CASH MANAGEMENT
Bob Deegan, Deputy Director, Special Nutrition Programs
USDA Food and Nutrition Service, Northeast Regional Office
Why talking about Cash Management? $418,876 stolen from Concord NH 1999-
2006 by District’s bookkeeper $335,000 from East Lyme CT by FSMC’s
FSD 2004-2010 Lots of smaller thefts, but all have lack of
basic management controls in common Keeps your food service operation from
making as much money and from increased financial independence with the District
Who’s food service operation has had a theft?
Should be part of your Business Plan
Cash management is one piece of a well run and profitable business operation along with: Inventory management Production records Portion control/plate
waste Effective procurement Marketing Etc.
Cash Management at the POS
If you don’t have a computerized operation – lobby your District to get one
Minimize time & confusion at the POS by: Use 25 cent increments in pricing to the greatest
extent Encourage families to pay online or add money
other time than at lunch (can Main Office collect money?)Use pre-numbered receipts Endorse checks right away
Train cashiers, especially on what constitutes a reimbursable meal, and spot check them Look for “stuff” by the POS (bobby pins, gum, etc.)
Cash Management at the POS cont’d
Count-out cash drawers at the end of shifts Protects cashiers from future suspicion Set a tolerance limit for shortages/overages
One drawer per person Document any cash transfers between
drawers Keep good records Balance system totals by reconciling daily
cash register readings to daily deposits
Now what do I do with the $
Establish written procedures for how cash will be reconciled and deposits made
Limit/control access to cash As few staff as possible should handle cash Use two-person control to segregate duties
between person receiving cash and person maintaining the accounting records
Need increased oversight if staffing levels prevent two-person control
Now what do I do with the $ cont’d
Get a secure storage container or use the school’s safe
Don’t keep cash in unlocked desk drawers, file cabinets, etc.
Make regular deposits Always reconcile deposits promptly Keep good records Use bonded couriers for bank deposits if
not making them yourself
Communications - The most important part of Cash
Management Talk to people and learn from their
advice/mistakes School business officers
Good people to reconcile monthly bank statements with
Fellow food service managers, directors SNA members good starting point
Others in retail businesses with high cash flow Universities and colleges tend to have very
comprehensive Cash Management procedures
Cash Management
It’s not just $ that’s walking out the door
Cash Management
Use good inventory management and conduct periodic inventories of highly pilferable foods and equipment
Mark equipment Use production records to detect
changes Consider installing cameras at key
locations Make sure they are aimed to show faces
Only use clear plastic trash bags
My Plate
Questions?