evaluate compliance by completing Form SNP-57, Net Cash Resources Calculator, which can be found in the Download Forms section of the Child Nutrition Information and Payment System.
If no excess is indicated after completing the NCR Calculator, no further action is necessary. However, if an excess is indicated, please send a copy of the NCR Calculator Form SNP-57 and the corresponding financial report (i.e., Unaudited Actuals) to the RMU by email at SNPBA@cde.ca.gov. Please provide all required documentation by November 1, 2022.
The RMU will evaluate whether a budget agreement is necessary.In addition, the RMU will contact program operators with a previously approved budget agreement to evaluate if adjustments are needed.
Information about the NCR limit and budget agreements can be found on the Cafeteria Fund Guidance web page at, tab NCR at Cafeteria Fund Guidance web page.
If you have any questions regarding this matter, please contact the RMU by email at SNPBA@cde.ca.gov.