Financial management
Download
1 / 60

- PowerPoint PPT Presentation


  • 196 Views
  • Updated On :

FINANCIAL MANAGEMENT School Nutrition Program Administrative Review Training Embassy Suites September 9 - 11, 2009 Income Cash Payments Two sources of cash payments: 1. Students 2. Adults Full Pay Student Payment Local Board Approval

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about '' - paul2


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Financial management l.jpg

FINANCIALMANAGEMENT

School Nutrition Program

Administrative Review Training

Embassy Suites

September 9 - 11, 2009



Cash payments l.jpg
Cash Payments

Two sources of cash payments:

1. Students

2. Adults


Full pay student payment l.jpg
Full Pay Student Payment

  • Local Board Approval

  • Highest Price Reported on System Application

  • Recover Average Plate Cost

    or

    Plate Cost

    - Current Commodity Value

    - Current Section 4 Reimbursement Rate

    = Minimum Full Price Student Charge


Reduced student payments l.jpg
Reduced Student Payments

  • Price cannot exceed Free Reimbursement less Reduced Reimbursement.

    BreakfastSNBLunch

    $1.46 $1.48 $2.68

    - 1.16- 1.18- 2.28

    $ .30 $ .30 $ .40


Second meal sold to student l.jpg
Second Meal Sold to Student

$1.75

+ .25

+ .22

$2.22

(round for ease in making change)

  • Paid Student Charge

    +

  • Section 4 Rate

    +

  • USDA Commodity Rate

    (round up)

    =

    Charge for 2nd meal sold to students


Adult payments l.jpg
Adult Payments

$1.75

+ .25

+ .22

$2.22

(round for ease in making change)

Highest Paid Student Charge

+

Section 4 Rate

+

USDA Commodity Rate (round up)

=

Charge for meal sold to Adult


Meals served no payment l.jpg
Meals Served – No Payment

  • Charged Meals

  • Free Adult Meals


Charged meals l.jpg
Charged Meals

Board approved Charge Policy:

  • Implemented as approved

  • Reconciliation of charges

  • “NO CHARGES ALLOWED” is acceptable.

  • “Bad debts, including losses arising from uncollectible accounts are unallowable.”

    (2 CFR 225 Appendix B)


Free adult meals l.jpg
Free Adult Meals

An adult may eat free if:

  • Directly involved in the operation and administration of the SNP.

  • Paid from SNP funds.

    or

  • Received written permission from the State SNP Director.


A la carte sales l.jpg
A la Carte Sales

  • 2 ½ - 3 x cost of product (rule of thumb)

  • Avoid competition with SNP

  • May be costing you money

    1. Labor costs

    2. Loss of Reimbursement Revenue

    3. Loss of Commodity Entitlement


Income cont d l.jpg
Income (cont’d)

Federal Reimbursement

  • Major Source

  • Rates Issued Annually

  • July 1 – June 30


Lunch reimbursement rates l.jpg
Lunch Reimbursement Rates

Meal Type Rates ($) Comment

Paid Lunches 0.25 (Free + Reduced) <60%

Paid Lunches 0.27 (Free + Reduced) >=60%

Free Lunches 2.68 (Free + Reduced) <60%

Free Lunches 2.70 (Free + Reduced) >=60%

Reduced Lunches 2.28 (Free + Reduced) <60%

Reduced Lunches 2.30 (Free + Reduced) >=60%


Breakfast reimbursement rates l.jpg
Breakfast Reimbursement Rates

Paid Breakfasts 0.26

Free Breakfasts 1.46

Reduced Breakfasts 1.16

Free Severe Need Breakfasts 1.74

Reduced Severe Need Breakfasts 1.44


Severe need breakfast l.jpg
Severe Need Breakfast

  • Individual School Statistics

  • April – 2 years prior (April 2008)

  • 40% or greater Free + Reduced Participation at LUNCH

  • Caution – Consolidated claim may have both regular and SNB

  • Check annually.


Income cont d16 l.jpg
Income (cont’d)

Interest

  • Any interest earned on SNP funds must be credited to the SNP account and used only for program purposes.

  • This includes SNP funds invested for you by Trustee, etc.


Income cont d17 l.jpg
Income (cont’d)

Catering

  • Internal School Uniform Accounting Policy Manual (Section 8, Page 2)

  • Formal Contract with itemized cost

  • No SFA money or USDA Commodity

  • Documentation that payment received covers all costs.


Catering contract l.jpg
Catering Contract

  • Include $ amount to cover all costs

  • Costs are to itemized

    Food

    Non-Food Supplies

    Labor

    Fringe Benefits

    Utilities

    Other

    DOCUMENT, DOCUMENT, DOCUMENT!


Income cont d19 l.jpg
Income (cont’d)

State Matching

  • Internal School Uniform Accounting Policy Manual (Section 8, Page 4)

  • Used solely in the SNP

  • 10% must be applied to:

    1. Employment of certified (endorsed) SNP Supervisor. (100% can be used for this)

    2. Employment of cafeteria managers or assistant managers accredited by SNA or working toward accreditation

    3. Professional training programs for non-accredited personnel.


Internal school uniform accounting policy manual l.jpg
Internal School Uniform Accounting Policy Manual

http://www.state.tn.us/education/fa/ed331936.htm


Cash payment refunds l.jpg
Cash Payment Refunds

  • Internal School Uniform Accounting Policy Manual (Section 5, page 20)

  • Refunds in excess of $2.00 should be disbursed only by check.

  • Refunds are reductions of revenue, rather than new expenditures.


Documentation for cre l.jpg
Documentation for CRE

  • Cash Receipts Journal

  • Deposit Slips

  • Bank Statements

    and/or

    Trustee’s Reports

  • Daily Record of Meals Served and Program Income

  • Reimbursement Claims



Expenditures24 l.jpg
Expenditures

Other – Supplies, Maintenance, Equipment, Allocated Costs

Figure Expenditures as % of Revenue.


Allocated costs l.jpg
Allocated Costs

  • Costs shared with other programs on a percentage basis

  • How are the cost allocation percentages determined?

  • Document method of allocation

    Examples: Audit, copier, bookkeeper salary, etc.


Documentation for cre26 l.jpg
Documentation for CRE

  • Cash Disbursements Journal

  • Invoices

  • Statements

  • Cancelled Checks/Warrants

  • Check Registers

  • Payroll Ledgers

  • General Journals

  • Month-end/Year-end Report


Operating or fund balance l.jpg
Operating or Fund Balance

  • Verify with Audit annually

  • Verify with State SNP Website monthly

  • 7 CFR 210.14

    The SFA shall limit its net cash resources to an amount that does not exceed 3 months average expenditures for its non-profit school food service.


Indirect costs l.jpg
Indirect Costs

  • A cost rate established by TN Dept. of Education

  • The Non-Restricted rate is to be used by all non-restrictive federal programs including Food Service.

  • Cannot be directly assessed (example: utilities)


Indirect costs cont d l.jpg
Indirect Costs (cont’d)

  • Cannot be recovered by LEA unless SNP has an excess balance

  • Recovered amount limited to excess

  • All activities which benefit from the governmental unit’s indirect cost will receive an appropriate allocation of indirect costs. (2CFR 225 Appendix A)


Indirect costs cont d30 l.jpg
Indirect Costs (cont’d)

  • Not charged on Food and Equipment

  • No cost may be assigned to a Federal Grant as a direct cost if any similar cost incurred for the same purpose has been allocated to the Federal Grant as an indirect cost.


Excess balance l.jpg
Excess Balance

  • Balance > 3 months average expense

  • State Agency tracks monthly

    1. http://snp.state.tn.us

    2. Login

    3. Set School Year

    4. Claim/View Reports

    5. Excess Balance


Federal regulation regarding excess balance l.jpg
Federal Regulation Regarding Excess Balance

7 CFR 210.19

In the event that net cash resources exceed 3 months’ average expenditures…the State agency may require:


Excess balance plan l.jpg
Excess Balance Plan

  • Reduce the price children are charged for meals

  • Improve Food Quality

  • Take other action designed to improve non-profit SNP

    (Examples: equipment purchases, additional in-services)



Allowable costs l.jpg
Allowable Costs

  • SNP Revenues are to be used only for the operation or improvement of SNP

  • “Income accruing to the SFA in any school, including interest earned on school food authority accounts, shall be used only for school food authority fund programs. Such income shall not be used to purchase land, to acquire or construct buildings.” (Internal School Uniform Accounting Policy Manual (Section 8, Page 2)



Cash control l.jpg
Cash Control?

How do you manage your daily cash?

  • Do you have written cashier instructions?

  • Is cash secure during entire day?

  • Do you accept checks for amount of purchase only or for pre-payments?

  • Do you have a trained back-up cashier?


Cash control cont d l.jpg
Cash Control (cont’d)

Change Account:

“A pre-determined amount of cash may be set aside as a “change account” for the purpose of making change in the cash collecting operation only. A petty cash account is not allowed in the school food authority fund. The change account shall be reconciled each daily. Only the exact predetermined amount of change shall be withheld from each day’s deposit. (NOTE: The change account cannot be used to balance overages and shortages in collection.)

Internal School Uniform Accounting Section 8,pg2


Cash control cont d39 l.jpg
Cash Control (cont’d)

“School money should NEVER be taken home by individuals for safekeeping or left at a school overnight unless it is stored in a school safe or vault.”

Internal School Uniform Accounting Section 4, pg 17.


Cash control cont d40 l.jpg
Cash Control (cont’d)

Counting Money

  • Desk or table clear of papers

  • Cashier counts money and records

  • Separate (AND INDEPENDENT) 2nd count required


Cash control cont d41 l.jpg
Cash Control (cont’d)

Cash Reconciliation

  • Comparison of actual cash to potential cash

  • May be electronic or manual

  • Difference between potential and actual is recorded

  • Signed by cashier

  • Countersigned by person doing 2nd count

  • Actual amount equals deposit amount


Cash control cont d42 l.jpg
Cash Control (cont’d)

Deposits

  • Daily, if possible. No later than 3 banking days.

  • Collections should be deposited in the form and amount as collected.

  • Itemized list of checks (manual or electronic)

  • All money collected must be deposited in the next deposit

  • Deposits completed in duplicate

  • Initialed by two people.


Documentation for cre43 l.jpg
Documentation for CRE

  • Cash Register Tapes

  • Rosters

  • Automated Transaction Files

  • Day End Totals

  • Lowest Source (covered in Meal Counting and Claiming)



Monthly reconciliation l.jpg
Monthly Reconciliation

Perform a monthly reconciliation of:

  • Bank Statements (check deposits against daily cash reconciliations)

  • Trustee’s Reports

  • Operating Balance on SNP books to State website

  • Bad Checks


Record retention l.jpg
Record Retention

School Nutrition Records must be retained for 3 years or until all applicable audit exceptions are resolved.


Documentation for cre47 l.jpg
Documentation for CRE

Additional Financial Records need for the CRE include:

  • Copy of most recent audit

  • Financial status per individual school

  • Charge Policy

  • Meal Pricing Chart

  • A la Carte Pricing Chart


Specific cre questions regarding income l.jpg
Specific CRE Questions Regarding Income

  • If the school has a charge policy, is it being properly implemented?

  • Are only eligible adults receiving free meals?

  • Are SNP funds used only for SNP expenditures?

  • If applicable, are indirect costs being appropriately covered?


Specific questions cont d l.jpg
Specific Questions (cont’d)

  • If applicable, are costs between the SNP and other programs allocated appropriately?

  • Is the operating balance as shown on the Claim for Reimbursement the same as the balance shown on the system’s books?

  • When was the most recent SNP audit? List any discrepancies not corrected.


Specific questions cont d50 l.jpg
Specific Questions (cont’d)

  • Are daily receipts verified by more than one person?

  • Is the adult meal price being sufficient to cover the cost of the meal?

  • Are all receipts deposited within three (3) banking days?

  • Is the cash balance reconciled with the bank statement/trustee report monthly?


Specific questions cont d51 l.jpg
Specific Questions (cont’d)

  • Is a separate account maintained for food service funds?

  • Has all interest earned on SNP funds been credited to the SNP account?

  • Does the SNP have a contract for all catered events?

  • Is there sufficient documentation that payment received covered all costs for catered events?


Web sites l.jpg
Web Sites

  • http://www.whitehouse/gov/omb

    (Office of Management and Budget)

    2 CFR Part 225

  • http://www.state.tn.us/education/fa/ed331936,htm

    (Internal School Uniform Accounting)

  • http://snp.state.tn.us

    (Regulatory Search – CFR)



Budget l.jpg
BUDGET

  • Set Goals

  • Establish a yardstick

  • Broken down by number of serving days

  • Know your “Break-Even” point


Accounting system l.jpg
ACCOUNTING SYSTEM

  • We are a business.

    1. Produce a product

    2. Provide a service

  • Accurate reports

  • Comparison of current data to previous months or years


Profit and loss statements l.jpg
PROFIT AND LOSS STATEMENTS

  • Broken down by cost center

  • Compare like situations

  • Shared with Managers and staff

  • Spot problem areas (high food costs)


Informed managers l.jpg
INFORMED MANAGERS

  • You won’t change if you don’t know you need to

  • Manager controls Financial Management at the school level – not the Supervisor


Informed managers cont d l.jpg
INFORMED MANAGERS (cont’d)

  • Manager controls Financial Management at the school level – not the Supervisor

  • Manager determines 80% of decisions

    1. How much food to order?

    2. How much food to prepare?

    3. What to do with leftovers?

    4. Do we need a substitute or not?


Slide59 l.jpg

  • “In accordance with Federal law and U. S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a compliant of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, DC 20250-9410 or call (800) 795-3272 or (202)720-6382 (TTY). “USDA is an equal opportunity provider and employer.”


Questions l.jpg
QUESTIONS? Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a compliant of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, DC 20250-9410 or call (800) 795-3272 or (202)720-6382 (TTY). “USDA is an equal opportunity provider and employer.”


ad