Nutrition Services Financial Procedures Handbook Revised July 2011

1. Division of Finance Nutrition Services Financial Procedures Handbook Revised July 2011

2. Nutrition Services Financial Procedures HandbookTable of Contents • Contact Information • Profit and Loss Statement • Accuracy and Accounting Issues • Deposit Requirements • Deposit Preparation • Deposit Supplies • Cash Handling • Change Fund • Change Orders

3. Contact Information • We’re here to help: • Krista Swanson / Acct. Trainer - Ext. 28922 • Donna Garcia / Acct. Trainer - Ext. 28929 • Louise Tipton / Accountant - Ext. 28925 • Theresa Larson / Accountant - Ext. 28927

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5. Profit and Loss Statement • Nutrition Services is a self-supporting operation. • It is important to review your profit and loss statement monthly. • Share this statement with your employees. • Every manager is expected to break even – at a minimum.

6. Profit and Loss Statement cont… • If your net income is negative, try to think of changes that can be made to increase profits. Two areas you have control of are: • Labor • Waste

7. REVENUES: All revenue is tracked in this section. “Sale of Food” reflects daily deposits from your POS. EXPENSES: All your site expenses are tracked in this section. You have no control over the salaries and benefits. However, you do have control over certain expenses reflected on this statement. Wasted manpower hours, supplies and food are areas you may want to monitor closely. GROSS PROFIT/LOSS: This is a subtotal of your schools revenue less expenses. 7

8. NET INCOME (or loss):This is your bottom line. Review these reports monthly to know where your kitchen stands financially. Remember, it would not be unusual for this balance to be negative in July and August because your site is not generating revenue during these months; however, you are generating expenses. PRORATED REBATES: You have no control over these items. Your school will be credited according to a calculation based on district revenues divided by your school’s revenues. PRORATED EXPENSES: These are overhead expenses. You have no control over these items. They are expenses every business must incur. Overhead costs are costs not generated directly by your site, but help support your operation.

9. Accuracy and Accounting Issues • The Nutrition Services bank account is reconciled to the penny by the Accounting Department. • Deposit corrections affect the site’s bottom line. Differences will be charged to your profit and loss statement (P&L). • Corrections will be tracked for evaluation purposes by Nutrition Services.

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11. Deposit Requirements • Each site must make daily deposits even if the school does not receive a daily armored car pick-up. • The total collected for the day should be listed on the day end deposit slip and the deposit ticket even if it does not match your point of sale (POS) system. • Two people must each count the deposit independently - both people must come to the same total. If not, count the money again.

12. Deposit Requirements cont… • Prepare day end deposit slip. • DO NOT pre-sign this form. • Prepare deposit ticket. • Each site should have a printing calculator. • Do not split up the deposit into separate bags. Only one deposit and one deposit ticket per bag. • Do not use paper clips or staples in your deposit. Rubber bands are okay.

13. Deposit Preparation • Count cash and coin. • Separate bills and coin into groups by denomination for easier counting. • Run two calculator tapes to total amount of currency for verification purposes.

14. Deposit Preparation cont… • Count checks. • Run two calculator tapes to total the stack of checks. Stamp both of the calculator tapes with your endorsement stamp (bank copy and file copy). • Stamp the back of each check with your endorsement stamp. • Stack the checks and secure the stack with a rubber band. • Place one calculator tape on top of the stack of checks under the rubber band (this is the bank’s copy).

15. Deposit Preparation cont… • Prepare day end deposit slip. • Requires two people count the money independently. • Must be signed by each person counting the money. • DO NOT pre-sign day end deposit slips. They should be signed only after the money is counted

16. Bills Coin Two counts – two signatures 16

17. Deposit Preparation cont… • Prepare deposit ticket. • Total coin • Total cash • Total currency (cash and coin) • Total checks amount • Deposit total (cash/coin/checks) • Write the total of the deposit in BOTH total boxes. • Run a calculator tape on the deposit ticket to verify total. • If a deposit ticket is spoiled or voided, mark it “void” and send it to Alea at Nutrition Services.

18. 1 20.00 1.75 21.75 2 238.04 1 2 3 259.79 3 259.79 currency coin Total Cash Total Checks Total Deposit 18

19. Deposit Preparation cont… • Fill out a pre-numbered plastic deposit bag: • Date • Name of school • Destination (US Bank) • Said to contain (total deposit amount) • Your initials • Keep tear-off receipt with deposit info • Place entire deposit (all cash/coin/checks, stamped check calculator tape and white deposit ticket) into deposit bag and seal the bag. • Take your deposits to the main office.

20. This is a deposit bag(may use any security seal bags) Tear off label (keep for your records) Bag number Destination: US Bank US Bank Tollgate Name of school Cafeteria Today’s date 08-13-07 Your initials KDS Amount of deposit $ 259.79

21. Deposit Preparation cont… • Fill out the Dunbar Red Book in the main office and have it initialed by office staff. • Stick the Dunbar Red Book barcode label on the security seal plastic bag.

22. Place sticker on plastic bag. 1313870 Deposit Ticket # 259.79 22

23. Deposit Preparation cont… • Watch to see deposit is locked in the safe. • Send the following to Nutrition Services: • White copy of day end deposit slip • Yellow copy of bank deposit ticket • One of the calculator tapes of the checks • The calculator tape of your deposit ticket • Keep for your records • Yellow day end deposit slip (copy if not using two part form) • Pink copy of bank deposit ticket • The tear-off receipt from the plastic deposit bag • POS report

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25. Deposit Supplies • Keep these items in stock at all times. • Endorsement stamp for your school site. • Ink for your endorsement stamp. • Deposit bags (we have three kinds of bank bags: small, large and large coin). • Deposit books. • These supplies are custom for your cafeteria. You cannot “borrow” any supplies from the office or other cafeterias.

26. Deposit Supplies cont… • Complete the online deposit supplies request form located on the Accounting Department’s Web site at: http://www.apsnet/acctg/Forms/Deposit_Supplies_Request_Form.htm • This will generate an e-mail to Accounting and your order will be processed. • A thank you e-mail will be sent to you when you place your order.

27. Select Finance, Accounting 43

28. Click on Deposit Supplies Request Form 28 28

29. Complete all fields Select desired supplies. Click submit form. 29

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31. Cash Handling • Locking safe • Every site should have a safe that locks—keep it locked. • Every safe should be bolted to the ground or wall. • If you do not have a safe, contact Mona Martinez-Brosh.

32. Cash Handling cont… • Follow proper cash handling procedures. • Keep all money and change fund in the locked safe. • Give completed deposit to main office cash handler. • Fill out the Dunbar Redbook and label deposit with barcode sticker. • Both the cafeteria personnel and cash handler should initial the Dunbar Red Book. • Once the person in the office takes hold of the cash, they are responsible for the safe keeping of the deposit. • Watch to see that the deposit bag is locked in the office safe.

33. Cash Handling cont… • Use your safe to secure your cash between breakfast and lunch. • If there is no one in the office to give the deposit to Dunbar when they arrive, the driver will not wait. They have a limited amount of time to spend at each site, therefore that deposit will have to wait until the next scheduled pick-up.

34. Cash Handling cont… • Risk Management may not cover losses if these cash handling procedures are not followed. • General rule for the losses covered by Risk Management--there must be signs of forcible entry.

35. Cash Handling cont… • Counterfeit Bills • Accept all bills except for obvious fraudulent bills. • Include them in the bank deposit. • Allow the bank to make the decision—they are the experts! • No effect on your P&L—the district will absorb the cost.

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37. Change Fund • What is a change fund? • A change fund is the amount of cash you keep to make change for students. • Every cafeteria has an approved amount. • If you have questions about how much your site should have, please contact Mona Martinez-Brosh. • Keep the same amount in your change fund at ALL times—subject to review by the Internal Audit Department.

38. Change Fund cont… • Increases or decreases in the amount of your change fund need Mona Martinez-Brosh’s approval. • Any modifications to your change funds will be handled by the Accounting Department. • Cash to increase you change fund will be sent to your site.

39. Change Orders • What is a change order? • Change orders ARE NOT to replenish or increase your change fund. • It is to make different denominations of change from the money you already have. • For example, to request change for a $20.00 bill, you could ask for a roll of quarters ($10) and two rolls of dimes ($10).

40. Change Orders cont… • Change must be ordered through the Accounting Department with a change order form.Do not take money to a local bank branch for change. For safety reasons, money is picked up and delivered by an armored car.

41. Change Orders cont… 20.00 • Two steps for a change order: • First step - prepare a separate deposit for each change order. • The cash amount of the deposit should be the amount of change you need. • Write “CHANGE ORDER” on deposit ticket. • Process the deposit as usual. Change Order 20.00 20.00

42. Change Orders cont… • Second step – complete the online change order request form located on the Accounting Department’s Web site at: http://www.apsnet/acctg/Forms/Change_Order_Request_Form.htm • A thank you e-mail will be sent to you when you place your order.

43. Select Finance, Accounting 43

44. Click on Forms 44

45. Click on Change Order Request Form 28

46. Complete all fields Select type of change desired from drop-down menus Click request change 46

47. An e-mail will be sent to Accounting and your order will be processed for delivery 47

48. Change Orders cont… • Change must be requested in these denominations: $ 10 QUARTERS $ 5 DIMES $ 2 NICKELS .50 PENNIES

49. Change Orders cont… • You will receive the change order from Dunbar within 2 or 3 business days on your regular pick-up day.