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