Published: 1 years 143 days ago
" Beginning in School Year 2024-2025, TDA will allow School Food Authorities (SFAs) to retain an amount of net cash resources in their food service accounts not to exceed six months’ average expenditures (expanded from a three-month threshold). This change is not retroactive, and any SFA that has already submitted a spend-down plan for having an excess of three months’ average expenditures in its account must adhere to its submitted plan.
"
Beginning in School Year 2024-2025, TDA will allow School Food Authorities (SFAs) to retain an amount of net cash resources in their food service accounts not to exceed six months’ average expenditures (expanded from a three-month threshold). Net cash resources are defined as all monies that are available to or have accrued to a school food authority's nonprofit school food service account at any given time, less cash payable. Such monies may include, but are not limited to, cash on hand, cash receivable, earnings on investments, cash on deposit and the value of stocks, bonds, or other negotiable securities.
Note that this change is not retroactive, and any SFA that has already submitted a spend-down plan for having an excess of three months’ average expenditures in its account must adhere to its submitted plan. Currently, this expansion only applies to SFAs operating NSLP; the three-month threshold remains in place for Contracting Entities only operating CACFP or SFSP.
SFAs who identify 6 months or greater in net cash resources at the end of their SFA fiscal year are encouraged to submit a spend-down plan for TDA approval prior to the deadline of the Financial Report. In mid-July, TDA will release an updated Excess Net Cash Resources Plan form to reflect the expansion of the excess net cash resource threshold, and a subsequent ARM update will be published at the end of July.
###