Tenn. Code Ann. § 49-6-2305: Reserve fund

(a) Each LEA that operates a child nutrition program may maintain a three-month reserve fund for operating expenses. The revenue for the reserve fund shall come from the unexpended balance of the program.

(b) The LEA shall project the reserve fund for the child nutrition program at its annual budgetary planning meeting. LEAs can recover indirect costs only from the reserve fund that exceeds three (3) months' operating expenses.