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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: 
Monday, August 25, 2025
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. SED will ensure compliance with net cash resources through annual reviews of SFAs' financial data. This memorandum 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 September 30, 2025.
  • SFAs with six months or more excess net cash resources are required to submit an excess fund balance spending plan to SED. Notification will be sent beginning in November.

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 USDA civil rights regulations and policies, the USDA, its agencies, offices, employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the state or local agency that administers the program or contact USDA through the Telecommunications Relay Service at 711 (voice and TTY). Additionally, program information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at How to File a Program Discrimination Complaint and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:

  1. Mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Mail Stop 9410, Washington, D.C. 20250-9410;
  2. Fax: (202) 690-7442; or
  3. Email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.

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