Forms | NSLP | Financial Report
All Contracting Entities (CEs) must ensure that the reported data accurately reflects the CEs financial operations for the 2021-2022 fiscal period reported.
The National School Lunch Program (NSLP) Financial Report is used to assess the financial management of the non-profit school food service account. This includes Seamless Summer Option (SSO), School Breakfast Program (SBP), Special Milk Program (SMP) and At-Risk Child and Adult Care Food Program (CACFP) funds. Fund identified as non-profit school food service accounts are typically the 240, 701 or 101 funds. Special Revenue Fund, 242, will also need to be accounted for in this report if funds were transferred into the 240, 701 or 101 funds.
Contracting Entities (CE) under the administration of the Texas Education Agency (TEA) must utilize their General Ledger and/or the Annual Financial & Compliance Report (AFR) submitted to TEA to complete the NSLP Financial Report for 2021-2022. Residential Child Care Institutions (RCCI) and private schools must use their Statement of Net Assets or Statement of Net Position (Balance Sheet) and Income Sheet with Reveneue and Expenditures to obtain their financial information. RCCI or private schools may have areas that are not applicable. For areas that are required but not applicable, enter zero.
For detailed guidance, CEs may reference the Preparing for the NSLP Financial Report form, Financial Report webinar, and the School Nutrition Programs Administrative Reference Manual (ARM) Section 16 located on https://squaremeals.org/Programs/National-School-Lunch-Program/Compliance/Financial-Report
Red Asterisks * indicate that question is required.
For all entries, do not use commas, dollar signs, negative (-) numbers, or any special characters. Decimals are not considered a special character.
You may complete this form at one time or in multiple sessions. At any point, if you want to save and finish later, click on the SAVE button at the bottom of the page. You will receive an email with a link to use to complete the form. Please use the edit link to make any changes.
Key Definition
Fiscal Year--Twelve-month period that an organization uses for budgeting, forecasting and reporting financial information. CEs under the administration of the Texas Education Agency (TEA) may use one of two fiscal year periods of July 1 to June 30 or September 1 to August 31.
Special Note Regarding Fund Types:
CEs must select both Special Fund 240 and 242, as applicable. Due to COVID-19, some CEs may have received reimbursements and utilized the Special Fund 242 for Seamless Summer Option (SSO) or Summer Food Service Program (SFSP). If so, then the CE should select both funds.
Net Cash Resources are all monies, as determined in accordance with the State Agency's established accounting system, that are available to or have accrued to a school food authority's nonprofit school food service 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. (7 CFR 210.2)
Net cash resources do not include inventories (USDA Foods or other food inventories), equipment, or other non-cash resources.
The Net Cash Resources calculation is (Total Assets-(Inventories)-Total Liabilities).
Districts and charter schools will utilize their finalized audited financial report, specifically, the combined balance sheet to report the child nutrition funds assets and liabilities. The general ledger may also be used to report this information. This should correlate with their district financial report where the special fund is reported. This should be the same information and values submitted to Texas Education Agency (TEA). Please note, discrepencies between the district's financial report and the NSLP financial report should be commented and noted.
For all entries, do not use commas, dollar signs, negative (-) numbers, or any special characters. Decimal points are not considered special charachers. If CEs do not have any cash, receivables or inventories, enter zero.
This is a good place to "save" and continue the report in another session. You will receive an email with the "Edit Submission" link to use when you are ready to continue working on the report.
Beginning Fund Balance
Any positive balance remaining in the Non-Profit School Food Service account at the end of the school year must be carried over to the next school year as the beginning balance in the Non-Profit School Food Service Account. CEs must supplement any negative fund balances with nonfederal funds. The Beginning Fund Balance should not reflect a negative amount. CEs who supplemented with nonfederal funds may have a zero balance or positive balance, CEs should enter the balance here.
For example, CEs who ended the year with a positive or zero fund balance in 2020-2021 will record the balance here.
Reimbursement
All CEs are required to comply with generally accepted accounting principles (GAAP) for federally funded programs as well as accounting and financial requirements that are specific to the Non-Profit Food Service revenue fund.
Note: In the entries below, CEs must indicate the type and amount of additional funding received. This funding must be included in the NSLP Financial Report. The additional funding may include the following:
These entries will not be duplicated. The entries in box a-e will not calculate, they are designed only to identify additional fundings. CEs must include this funding as it assigned the account code in the CEs general ledger and will include it in its total of that particular account.
For example, CEs who received EOC of $150.00 and assigned it to object code #5922, will add it to box a. Emergency Operational Costs and 11f i. National School Lunch Program. Again, entry into a. Emergency Operational Costs will only identify the funding and will not duplicate it. 11f i. will include the EOC funding as a total NSLP reimbursement.
CEs may access more information at regarding financial requirements in Section 16 of the Administrative Reference Manual (ARM) at www.squaremeals.org or Texas Education Agency's resource guide at www.tea.gov.
Utilizing your general ledger, the totals below must include all additional funding.
CEs are responsible for determing the account code used for additional funding.
Reminder, identification of these amounts have already been stated above.
If CEs do not have an object code that correlates with the funding below, they may use 11 d. Other Revenue. See above.
Expenditures
Below are the most common expenditures identified in the Detail General Ledger of the Non-Profit Food Service revenue fund. However, there may be expenditures not identified specifically below. CEs will utilize 15-f to 15-k to identify any other expenditures. All CEs are required to comply with generally accepted accounting principles (GAAP) for federally funded programs as well as accounting and financial requirements that are specific to the non-profit food service revenue fund. All expenditures must be necessary, reasonable, allocable and allowable.
End of Year Fund Balance
Any positive balance remaining in the Non-Profit School Food Service revenue fund account at the end of the school year must be carried over to the next school year as the beginning balance in the Non-Profit School Food Service Account.
CEs must not carry a negative fund balance at the end of the year. CEs must supplement the non-profit food service account from non-federal funds.
Part 3. Paid Lunch Equity (PLE)
Per COVID-19: Child Nutrition Response #106, CEs operating Summer Seamless Option (SSO) in 2021-2022 are exempt from the PLE provisions for SY 2021-2022. CEs operating National School Lunch Program (NSLP) are required to comply with the PLE provision. However, CEs must return to NSLP programs for SY 2022-2023 and review the need to raise Paid Lunch prices.
CEs who elected to operate NSLP rather than SSO for the SY 2021-2022, will complete this section and enter the information from the PLE tool from school year 2020-2021. The following questions are conditioned based on the CEs response. CEs must state whether the CE has a positive or zero balance based on the above information. This information will determine if the CE is eligible for the PLE exemption.
Part 4. Net Cash Resources Plan
Federal regulations (7 CFR 210.19 (a) (1)) require state agencies to monitor the level of net cash resources in a non-profit food service account. These regulations specifically require the level of net cash resources not to exceed three months average expenditures, as reported in the non-profit food service account.
CEs must provide a detailed current spending plan to reduce the resources in excess.
This plan could include improving the quality of meals or the purchase/replacement of food service equipment but is not limited to these items. The funds must be used for the support of the food service program pursuant to federal and state rules and regulations. All expenses must be necessary, reasonable, allocable and allowable.
Key Definitions:
Excessive Net Cash Resources is the unallowable amount of net cash resources remaining in the nonprofit school food service account at the end of the fiscal year less liabilities which has ended. CEs may not exceed three months of average monthly operating expenditures.
Net Cash Resources are all monies, as determined in accordance with the State agency's established accounting system, that are available to or have accrued to a school food authority's nonprofit school food service 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. (7 CFR 210.2)
Net Cash Resources calculation is (Total Assets-(Inventories)-Total Liabilities).
Operating Months are any months that the CE performs operational tasks. This includes reasonable amounts of time to close down program operations at the end of the school year and time to set up program operations at the beginning of the year as well as each month for which claims were submitted, including summer months if operating the Seamless Summer Option (SSO).
Total Expenditures are reported at the end of the most recent fiscal year.
Three Month Average Operating Expenses is the average of three months operating expenses. This is used to determine if the CE has an excess in net cash resources. In order for a CE to maintain the non-profit status, the CE cannot maintain more than three months operating expenses for their net cash resources.
Note: Total Number of Operating Months
If a CE operated an Seamless Summer Options (SSO) or Summer Feeding Service Program (SFSP) and the funds were transferred into the 240 account, the CE should account for those operational months as well as NSLP operating months.
TDA Approval of Net Cash Resource Plans
Upon review of the CEs plan, CEs will receive approval via email. Inquires regarding the status of their Net Cash Resource plans can be sent to school.operations@texasagriculture.gov.
Each party acknowledges and agrees that information in this form is attested to by the name entered in the field below and shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature.