Financial records for cacfp
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Financial Records for CACFP. Nonprofit Food Service Operation, p.71. CACFP is like a separate nonprofit business within your business Must show you spend reimbursement in an allowable way. How Do You Demonstrate You Are Running a Nonprofit Food Service Operation?.

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Financial records for cacfp

Financial Records for CACFP


Nonprofit food service operation p 71

Nonprofit Food Service Operation, p.71

  • CACFP is like a separate nonprofit business within your business

  • Must show you spend reimbursement in an allowable way


How do you demonstrate you are running a nonprofit food service operation

How Do You Demonstrate You Are Running a Nonprofit Food Service Operation?

  • By using the money in an appropriate manner

  • By tracking the money you receive and how it was used

p. 71


Allowable costs

Allowable Costs

Costs you can claim as legitimate expenses in CACFP

p. 72


Allowable costs1

Allowable Costs

  • Amount paid is based upon:

    • Number of meals you serve

    • Eligibility of the participants

  • The funds you receive will not cover all of yourallowable costs

p. 72


Remember

Remember!

The CACFP funds are replacing funds you are now spending

p. 71


Allowable costs p 72

Allowable Costs, p. 72

  • Operating costs

    • Costs for the preparation and service of meals

    • Food – 50% minimum

  • Administrative costs-

    • 15% limit


Food costs

Food Costs

  • Costs in purchasing ingredients for foods that are served to the participants

  • Food costs include sales taxes and deliveryfees

p. 72


Food costs1

Food Costs

  • Cost of food used to prepare meals for staff performing labor necessary to the food service operation

    • You may not claim staff meals

    • You may only claim the cost of their meals as an expense

      • Must be the same meal served the participants

p. 72


Purchased meals p 85

Purchased Meals, p. 85

  • Costs of purchased,prepared meals are food costs

  • Contract must be signed prior to beginning date

  • The vendor must keep production records(a record of quantityof food prepared)


Which are allowable food costs

Milk

Cigarettes

Personal Groceries

Spices

Bread

Crab meat

Soda Pop

Rabbit Food

Teacher Meals

Which are allowable food costs?

You may never claim a teacher’s meal; you may report the cost of their meal

p. 73


Records needed to document food costs

Records Needed to document Food Costs

  • Invoices or

  • Receipts, or

  • Itemized bills

p. 72


Invoice form p 77

Invoice Form, p. 77

  • Good to use with receipts that are:

    • Not itemized, or

    • Donated items used in the food program


Financial records for cacfp

Bread Store

Loaf Bread

16 @ $1

4 bx. @ $2

Cookies

$26.40

108

3/29/00

Sherry Smith


Donated milk

Donated Milk

MUST have a signed and dated receipt from the individual donating the milk!!!!

MUST be documented on an invoice form!

p. 77


Financial records for cacfp

Ron Davis

Milk

2 gal.

Ron Davis

Sherry Smith

3/29/00


Costs of nonfood supplies p 73

Costs of Nonfood Supplies, p.73

  • Nonfood items used in preparing and serving the meal…


Costs of nonfood supplies

Costs of Nonfood Supplies

  • Paper goods

    • Napkins

    • plastic forks and spoons

  • Cleaning supplies useddirectly for the food service operation

    • Chlorine bleach

    • Dish detergent

p. 73


Costs of nonfood supplies1

Costs of Nonfood Supplies

  • Small kitchen equipment (cost less than $300)

    • Serving utensils

    • Eating utensils

    • Trash cans for the kitchen

    • Pots and pans

    • Small microwave oven

p. 73


Records to document costs of nonfood supplies

Records to documentCosts of Nonfood Supplies

  • Invoices

  • Receipts, or

  • Itemized bills

p. 72


Which are allowable nonfood supplies

Dishes

Milk

Stove

Cups

Arts/Crafts Supplies

Toilet paper

Cooking utensils

Dishwashing detergent

Paper towels used in the classrooms

Which are allowable nonfood supplies?

p. 73


Food service labor

Food Service Labor

All wages, salaries, employee benefits, and the share of the taxes paid by the sponsor.

p. 73


Food service labor1

Food Service Labor

  • Menu planning

  • Food purchasing

  • Cooking

  • Serving the food

  • Cleaning-up after the meal

p. 73


Food service labor is also

Food Service Labor is also…

  • Time spent completing required records

    • Attendance records

    • Records we will cover later

      • Production records

      • Menu form

  • Supervision of day-to-day food service operations

p. 73


Food service labor2

Food Service Labor

  • Records to document food service labor include:

    • time sheets and

    • payroll records

You must be able to document time spent. You cannot just allocate an amount of money.

p. 73


Time sheet

Time Sheet

  • Time sheets must show the start and end time of each activity and what is done.

p. 78


Time sheet page 78

Time Sheet, page 78


Financial records for cacfp

Payroll Records


Costs of some purchased services

Costs of Some Purchased Services

  • Purchased services are services you purchase from someone else

  • They include…

p. 74


Maintenance of kitchen

Maintenance of Kitchen

  • Plumbing directly related to cooking and clean up

  • Repair of kitchenequipment

p. 74


Allocated purchased services

Allocated Purchased Services

  • Allocated costs include:

    • Pest control

    • Trash pick-up

    • Utilities

  • Must be able to determine how much is for the center and how much is for the CACFP (Allocation Plans, p.161-163)

p. 74


Direct purchased services

Direct Purchased Services

  • Costs for which the entire costs belong to the food program

    • Kitchen equipment repair

    • Special membership fees for group purchasing

    • Health Department Permits

p. 74


Records to document costs of purchased services

Records to documentCosts of Purchased Services

  • Invoices,

  • Itemized Receipts, and/or

  • Allocation studies


Other service expenditures

Other Service Expenditures

  • Large Kitchen Equipment

    • purchases over $300

    • must get prior approval from SDE

CACFP does not have extra money for you to use to buy equipment!

p. 74


Operating costs summary

Operating Costs - Summary

  • Food costs (50%)

  • Costs of nonfood supplies

  • Food service labor

  • Costs of purchased services

  • Other service expenditures – Equipment purchaseover $300

p. 72-74


Administrative costs p 75

Administrative Costs, p.75

  • Most centers do not have any money to put in this category

  • No more than 15% of reimbursement may bespent on Administrativecosts

  • Administrative costs

    • Labor

    • Other


Administrative labor

Administrative Labor:

  • Preparing the monthly claim

  • Completing F/RP Applications

  • Maintaining the Master Roster

  • Monitoring (required for sponsors with 2 or more centers)


Administrative labor1

Administrative Labor

  • Must have accurate time records.

  • Records must show where one job endsand the CACFP administrativeduties begin.


Other administrative costs include

Other Administrative Costs include:

  • Checks for CACFP Account

  • CACFP Checking Account Fee


Allowable costs2

Allowable Costs

  • Operating Costs

    • Costs for the preparation and service of meals

    • Food – 50% minimum

  • Administrative Costs-

    • 15% limit

  • Just because it is allowable, does not mean you will have food program money to pay for it!


Un allowable expenditures

Un-Allowable Expenditures

  • Interest expense

  • Return check fees

  • Loans for any reason from the CACFP account

  • Cola drinks

  • Food and beverage consumed by staff (i.e., coffee)

  • Food served to participants at times other than meal times

  • Equipment purchases, over $300, without prior approval

p. 76


Documenting expenditures p 72

Documenting Expenditures, p. 72

  • Receipts

  • Payment documentation,such as a canceled check

  • A tracking or bookkeeping system


Receipts

Receipts:

  • Invoices from a food distributor or milk vendor

  • Grocery Store Receipts

    • Itemized (identify what is purchased)

    • Only allowable items on the receipt; NO personal expenditures

p. 72


A separate checking account is required for most sponsors

A separate checking account is required for most sponsors!

p. 72 & State Policy 01-1


Payment documentation

Payment Documentation

  • Use checks (debit card) for all purchases

  • Separate food program from personal and center purchases

  • Get rid of petty cash for food program purchases

p. 72


Tracking system

Tracking System:

  • Shows money received and money spent

  • Formal bookkeeping system

  • Separate CACFP from the Center income and expenditures

  • NOT a checking account ledger

p. 80


Tracking systems

Tracking Systems:

  • Bookkeeping systems such as:

    • Computer programs:

      • QuickBooks

      • Peachtree accounting

    • Manual systems:

      • Monthly General Journal*

      • Ledgers

p. 80


Budget

Budget

  • Will do at on-site visit

  • Allocate funds in as few allowable categories as possible

  • Check your food expenditures and budget all of those costs in your budget

  • Budget in other categories based upon “ease” of documentation


Remember1

Remember!

  • You must have receipts

    • Keep personal expenses separated from the day care and CACFP

  • Daily time sheets if claiming labor

  • Separate checking account

  • Tracking system


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