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Meeting Date:
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11/30/2017 - 7:00 PM
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Category:
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New Business and Reports to the Board
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Type:
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Info
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Subject:
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Appropriation of Additional School Nutrition Fund Balance
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ACPS 2025 Strategic Plan Goal:
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Objective 5.5 Healthy Meals and Nutrition ACPS will ensure that all students are ready to learn by having the benefit of access to nutritious, appealing school meals and that lessons on the importance of nutritious foods are included in the curriculum. Objective 6.1 Fiscal Policies and Practices ACPS will plan, manage, monitor, and report spending to provide decision-makers and the community with a reliable, accurate, and complete view of the financial performance of the educational system at all levels.
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Funding Source or Fiscal Impact (where applicable)
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File Attachment:
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Agenda Item Summary:
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The George Washington Middle School and Francis C. Hammond Middle School cafeteria improvement projects are scheduled for completion using FY 2018 funding at an estimated total cost of $1.9 million. The amount required for these projects is currently held within the $5.2 million in School Nutrition Fund Balance at the end of FY 2017. An additional School Board appropriation is required to release this $1.9 million for spending. Following this recommended appropriation, the remaining $3.3 million in School Nutrition fund balance will represent just over three months of net cash resources.
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Background:
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The U.S. Department of Agriculture (USDA), which administers the National School Lunch Program, stipulates that cash reserves may not exceed three months of operating expenses. If an excess balance should occur, the school division must take steps to reduce the balance or have an acceptable plan for using surplus revenues. Based on the FY 2017 Virginia Department of Education (VDOE) Financial Report for ACPS, the school nutrition program held 4.96 months in net cash resources for the period ending June 30, 2017 which represents excess reserves of approximately $1.96 million.
VDOE requested and approved a corrective action plan from ACPS School Nutrition Services to reduce the excess fund balance reserves in order to remain in compliance with USDA regulations. The recommendations were to renovate the George Washington cafeteria, serving lines and kitchen prep area. The remaining excess reserve was recommended to support a cafeteria and serving line renovation for Francis C. Hammond.
The attached Alexandria City Public Schools SNS Facilities and Equipment Assessment Executive Summary was completed in 2016 by a team of third-party consultants. This report supports the need for cafeteria improvement projects at these two schools.
The recommendations on how to spend the School Nutrition Funds balance were outlined in the “Cafeteria Modernization” plan presented to the ACPS School Board, as information only, at the March 2016 School Board meeting and then subsequently approved by the Board in April 2016.
The George Washington and Francis C. Hammond projects were not completed during the summer of 2017 due to competing needs at those schools and, consequently, the funds allocated for this project were assigned to School Nutrition fund balance during the financial closeout of FY 2017.
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Recommendation:
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The Superintendent recommends that the School Board review this information in preparation for a supplemental appropriation resolution on December 14, 2017.
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Approvals:
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Recommended By:
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Signed By:
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Richard Jackson - Interim Director of Educational Facilities
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Signed By:
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Lois Berlin -
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