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Food services running positive monthly income but faces overdue state reimbursements and unpaid student meal debt
Summary
The finance committee heard that school food services reported net income but is owed over $1 million in state reimbursements and faces $50,000–$100,000 in unpaid meal balances; staff discussed collection limits and possible use of fund balance to cover shortfalls.
Jan. 27 — Stratford School District’s food services program reported a positive monthly net income but staff warned that delayed state reimbursements and unpaid student meal balances leave unresolved risks for the district.
District finance staff told the finance committee that the food service monthly net income through November was $211,316 and that the district was owed “a little over $1,000,000” in state reimbursements. Miss Mangini, who presented the report, said Sodexo (the district’s food-service contractor) is planning to apply for a state grant to support menu and participation improvements.
Committee members and staff discussed unpaid meal balances and fund-balance rules. Miss Mangini said unpaid student meal debt is currently about $50,000 and could grow to nearly $100,000 by the end of the year because state law limits district collections; she said the district has “not had a deficit in 3 years” but that unpaid meals remain a collection problem. She added the district is working with school counselors and guidance staff to encourage families to apply for free or reduced-price meals where eligible.
The committee discussed the food-service fund balance and allowable uses. Staff reported a food-service fund balance of roughly $1 million and noted that districts may keep up to three months of operating expenses in that fund; excess funds have been used in recent years to repair and replace cafeteria equipment, which reduced pressure on the general operating budget. Mr. Hunter asked for and received clarification that the spend-down plan and equipment repairs are recorded in district expenditure reports.
Committee members also raised practical collection issues: parents sometimes stop receiving notifications from the MySchoolBooks app and principals, guidance counselors and attendance and outreach staff may need to coordinate to reach families with overdue balances. Miss Mangini said the district sends notices through the MOSAIC system and that some schools also accept cash or checks which are posted to the child’s account.
Food-service staff said they continue to monitor state guidance from the Child Nutrition Program, and that district staff planned a meeting with the state Child Nutrition Program to confirm whether prior permissions to use operating funds to cover unpaid meals will continue.
