Financial Management for the CACFPSponsoring Organizations

VIABLE, CAPABLE & ACCOUNTABLE

Are you VCA?

Financial Viability

7 CFR § 226.6(b)(2)(vii)(A)• Have adequate financial resources to

– Operate the CACFP on a daily basis– Pay employees and suppliers, even during

temporary interruptions in CACFP payments– Pay fiscal claims

• Document financial viability through audits, financial statements, etc.

Administrative Capability

7 CFR § 226.6(b)(2)(vii)(B)

“Appropriate and effective management

practices must be in effect to ensure that the

Program operates in accordance with [the

regulations].”

Administrative Capability

7 CFR § 226.6(b)(2)(vii)(B)

• Adequate staff for daily operations

• Adequate staff for monitoring

• Policies and procedures in place to assign

responsibilities and ensure civil rights

compliance

Accountability

7 CFR § 226.6(b)(2)(vii)(C)

Each “institution must have internal controls

and other management systems in effect to

ensure fiscal accountability and to ensure

that the Program operates in accordance

with the requirements of this part. […]”

Accountability

7 CFR § 226.6(b)(2)(vii)(C)• Integrity and accountability • Timely and accurate claims• Funds and resources used for CACFP

purposes• Procedures in place to safeguard funds

and prevent fraud or abuse

How are you using your CACFP reimbursements?

Allowable Costs

• For all costs:

– Is it CACFP-related?

– Did I seek prior approval (if needed)?

– Did I follow proper procurement procedures?

– Did I allocate the cost (if needed)?

– Do I have proper documentation?

Proper Documentation

• Procurement documents (if applicable)

• Itemized receipts or invoices

• Payroll records

– Time and attendance (if applicable)

• Allocations (if applicable)

Good Financial Management

• Track CACFP food reimbursements

• Track disbursements

• Track CACFP admin reimbursements

• Track CACFP-related expenses

Financial Reports

• Administrative Payment Close-Out Analysis

• Provider Payment Reconciliation Report

• Annual Budget

Admin Payment Close-Out

• Determine total documented actual administrative costs for fiscal year

• Submit close-out analysis and calculation of carry-over by end of December

• Remit unexpended administrative reimbursement in excess of 10% carryover

Provider Payment Reconciliation

• Compare payments disbursed to payments cleared

• Report on prior fiscal year due by first Friday in April

• Cancel un-cashed checks and remit unpaid reimbursements to State Agency (if necessary)

Annual Budget Process

• Develop budget

• Submit budget by August 30

• Receive approval letter by October 1

• Maintain financial documentation

• Track reimbursements and expenses

• Update budget as needed– Submit amendments / approval requests

FY 2014 Budget

• Budget Spreadsheet– Budget for overall CACFP operations

• Budget Narrative for administrative budget

• Supporting Documentation for CACFP-funded items in administrative budget

• Allocation Plan for multi-state sponsors

• Advance Funds Request Form

Developing the Budget

• Determine estimated reimbursements– Use projections for anticipated number of

homes for coming fiscal year

Developing the Budget

• Determine estimated costs

– Base on average costs from current year

– Adjust for projected changes in homes

– Use Labor Budget Worksheet & Homes

Sponsorship Budget

Developing the Budget

• Allowable vs. unallowable costs

• Prior and specific prior written approval

The Budget Spreadsheet

Budget Narrative

• Describe how each line item was determined• Include allocation formula if expense covers:

– CACFP and non-CACFP activities– Home and facility sponsorship

• Identify CACFP-funded items with red asterisk (*) and provide justification– You MUST receive specific prior written approval

(SPWA) separate from budget approval before charging these costs to CACFP

Supporting Documents

• For all CACFP-funded line items:– Submit documentation to support amount,

such as:• Payroll records with compensation plan or time-

and-attendance• Lease agreements• Contracts• Bills

• Not required for non-CACFP funded items

Allocation Plan

• Multi-State Sponsors: – Describe how all costs will be allocated

• Reimbursement percentage or actual time/usage

– Must submit for USDA approval

Advance Funds Request

• For operational and/or administrative

reimbursements

• Average reimbursement for October-June

• Request up to 2 months of advance payment

– October

– November

• Repay advance over 4-10 months

• Submit form with FY 2013 budget documents

even if not requesting an advance

Questions