Manage Program Finances

Effective financial management helps sponsors operate efficient, compliant and sustainable child nutrition programs. Use this page to find requirements, budgeting tools, financial reporting resources and guidance for managing the nonprofit school food service account.

Requirements

Sponsors are responsible for maintaining the financial health of the food service program. This includes following generally accepted accounting principles for federally funded programs and applying accounting and financial requirements specific to Child Nutrition Programs.

The school food service account must support the operation and improvement of the school meals program. Funds should be used to help provide nutritious, appealing meals that meet USDA meal pattern requirements.

Financial management is reviewed through the Resource Management section of the Administrative Review.

Budgeting & Financial Tools

Use these tools to support budgeting, staffing, operational planning and financial decision-making.

Calculate Nonprogram Revenue and Pricing

Nonprogram Revenue

Sponsors must determine whether revenue from nonprogram foods generates at least the same proportion of revenue as those foods contribute to food costs. View the nonprogram revenue requirements policy.

For an accessible PDF version of the Simplified Approach Calculator and Nonprogram Revenue Tool, please contact Rachel Matson at matson_r@cde.state.co.us.

Nonprogram Revenue

Adult Pricing

Paid Lunch Equity

The Paid Lunch Equity tool helps sponsors calculate paid lunch price increase requirements or non-federal source contributions under 7 CFR 210.14(e). To request the USDA PLE tool, contact Lyza Shaw at Shaw_L@cde.state.co.us or 303-854-4915.

Note: For SY 2026-27, sponsors must follow Paid Lunch Equity requirements only if they had a negative balance in the nonprofit school food service account as of June 30, 2025. The targeted lunch price is $4.16.

Sponsors with a positive or zero balance, or sponsors participating in Colorado’s Healthy School Meals for All program, are exempt from PLE requirements. View the USDA PLE guidance memo for more information.

Manage Account Balances and Costs

Excess Net Cash

State agencies are required to monitor net cash resources in a sponsor’s food service fund. Net cash resources may not exceed three months’ average expenditures in the food service fund, based on a nine-month operating year. Sponsors with excess net cash may need a spending plan. CDE currently requires a formal spending plan only if net cash is more than six months’ average expenditures, though sponsors over the three-month level are expected to have a local spending plan in place. The funds must be used for the support of the food service program. The spending plan could include improving the quality of meals or the purchase or replacement of food service equipment but is not limited to these items.

Federal Regulations - 7 CFR 210.19(a)(1) and 7 CFR 210.14(b), State Rule - 1 CCR 301-11-3.03.

Submit excess net cash plan

Capital equipment purchases and approval procedures

School Year 2026-27 Update

As of August 2026, CDE is returning to the federal excess net cash threshold of three months average expenditures. Sponsors that have excess net cash resources that exceed three-months' average expenditures will be required to submit a spending plan.

Calculate Excess Net Cash

Indirect Costs

Indirect costs are costs necessary to provide a service but not easily tied to one specific activity or program. Direct costs are costs that can be clearly identified with a specific activity or program. Review the USDA indirect cost policy.

Unpaid Meal Charges

Unpaid meal charges are amounts owed to the food service fund for meals already provided to students. These charges must be reported as accounts receivable in the food service fund and should be tracked as negative balances in the point of sale system.