Understanding Net Cash Resources [Food And Nutrition Service]: A Comprehensive Guide
Definition & Meaning
Net cash resources refer to all funds that are available to a school food authority's nonprofit school food service at any given time, minus any cash that is owed. This includes various forms of money such as cash on hand, cash receivable, earnings from investments, cash in bank accounts, and the value of stocks, bonds, or other negotiable securities. Understanding net cash resources is crucial for managing the financial aspects of school nutrition programs effectively.
Legal Use & context
Net cash resources are primarily used in the context of the National School Lunch Program and other child nutrition programs. These resources are essential for ensuring that school food authorities can meet operational needs and comply with federal regulations. Users can manage their financial records and reporting through tools provided by services like US Legal Forms, which offer templates for financial documentation.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A school food authority has $10,000 in cash on hand, $5,000 in receivables, and $2,000 in earnings from investments. Their net cash resources would be $17,000, assuming no cash payable.
Example 2: A nonprofit school food service has $8,000 in cash deposits, $3,000 in stocks, and $1,000 in cash payable. Their net cash resources would be $10,000 ($8,000 + $3,000 - $1,000).