operating a not-for-profit cacfp food program operation for daycare centers
DESCRIPTION
YES INC. OPERATING A NOT-FOR-PROFIT CACFP FOOD PROGRAM OPERATION FOR DAYCARE CENTERS. FINANCIAL MANAGEMENT. Not for Profit Food Service Operation for Day Care Centers. YES Inc. REQUIRES All Centers to Maintain a Separate Bank Account for the CACFP program beginning March , 2014 - PowerPoint PPT PresentationTRANSCRIPT
FINANCIAL MANAGEMENT
YES INC.OPERATING A NOT-FOR-PROFIT CACFP
FOOD PROGRAM OPERATIONFOR DAYCARE CENTERS
Not for Profit Food Service Operation for Day Care Centers
YES Inc. REQUIRES All Centers to Maintain a Separate Bank Account for the CACFP program beginning March , 2014
(No Co-Mingled Accounts Allowed)
CACFP is a separate not-for-profit business within your business
Please submit, Bank Statements, Payroll Reports, Cancelled Checks, etc. to support Claim.
You must show how you spend CACFP reimbursement in an allowable way.
Child and Adult Care Food Program
IS Federally Funded
Passed through YES Inc.
A Not-for-profit Food Program Operation.
Healthy meals to eligible participants
Optional Program
Heavily Administered Detailed program
requirements.
IS NOT “Free” money
Funding for personal expenses
To purchase soda/coffee for teachers, non-healthy and/or not enough food and snacks for participants
Entitlement Program
For the disorganized3
Nonprofit Food Service [7 CFR 226.6(e)(13)]
CACFP funds used solely for operation of food service for enrolled participants.
Cannot make a profit on Federal food program
No more than 3 month operating balance per program year
Documentation to support actual costs
Must have other source of income Costs Not Covered Temporary interruptions in
program payments Unallowable program costs
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MEASUREMENTS OF FINANCIAL VIABILITY
1. Accounting System▪ Does your agency have one?▪ If so is it in compliance to GAAP!Generally Accepted Accounting Principles
(GAAP)
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Accounting System Cash/Accrual/Modified Accrual
Cash System: Recognizes revenues and costs when cash is received and bills are paid.
Accrual System: Recognizes revenues and costs when costs are incurred and uses a payable and receivable system.
Modified Accrual System: Certain expenses are reported on an accrual basis.
Compliance with Generally Accepted Accounting Principles (GAAP) Rules for the accounting of costs and revenues Resource: http://www.fasab.gov/accepted.html or Ask your staff
Accountant Financial Reports
General Ledger / Check Register Profit/Loss Statement Balance Sheet
Co-mingled CACFP funds with Agency funds Method of separation (ie. independent account codes) Approved allocation plan for shared costs 6
Accounting Systems
Acceptable Credit card Checking
account Charge Account
at local store Invoice or COD
Food delivery vendor
Unacceptable Cash Purchases
(without proper receipts or invoices) Cash Purchases must have paper trail! Including cash-back
Food Stamps
* Information per GAAP 7
Allowable Operational Costs
Operational Kitchen
Meals▪ Preparatio
n▪ Delivery▪ Cleaning
Menus Purchasing
/ Vended Meals 8
Frequent Allowable CACFP Costs
(lists are not all inclusive)Allowable
Food (consumable) Kitchen Supplies/Nonfood Contract / Vended Meals Food Program Personnel
Operational e.g. Grocery shopping Equipment Purchase/Rental
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Food Costs
Costs in purchasing ingredients for menu items (Food Supplies) AND/OR the cost of purchasing itemized CACFP meals from an outside vendor (Contracted Service) that are served to the participants
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Food Consumable food products used to
create menu items served to program participants.
Costs can include delivery costs.
Report on the Food Supplies/Food Costs line On the Operating Form.
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Food Vendors Outside food service, not related to
agency.
Contract approved with YES/DECAL
Provide all CACFP components.
Report as Food/Contracted Services on CACFP Operating Cost Form.
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Contracted/Vended Meals
Costs of purchased, prepared meals are contracted service costs
Contract must be signed prior to beginning date (contracted service)
The vendor should keep production records(a record of quantity of food prepared) 13
Frequent Unallowable CACFP Costs(lists are not all inclusive)
Unallowable Bad Debts, Fines, Penalties Non food program food costs
Coffee, non-CACFP personnel meals (i.e. car payment,mortgage,maintenance, non-employee/family member)
Entertainment Toys, Cribs, Roof,
Purchase of food for personal use Money received must be
kept in food program account. Must have strict internal policy.
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Allowable Operational Food Service Labor
Menu planningFood purchasingCookingServing the foodCleaning-up after the meal
Meal Attendance15
Food Service Labor
All wages salaries Employee benefits, and the share of the employee taxes paid by the center
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How would YES Inc know what I spent my CACFP reimbursement
on? Review of Food Program Receipts/Invoices
Food Service Labor Time Sheets/and Time Distribution Reports
Payroll Statements
Balance Sheet or Bank Statements
On-Site Financial Reviews
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Operating Cost Form
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Remember!The CACFP funds are replacing
funds you are now spending
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CACFP Reimbursement
CACFP Reimbursement is based upon: Number of meals your Center serve
to the children in your care Eligibility of the participants There MUST be Food Services
Expense to Account for the Food Reimbursement Need.
MUST BE ALLOWABLE and CREDITABLE
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Nonprofit Food Service Financial
Costs should equal expenditures charged to food service program
Amounts must be supported by actual documentation – NO ESTIMATES
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Other Source of Income
CACFP is part of your overall organization.
Funds received to run organization must also be available to fund CACFP costs not covered by reimbursement.
Food Stamps is not another source of income for the center. 23
Best use of your CACFP Reimbursement
Plan, budget, and organize the funds available will help you to maximize your CACFP reimbursement.
No planning, using funds on non-program needs, no accountability of funds spent will result in repayment of funds, loss of funding and/or participation
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CACFP Financial Reviews SA Reviews (continued)
Any non-food program/unallowable cost found to be paid with CACFP funds will be disallowed. ▪ May result in repayment to YES/DECAL▪ CACFP funds exceed CACFP costs ▪ MUST BE ORGANIZED ▪ Be able to show and explain your organizations
system USDA Reviews
Monitoring SA as part of Management Evaluation YES Inc. will work with Child Care Centers on
Corrective Action (if needed)25
Let’s Summarize…
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Which are allowable food costs?
Milk Beer & Liquor Personal
Groceries Spices Bread
Crab meat Soda Pop Rabbit Food Teacher Meals Refrigerator
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Which are allowable nonfood/kitchen supplies?
Dishes Milk Cups Arts/Crafts
Supplies
Toilet paper Cooking utensils Dishwashing
detergent Paper towels used
in the classrooms
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Need to be separated from food
supplies on receipts.
What are some “Other” allowable CACFP expenses?
Food Service labor Operational Exp.
Admin. Labor Only CACFP %
Vended Meals Contracted Service
Kitchen Equipment Gas for Vehicles
Only CACFP % Maintenance/
Repairs Only CACFP %
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CACFP funds should always be spent on food and kitchen supplies FIRST
What items should you retain to support your CACFP costs?
Receipts Invoices Payroll
(timesheets, paystubs, etc.)
Checkbook/check register
General Ledger
CACFP Claim documentation
Bank Statements A shoebox or
garbage bag The number to
your accountant
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Retained for 4 years (3 yrs plus the current)
Resources
Financial Management: Guidance Memo 11
State agency Financial Management policy Child and Adult Care sites (Sponsors & Independent)▪ Instructions Completion of NPFS Report(s)▪ Allowable/Unallowable costs▪ Fiscal Action Procedures
FNS Instruction 796-2 (rev. 3) Abbreviated version Available Electronically – User Friendly http://dpi.wi.gov/fns/centermemos.html (under
Guidance memo 11)
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THANK YOU
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Please contact YES Inc
2321 Main StreetTucker GA 30084
770-938-3188
For any questions !
FINANCIAL MANAGEMENT
TRAINING FFY2014
Day Care Centers
CACFP Training - 2014