Report 2013-046 All Recommendation Responses

Report 2013-046: Cafeteria Funds: Local Education Agencies Generally Use the Funds for Appropriate Purposes (Release Date: February 2014)

Recommendation #1 To: Anaheim Union High School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

6-Month Agency Response

Anaheim City School District and Anaheim Union High School District's general fund was invoiced by Anaheim Union High School District Food Service for incorrectly charged utility fees which was paid by check

May 30, 2014 Check Number 04098174(ACSD)$30,797.50 and June 11, 2014 Check Number 64119155 (AUHSD)$30,797.50.

Anaheim Union High School District was invoiced by Anaheim Union High School District Food Service for salary charged to the cafeteria fund with out required Personal Activity Report. The cafeteria fund was paid by AUHSD Check #64117821 $2047.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #2 To: Bakersfield City School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

60-Day Agency Response

Bakersfield City School District reimbursed the cafeteria fund in March 2014 for costs considered by the California State Auditor to be unallowable.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #3 To: Elk Grove Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

1-Year Agency Response

See auditor's comments under Public Assessment.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

60-Day Agency Response

Salary and Benefits - $5,589: Correction posted 4/21/14 (documentation sent via e-mail to J. Lewis on 4/28/14)

Indirect costs - $4,197: Correction provided 11/22/13

Interest - $3,883: Correction posted 4/23/14 (documentation sent via e-mail to J. Lewis on 4/28/14)

Utilities - $10,094: action pending

Miscellaneous - $2,223: action pending

California State Auditor's Assessment of 60-Day Status: Partially Implemented

Recommendation #4 To: Los Banos Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

6-Month Agency Response

On March 14,2014, the unallowable expenses were paid back to the Food Service Department in the amount of $ 14,828.00.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #5 To: Madera Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

60-Day Agency Response

Corrections have been made and copies of the journal entries were provided to the auditors.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #6 To: Mendota Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

Recommendation #7 To: Merced City School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

Recommendation #8 To: Napa Valley Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

60-Day Agency Response

A transfer was processed to reimburse the cafeteria fund for the unallowable costs.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #9 To: North Monterey County Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

60-Day Agency Response

The cafeteria fund was reimbursed on Jan 16, 2014 in the amount of $49,244.71. The correct indirect cost rate calculation was discussed and reviewed with the appropriate business office staff.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #10 To: Oakland Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

6-Month Agency Response

Money was transferred into Fund 13 from Fund 1

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #11 To: Paramount Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

60-Day Agency Response

P.U.S.D. refunded the Cafeteria Fund from the General Fund. We will mail supporting documentation(copy of the check). Additionally, we will review all guidance from the USDA and CDE so we better understand what these funds can be used for.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #12 To: Ravenswood Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

60-Day Agency Response

The unallowable expenditures of $3,209.00 were reimbursed to the cafeteria funds. The procedure has been modified to prevent reoccurance.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #13 To: San Diego Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

6-Month Agency Response

As to the disallowed charges for indirect costs, utilities and other support costs and misc. charges, SDUSD acknowledged errors and made the necessary corrections. Proof of correction of these items was sent to the Office of the State Auditor on January 28, 2014.

As to the disallowed interest, this issue was identified by the CDE in a prior audit. At the time the CSA audit commenced, SDUSD acknowledged the need to reimburse the cafeteria fund for interest charges, and that reimbursement was made in October 2013. SDUSD received communication from the Office of the State Auditor in June 2014, confirming receipt and acceptance of the reimbursement record. This recommendation should be closed.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #14 To: San Francisco Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

60-Day Agency Response

Transferred identified unallowable expenditures from resource #53100 in the amount of $9,712 to an unrestricted resource.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #15 To: Stockton Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

6-Month Agency Response

The District has made the repayment to the Cafeteria Fund.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

The District will review the recommendations and make the appropriate transfers prior to June 30, 2014.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #16 To: Sweetwater Union High School District

Local Education Agencies that used cafeteria funds for unallowable purposes should reimburse the cafeteria fund for those costs by June 30, 2014 if it has not already done so.

60-Day Agency Response

The General Fund reimbursed the Cafeteria Fund $32,875 which was the amount charged in interest. The District has ended the practice of charging interest to the Cafeteria Fund.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #17 To: Anaheim Union High School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

Recommendation #18 To: Bakersfield City School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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6-Month Agency Response

The Bakersfield City School District has established a binder that includes all USDA and CDE regulations pertaining to guidance on the allowable use of cafeteria funds. This binder has been reviewed by the District's Nutrition Services Director. Additional the Director and the Supervisor of the Nutrition Services Department are attending CDE workshops and webinars that focus on the administration of cafeteria funds.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

By June 30, 2014, Bakersfield City School District staff will review all guidance from the USDA and CDE to better understand what these funds may be used for.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #19 To: Elk Grove Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

60-Day Agency Response

Elk Grove USD Director of Food & Nutrition Services and Director of Fiscal Services attended the CDE - Nutrition Services Division, School Fiscal Services Division and Audits and Investigation Division meeting re: Overview of Administrative Review and Cafeteria Fund Training on April 11, 2014. A follow up meeting with other EGUSD staff is scheduled to discuss the information provided by CDE and implement any applicable changes.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #20 To: Los Banos Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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60-Day Agency Response

Reviewed all guidance from the U.S. Department of Agriculture and California Deparment of Education. Also will be going to a Cafeteria Fund and Administraive Review Regional Training put on by CDE on April 30, 2014.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #21 To: Madera Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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60-Day Agency Response

Guidance from the U.S. Department of Agriculture and California Department of Education have been reviewed.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #22 To: Mendota Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

Recommendation #23 To: Merced City School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

Recommendation #24 To: Napa Valley Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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60-Day Agency Response

The district will pay close attention in the future to make sure all costs are allowable.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #25 To: North Monterey County Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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6-Month Agency Response

The Child Nutrition Management staff and the Assistant Superintendent of Business will review quarterly all the USDA and California Department of Education regulations regarding using the cafeteria funds for allowable purposes.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #26 To: Oakland Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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6-Month Agency Response

Based on information provided by California Department of Education & USDA & working with OUSD's State & Federal Compliance Department, Nutrition Services implemented PAR's accounting. All Federally funding positions complete time accounting twice a year. All mixed funded positions, including those funded with State & Federal within Fund 13 AND co-funded between Fund 13 & Fund 1 complete time accounting on a monthly basis.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #27 To: Paramount Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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60-Day Agency Response

PUSD refunded the cafeteria fund from the general fund for a W.H. delivery person that did not work solely for the S.N.S. Department PUSD changed the funding source from the cafeteria fund to the general fund. We will mail the supporting documents to the State Auditors Office. Additionally, we will review all guidance from the USDA and CDE so we better understand what these funds can be used for.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #28 To: Ravenswood Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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60-Day Agency Response

District staff have reviewed all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #29 To: San Diego Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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6-Month Agency Response

San Diego Unified School District has fully implemented this recommendation. Finance Managers have reviewed the guidance from the US Department of Agriculture and the CA Department of Education on the use of the funds, and have worked with all budget/finance staff to clarify their understanding of "acceptable charges" to the cafeteria fund. Going forward, when new staff are hired into the finance division, a direct focus will be made on the authorized use guidelines. This recommendation should be closed.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #30 To: San Francisco Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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60-Day Agency Response

The appropriate staff members & the Director of the Student Nutrition Department have reviewed the appropriate guidance from the U.S. Department of Agriculture & the California Department of Education. They will complete an annual review of employees & determine if their federal time documentation can be satisfied by a periodic personnel certification or through a personnel activity report. Those employees working 100% time on the Federal Child Nutrition Programs will complete the semiannual periodic certification at the beginning of the year, fall semester, & subsequently at the beginning of the calendar year, & spring semester. Those employees determined to be working for both CNP & an additional activity or cost objective will complete a monthly PAR or equivalent documentation.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #31 To: Stockton Unified School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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6-Month Agency Response

We continue to work closely with the California Department of Education on guidance regarding expenditures and food-related items. The District will continue to communicate with the CDE, and the USDA. In addition, The District created a process to ensure appropriate oversight of the CHild Nutrition funds.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

The District will review the recommendations and make the appropriate transfers prior to June 30, 2014.

We continue to work closely with the California Department of Education on guidance regarding expenditures and food related items. The District will continue to communicate with the CDE and the USDA. In addition, the District will create a process that will ensure appropriate oversight of the Child Nutrition funds.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #32 To: Sweetwater Union High School District

Local Education Agencies that used cafeteria funds for unallowable purposes should, by June 30, 2014, review all guidance from the U.S. Department of Agriculture and the California Department of Education to better understand what these funds can be used for.

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60-Day Agency Response

We have reviewed guidance from the USDA and CDE governing allowable cafeteria expenditures to ensure future compliance with use of funds. An example of following that guidance is that all equipment purchases over $5000 is submitted to the CDE for approval before making the purchases.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #33 To: Anaheim Union High School District

With regard to excess net cash resources, Local Education Agencies should develop a spending plan to eliminate their net cash resources in excess of the amount allowed by June 30, 2014.

6-Month Agency Response

A three year spending plan was developed to eliminate the cafeteria funds excess net cash resources $3,703,781 within the three year recommendation.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #34 To: Los Banos Unified School District

With regard to excess net cash resources, Local Education Agencies should develop a spending plan to eliminate their net cash resources in excess of the amount allowed by June 30, 2014.

Annual Follow-Up Agency Response From February 2015

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

1-Year Agency Response

In order to draw down on our Net Cash Resources all of the Food Service Department employees were reclassified resulting in a two range change for all of them.

Added employees as needed.

Two 17 year old vans were replaced to deliver food.

Software and hardware were updated for point of service.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

Working with CDE on a spending plan.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

Submited to School Nutrition Programs Unit the Net Cash Resource form on March 21,2014. Which is the first step in developing a spending plan. Waiting for a response from SNPU.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #35 To: North Monterey County Unified School District

With regard to excess net cash resources, Local Education Agencies should develop a spending plan to eliminate their net cash resources in excess of the amount allowed by June 30, 2014.

60-Day Agency Response

The District has submitted a two year spending plan to the CDE, Mr. James Rickner, Nutrition Services Analyst. This plan is being submitted with the evidence packet being pulled together. The first phase of spending down the excess balances shall occur in May of this year; the second phase will occur over the summer months when students are not present. Recall that the District had planned a major kitchen renovation at the high school, and will be accumulating excess balances in order to pay for those renovations in the future.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #36 To: Anaheim Union High School District

With regard to excess net cash resources, Local Education Agencies should submit a spending plan to CDE for approval by June 30, 2014.

6-Month Agency Response

Undocumented employee salaries have been paid back to cafeteria fund.

Utility cost have been paid back to the cafeteria fund.

A spending plan has been approved by Ca Dept of Ed. to reduce excess net cash resorces

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #37 To: Bakersfield City School District

With regard to excess net cash resources, Local Education Agencies should submit a spending plan to CDE for approval by June 30, 2014.

6-Month Agency Response

On June 26, 2014, the District submitted its plan to CDE for approval. This plan demonstrates that the District has significantly reduced its excess spending balance during 2013-14, will continue to significantly reduce its excess spending balance during 2014-15, and will completely eliminate its excess spending balance during the fiscal year 2015-16.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

By June 30, 2014, Bakersfield City School District will submit a spending plan to CDE for approval.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #38 To: Los Banos Unified School District

With regard to excess net cash resources, Local Education Agencies should submit a spending plan to CDE for approval by June 30, 2014.

Annual Follow-Up Agency Response From August 2015

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

1-Year Agency Response

Working with the CDE on a spending plan

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

Working with CDE on a spending plan

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

Working with School Nutrition Programs Unit on developing a plan. Waiting for response from SNPU.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #39 To: North Monterey County Unified School District

With regard to excess net cash resources, Local Education Agencies should submit a spending plan to CDE for approval by June 30, 2014.

60-Day Agency Response

Spending plan submitted to CDE, Mr. James Rickner.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #40 To: San Bernardino City Unified School District

With regard to excess net cash resources, Local Education Agencies should submit a spending plan to CDE for approval by June 30, 2014.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

60-Day Agency Response

San Bernardino City Unified School District will submit the developed spending plan to CDE for approval prior to June 30, 2014.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #41 To: Bakersfield City School District

With regard to nonprogram foods, Local Education Agencies should create and implement a system to track their nonprogram foods costs and/or nonprogram foods revenues by June 30, 2014.

6-Month Agency Response

The District has discontinued its non-program food sales, with the exception of milk, water, juice and tea(adults only). Point of sale computers will record the sale of these items and a monthly report of items sold and related revenue will be generated. The District will track costs using bid and invoice documents.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

By June 30, 2014, Bakersfield City School District will track non-program food costs and revenues.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #42 To: Elk Grove Unified School District

With regard to nonprogram foods, Local Education Agencies should create and implement a system to track their nonprogram foods costs and/or nonprogram foods revenues by June 30, 2014.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

60-Day Agency Response

District continues to track the majority of non program foods costs and revenue for the 2013-14 school year. For a small number of items, the District is working to find a true nonprogram cost as the items are not sold solely as nonprogram foods but are comingled into total food costs. Once tracking is complete for the 2013-14 school year, the District will utilize the Nonprogram Food Tool, provided by USDA, to determine whether the revenues from the sale of nonprogram foods cover the cost of those same foods.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #43 To: Long Beach Unified School District

With regard to nonprogram foods, Local Education Agencies should create and implement a system to track their nonprogram foods costs and/or nonprogram foods revenues by June 30, 2014.

1-Year Agency Response

The plan has been fully implemented to track NPF costs and revenues. POS parameters were added to capture specific data on NPF sales at schools. School site supervisors were instructed on new procedures in August 2014 (Opening meeting agenda and sign-in sheets: Attachment A). Cafeteria accounting compiles NPF data each month. Each category of NPF is being evaluated separately during the year. Categories include: catering, vended meals to Head Start and to the City of Long Beach, adult meals and a la carte sales at schools (Attachments B and C).

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

All computerized POS systems have been updated with new parameters to track a la carte and adult sales at schools. An excel spreadsheet will be used at locations that do not use the automated POS. All supervisors were trained on the new procedures during meetings held on August 19 and 20, 2014. They, in turn, will train their staff at the school sites (school begins 9/3/14). All NPF for vended meals (City Parks, Head Start, etc.) are tracked separately.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

We began tracking catering sales using an Excel spreadsheet in March 2014. We have formulated a plan to change our POS system settings to track a la carte and adult sales at the point of service; thus eliminating the need to manually track these sales. We believe this is more efficient and a better use of our limited resources. We plan on implementing this change beginning SY 2014-15. Site staff is scheduled to be trained in August and September 2014 on the new accounting and POS procedures.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #44 To: Mendota Unified School District

With regard to nonprogram foods, Local Education Agencies should create and implement a system to track their nonprogram foods costs and/or nonprogram foods revenues by June 30, 2014.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

Recommendation #45 To: Merced City School District

With regard to nonprogram foods, Local Education Agencies should create and implement a system to track their nonprogram foods costs and/or nonprogram foods revenues by June 30, 2014.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

Recommendation #46 To: Napa Valley Unified School District

With regard to nonprogram foods, Local Education Agencies should create and implement a system to track their nonprogram foods costs and/or nonprogram foods revenues by June 30, 2014.

60-Day Agency Response

Our contracted company Sodexo will provide for us on a monthly basis an accounting of all non program foods so we can then transfer these costs into an account that is managed by a code to differentiate between non program and program costs. The revenue process is already being tracked between no program and program revenue.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #47 To: North Monterey County Unified School District

With regard to nonprogram foods, Local Education Agencies should create and implement a system to track their nonprogram foods costs and/or nonprogram foods revenues by June 30, 2014.

6-Month Agency Response

The District has a written policy to account for non-program foods separately. Catering sales (within the District) and non-program food activities will now be tracked using Fund 13 Resource 0000 and Function 6000 Enterprise. All Sales and purchase orders will be specifically coded to these account components. We have instructed our vendors to submit separate invoices to align with the PO's cut for catering and non-program foods. The Child Nutrition staff have been trained on this new procedure. The Food Service administrative assistant shall bill and record sales and deposits in these account components.

The Nutrikids POS system will capture by site the revenue of ala carte and vending machine sales.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

The District has written a policy to account for non-program foods separately.

Catering sales (within the District) and non-program food activities will now be tracked using Fund 13 Resource 0000 and Function 6000 Enterprise. All sales and purchase orders will be specifically coded to these account components. Vendors will be required to submit separate invoices to align with the PO's cut for catering and non-program foods. The Food Service administrative assistant shall bill and record sales and deposits in these account components.

The NutriKids POS system will capture by site the revenue of ala carte and vending machines sales.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

Recommendation #48 To: Oakland Unified School District

With regard to nonprogram foods, Local Education Agencies should create and implement a system to track their nonprogram foods costs and/or nonprogram foods revenues by June 30, 2014.

6-Month Agency Response

Non-Program Food Costs Tracking System

Effective July 1, 2014

1. During summer months, non-program food associated costs & revenues will be reviewed.

2. The review criteria will include:

a. Total Revenue

b. Non-Program Food Costs

c. Total Food Costs

d. Price charged to adults

3. The nonprogram costs will then be compared using the following formula

Total Revenue X Nonprogram Foods Cost/Total food Costs = Minimum Amount of

Nonprogram Foods Revenue

4. Prices will then be adjusted based on these results.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Recommendation #49 To: Paramount Unified School District

With regard to nonprogram foods, Local Education Agencies should create and implement a system to track their nonprogram foods costs and/or nonprogram foods revenues by June 30, 2014.

60-Day Agency Response

P.U.S.D. created a locally defined resource code to track nonprogram food costs and nonprogram food revenue. P.U.S.D will comply with the federal regulations governing nonprogram foods by tracking nonprogram food costs and revenues and generating the required amount of nonprogram foods revenue. P.U.S.D. will mail the supporting documents to the State Auditors Office.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #50 To: Ravenswood Unified School District

With regard to nonprogram foods, Local Education Agencies should create and implement a system to track their nonprogram foods costs and/or nonprogram foods revenues by June 30, 2014.

60-Day Agency Response

With regard to nonprogram foods, the district has created and implemented a system to track their nonprogram foods costs and/or nonprogram foods revenues. The district is using the USDA spreadsheet to trac these costs and revenues.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #51 To: Bakersfield City School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

6-Month Agency Response

The District will utilize the form provided in Management Bulletin #USDA-SNP-36-2012 to demonstrate that it is generating at least the minimum required amount of non-program food revenues, and will make any adjustments necessary to meet federal requirements.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

By June 30, 2014, Bakersfield City School District will determine that it is meeting federal requirements with regard to non-program foods revenues.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #52 To: Elk Grove Unified School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

60-Day Agency Response

At the end of the 2013-14 school year, the District will determine whether they are generating at least the minimum required amount of nonprogram foods revenue to cover the costs incurred. At that time the District will make any necessary changes as directed in USDA guidance.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #53 To: Long Beach Unified School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

6-Month Agency Response

Review of of NPF revenues will be completed at the end of 2014-2015 FY. The sale price of any NPF will be adjusted as needed for the 2015-2016 FY to comply with regulations.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

Past business practices are being used to adjust prices for the 2014-2015 school year.

We will be able to determine whether we are generating the minimum required revenue after the above plan is fully implemented. At that time, we will make the necessary adjustments to meet this requirement in 2015-2016.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #54 To: Mendota Unified School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

Recommendation #55 To: Merced City School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

Recommendation #56 To: Napa Valley Unified School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

60-Day Agency Response

The district will track non program costs and revenues and so an analysis to determine the increase needed for catering to be in compliance.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #57 To: North Monterey County Unified School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

1-Year Agency Response

Since July 1, 2014 the North Monterey County USD Business office set up the Child Nutrition Budget to include a Resource #6000 Enterprise to track all income accrued and expenses incurred of all non-program coast. Resource #6000 Enterprise was added to the following objects:

8634- Food Service Sales. 4700- Food Purchases. The Child Nutrition Department calculated the non-program Food Revenues. The calculations revealed our department was charging the correct pricing for the ala carte/catering program. The calculations documented our revenue exceeded the minimum required amount by $2457.00. A copy of our calculation will be sent to Jerry Lewis.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

Now that the District has the ability to track non-program foods separately, the first calculation will be performed in December for the period of July through November to allow the Child Nutrition Director time to review and make any necessary adjustments. A second calculation will be run during the month of March 2015 for the period of December through February to again check for compliance with federal requirements.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

Now that the District has the ability to track non-program foods separately, the first calculation will be performed in December for the period of July through November to allow the Student Nutrition Director time to review and make any necessary adjustments. A second calculation will be run during the month of March 2015 for the period of December through February to again check for compliance with federal requirements.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #58 To: Oakland Unified School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

6-Month Agency Response

All adult & a la carte prices have been adjusted based on formula provided earlier. Still reviewing catering & market data.

California State Auditor's Assessment of 6-Month Status: Pending

Recommendation #59 To: Paramount Unified School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

60-Day Agency Response

P.U.S.D. created a locally defined resource code to track nonprogram food revenue to assure we generate the required amount of nonprogram food revenue to cover the costs of nonprogram food costs. We will mail the supporting documentation to the State Auditors Office.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #60 To: Ravenswood Unified School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

60-Day Agency Response

Utilizing the USDA spreadhsheet it was determined that the district is generating at least the minimum required amount of nonprogram foods revenues.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

Recommendation #61 To: Sweetwater Union High School District

With regard to nonprogram foods, Local Education Agencies should determine whether they are generating at least the minimum required amount of nonprogram foods revenues and, if they are not, make the adjustments necessary to generate in fiscal year 2014-15 the amount of nonprogram foods revenues needed to meet federal requirements.

1-Year Agency Response

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The school district provided its response to our recommendations to the California Department of Education. Our review of that response found that the school district fully implemented our recommendations.

60-Day Agency Response

The District will adjust sales prices for non-program food sale(catering and Ala Carte) effective July 1,2014

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #62 To: Education, Department of

To ensure that the spending plans Local Education Agencies (LEAs) create to eliminate excess net cash resources in their cafeteria funds are adequate, effective, and fully executed, the California Department of Education (CDE) should, by July 1, 2015, begin requiring LEAs to develop a spending plan, or revise an existing spending plan if it will not fully reduce the entire excess, and submit it to CDE for approval within three months after the end of each fiscal year that their cafeteria funds have net cash resources above the federal limit.

1-Year Agency Response

The CDE approved all of the LEAs' corrective actions and continues to monitor each spending plan to ensure that they are adequate, effective, and fully executed to eliminate excess net cash reserves

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

The CDE continues to ensure that LEAs' spending plans are adequate, effective, and fully executed to eliminate excess net cash reserves. In addition, by July 1, 2015, the CDE will annually require LEAs that report excess NCRs to develop or revise existing spending plans or budget agreements as needed to ensure LEA compliance with the federal cafeteria fund limitations.

California State Auditor's Assessment of 6-Month Status: Pending

Recommendation #63 To: Education, Department of

To ensure that the spending plans Local Education Agencies (LEAs) create to eliminate excess net cash resources in their cafeteria funds are adequate, effective, and fully executed, the California Department of Education should, by July 1, 2015, make adjustments in the rate of reimbursement to an LEA under the child nutrition programs if that LEA cannot eliminate its entire excess net cash resources within a defined time frame.

Annual Follow-Up Agency Response From August 2015

See California State Auditor's Assessment of Status.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Based on our review of a selection of LEA's spending plans, the spending plans, if followed, will eliminate the excess net cash resources within a defined time frame. Consequently, CDE did not have a need to, nor did it, adjust any of the LEA's rates of reimbursements.

1-Year Agency Response

Commencing July 1, 2015, the CDE will annually require LEAs that report excess NCRs to develop or revise existing spending plans or budget agreements as needed. This will ensure LEA compliance with federal cafeteria fund limitations; if needed, CDE will take further action on a case-by-case basis.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

If an LEA is not successful in eliminating its entire excess net cash resources within a specified time frame, the CDE will take further action on a case-by-case basis, including: (1) holding the LEAs' claims for reimbursement until the excess balances are appropriately reduced, or (2) reducing the LEAs' future state meal reimbursement rates.

California State Auditor's Assessment of 6-Month Status: Pending

All Recommendations in 2013-046

Agency responses received are posted verbatim.