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THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

Office of P-20 Education Policy
Child Nutrition Program Administration
89 Washington Avenue, Room 375 EBA, Albany, NY 12234
Phone: (518) 473-8781 Fax: (518) 473-0018
To: 
School Food Service Directors/Managers
From: 
Child Nutrition Program Administration
Date: 
Thursday, September 26, 2024
Subject: 
Net Cash Resources, Excess Fund Balance Limits and Annual Financial Reporting

Federal regulations state that SFAs must limit their net cash resources (fund balance) to an amount that does not exceed three months’ average operating expenditures for their nonprofit food service account. Effective July 1, 2024, USDA has approved the New York State Education Department (SED) to increase the net cash resource limitation to six months average operating expenditures. SED will ensure compliance with net cash resources through annual reviews of SFAs' financial data. Click here to view the memorandum that provides guidance for managing net cash resources and instructions for submitting financial data.

Key points

  • Non-public SFAs, Charter Schools and Residential Childcare Institutes (RCCIs) must report financial data in the Child Nutrition Management System (CNMS) by October 31, 2024.
  • SFAs with six months or more excess net cash resources will be notified via e-mail, beginning in November, if an excess fund balance plan is required to be submitted to SED.

For comprehensive guidance on managing your nonprofit food service account, additional resources are available on the Child Nutrition Website Financial Management page.

USDA Nondiscrimination Statement

In accordance with federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, this institution is prohibited from discriminating on the basis of race, color, national origin, sex (including gender identity and sexual orientation), disability, age, or reprisal or retaliation for prior civil rights activity.

Program information may be made available in languages other than English. Persons with disabilities who require alternative means of communication to obtain program information (e.g., Braille, large print, audiotape, American Sign Language), should contact the responsible state or local agency that administers the program or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339.

To file a program discrimination complaint, a Complainant should complete a Form AD-3027, USDA Program Discrimination Complaint Form which can be obtained online at: https://www.usda.gov/sites/default/files/documents/ad-3027.pdf, from any USDA office, by calling (866) 632-9992, or by writing a letter addressed to USDA. The letter must contain the complainant’s name, address, telephone number, and a written description of the alleged discriminatory action in sufficient detail to inform the Assistant Secretary for Civil Rights (ASCR) about the nature and date of an alleged civil rights violation. The completed AD-3027 form or letter must be submitted to USDA by:

  1. mail:
    U.S. Department of Agriculture
    Office of the Assistant Secretary for Civil Rights
    1400 Independence Avenue, SW
    Washington, D.C. 20250-9410; or
  2. fax:
    (833) 256-1665 or (202) 690-7442; or
  3. email:
    Program.Intake@usda.gov

This institution is an equal opportunity provider.

Click here for Nondiscrimination Statement translations.

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