Updated Grain Requirements Guidance Memo

The U.S. Department of Agriculture (USDA) released a memo with updated guidance on the CACFP grain requirements based on the final rule Child Nutrition Programs: Meal Patterns Consistent with the 2020–2025 Dietary Guidelines for Americans. This memo supersedes CACFP 09-2018: Grain Requirements in the Child and Adult Care Food Program; Questions and Answers. To learn more, please review CACFP 05-2025: Grain Requirements in the Child and Adult Care Food Program; Questions and Answers.

Fresh Fruit and Vegetable Program (FFVP) Webinar

Visit the Minnesota Department of Education (MDE) Calendar to register for the upcoming webinar, FFVP Overview and Application Process on March 6 at 2 p.m. This session is designed for all current and prospective sponsors and will provide valuable insights into the program, best practices and resources.

Fund 02 Excess Net Cash Resource Limitation

In recent years, the State of Minnesota temporarily increased the net cash resource limitation in Fund 02 from three months of operating expenses to six months, due to the increased funds available to school food authorities (SFAs) during the pandemic. The six-month limitation will continue for School Year 2025 (SY25) but will revert to three months of operating expenses in SY26.

Excess net cash resources are calculated using the restricted fund balance in the Nonprofit School Food Service Account (NSFSA) and a calculated monthly average operating expense based on the published limitation. If the restricted fund balance exceeds the calculated average operating expenses for that year, the amount above the restricted balance is considered excess funds, as defined in 7 CFR 210.14(b) and 210.19(a)(1).

The State Agency reviews year-end Uniform Financial Accounting and Reporting Standards (UFARS) data in January for the previous school year to determine compliance:

• January 2025: SY23–24 data and 6-month average operating expenses

• January 2026: SY24–25 data and 6-month average operating expenses

• January 2027: SY25–26 data and 3-month average operating expenses

If an SFA has excess net cash resources, a notice will be sent to the SFA's Business Manager and Food Service Director. They will be required to develop and submit a plan to the State Agency detailing how they will spend the excess funds in compliance with procurement regulations, while improving the SNP.

The federal regulation seeks to balance financial stability and sustainability for SFAs, ensuring that funds are used for their intended purpose—providing healthy meals to children.

Refer to the Net Cash Resource Limitation in the Nonprofit School Foodservice Fund resource located on the Non-profit Food Service Account webpage on the MDE website for more information.