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Auditors warn food service fund holds excess cash; district taking steps to draw it down
Summary
Auditors flagged excess cash in the district's food service (enterprise) fund and said the district reduced meal prices and expects the issue to resolve within a year or two as the fund spends down the surplus.
Auditors told the board the district’s food service enterprise fund is holding excess cash resources beyond Department of Agriculture guidance, a recurring management-report finding.
“We do have 1 finding as it relates to the auditors management report... the food service management fund,” Jerry Convey said. He explained some of the excess stemmed from COVID-era federal support and that recent steps — including a deliberate reduction in meal prices — are intended to draw down the surplus.
In response to a board question about timing, conveyed estimates the matter could resolve in fiscal year 25 or 26, or at the latest the following year, assuming current spending and pricing actions continue to reduce the cash balance. The auditors emphasized the excess cash can only be used within the enterprise fund.
