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
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
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