Excess Net Cash Resources for School Year 2020-21
Per Title 7, Code of Federal Regulations, Section 210.19 (a)(1), the California Department of Education (CDE) is required to ensure compliance with the requirements to limit and monitor the net cash resources (NCR) of the nonprofit school food service account, also known as the cafeteria fund, of each program operator.
Program operators that may have NCR in excess of the three months’ limitation may need a budget agreement, which is a plan to spend down excess funds. Therefore, the Nutrition Services Division is requesting all program operators that may have excess NCR at the end of School Year 2020–21 complete 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 calculator, no further action is necessary. However, if an excess is indicated, please send a copy of Form SNP-57 to the Resource Management Unit (RMU) as well as a copy of the financial report (i.e. Unaudited Actuals) used to complete the form by email to SNPBA@cde.ca.gov to evaluate whether a budget agreement is necessary. The due date for your response is October 1, 2021.
In an effort to provide flexibility to school food authorities (SFA) due to COVID-19 and the influx of additional federal and state funds, the CDE is exploring the ability to increase the NCR limitation, allowing SFAs to possibly carry over three months’ average expenditures in their cafeteria fund without requiring a budget agreement. Until the CDE’s policy has been officially updated, we will continue to monitor SFAs that exceed the three month limitation. More information regarding this potential change is forthcoming.
If you were previously approved for a budget agreement, the RMU will contact you individually. Information on budget agreements and excess NCR can be found in Management Bulletin SNP-06-2020.
If you have any questions regarding this matter, please contact the RMU by email at SNPBA@cde.ca.gov.