Capital Expenditures in the National School Lunch Program
School Food Authorities (SFAs) are required to obtain purchasing approval from the Florida Department of Agriculture and Consumer Services (FDACS) prior to incurring the cost of equipment and other capital expenditures with a per-unit acquisition cost of $5,000 or more and accruing to an SFA’s nonprofit school food service account. To request approval, SFAs must complete the Capital Expenditures Preapproval Request Form [ Adobe PDF Document ].
Prior to submitting a request, check the
Capital Equipment Approved Item List
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. This equipment list has been approved by the U.S. Department of Agriculture's Food and Nutrition Service. Any item on this equipment list receives automatic FDACS approval without needing to submit this request.
Excess Net Cash Resources in the National School Lunch Program
Per 7 CFR 210.14, a National School Lunch Program sponsor shall limit its net cash resources to an amount that does not exceed three months' average expenditures for its nonprofit school food service. The SFA is determined not to be in compliance if the fund balance as of June 30, considering any non-spendable fund balance, is in excess of three months' average expenditures. If an excess fund balance occurs, the SFA is required to complete the National School Lunch Program Corrective Action Plan for Excess Net Cash Resources.
If the SFA has maintained an excess fund balance over multiple years, and corrective action has not been appropriately taken to prevent reoccurrence, a finding during an Administrative Review may be issued. To prevent a finding, SFAs must be diligent in working on decreasing the fund balances to below three months' average expenditures.
Non-Program Food Revenue in the National School Lunch Program
Non-program foods include any non-reimbursable foods and beverages purchased using funds from the nonprofit school food service account. This encompasses all foods sold in schools as well as adult meals, foods sold outside of school hours or any foods used for catering or vending activities. For the majority of SFAs, a la carte foods offered during meal service account for the largest share of non-program foods. SFAs are required to determine if the percent of total revenue that is generated from their non-program food sales is equal to or greater than the percent of total food costs that are attributable to the SFA’s purchase of non-program foods. Each year FDACS requests this information from sponsors via the Non-Program Food Revenue Tool (districts) or the Statement of Financial Performance (non-districts).
For more information, see
Nonprofit School Food Service Account Non-Program Food Revenue Requirements
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(USDA Memo SP 20-2016).
Paid Lunch Equity
"School Food Service Account Revenue Amendments Related to the Healthy, Hunger-Free Kids Act of 2010” requires SFAs participating in the National School Lunch Program to ensure sufficient funds are provided to the nonprofit school food service account for lunches served to students not eligible for free or reduced-price meals. There are two ways to meet this requirement: either through the prices charged for “paid” lunches or through other non-federal sources provided to the nonprofit school food service account.
For more information, see Paid Lunch Equity School Year 2019-2020 Calculations and Tool (USDA Memo SP 20-2012).
Paid Lunch Equity: Guidance for School Year 2020-21
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Audits
A non-federal entity that expends $750,000 or more during the non-federal entity's fiscal year in federal awards must have a single or program-specific audit conducted for that year. FDACS obtains these audits each year from program sponsors to ensure compliance.
Unused Reimbursement in the Summer Food Service Program
Unused reimbursement is the difference between the amount received from a Claim for Reimbursement and program costs, should the reimbursement exceed the costs. For example, if a sponsor received $1,000 from a Claim for Reimbursement and spent $900 in program costs, $100 would be left in unused reimbursement. Sponsors are expected to manage financial resources so that a well-run, quality summer meal service does not result in a significant amount of unused reimbursement. However, should a sponsor have unused reimbursement, the funds must be used to benefit the Summer Food Service Program, or another Child Nutrition Program operated by the sponsor, during the subsequent year. This information is reported to FDACS on the Summer Food Service Program Unused Reimbursement Certificate [ Adobe PDF Document ] by December 31.