Financial Records for CACFP

1. Financial Records for CACFP

2. Nonprofit Food Service Operation, p.71 • CACFP is like a separate nonprofit business within your business • Must show you spend reimbursement in an allowable way

3. How Do You Demonstrate You Are Running a Nonprofit Food Service Operation? • By using the money in an appropriate manner • By tracking the money you receive and how it was used p. 71

4. Allowable Costs Costs you can claim as legitimate expenses in CACFP p. 72

5. Allowable Costs • Amount paid is based upon: • Number of meals you serve • Eligibility of the participants • The funds you receive will not cover all of yourallowable costs p. 72

6. Remember! The CACFP funds are replacing funds you are now spending p. 71

7. Allowable Costs, p. 72 • Operating costs • Costs for the preparation and service of meals • Food – 50% minimum • Administrative costs- • 15% limit

8. Food Costs • Costs in purchasing ingredients for foods that are served to the participants • Food costs include sales taxes and deliveryfees p. 72

9. Food Costs • Cost of food used to prepare meals for staff performing labor necessary to the food service operation • You may not claim staff meals • You may only claim the cost of their meals as an expense • Must be the same meal served the participants p. 72

10. Purchased Meals, p. 85 • Costs of purchased,prepared meals are food costs • Contract must be signed prior to beginning date • The vendor must keep production records(a record of quantityof food prepared)

11. Milk Cigarettes Personal Groceries Spices Bread Crab meat Soda Pop Rabbit Food Teacher Meals Which are allowable food costs?          You may never claim a teacher’s meal; you may report the cost of their meal p. 73

12. Records Needed to document Food Costs • Invoices or • Receipts, or • Itemized bills p. 72

13. Invoice Form, p. 77 • Good to use with receipts that are: • Not itemized, or • Donated items used in the food program

14. Bread Store Loaf Bread 16 @ $1 4 bx. @ $2 Cookies $26.40  108 3/29/00 Sherry Smith

15. Donated Milk MUST have a signed and dated receipt from the individual donating the milk!!!! MUST be documented on an invoice form! p. 77

16. Ron Davis Milk 2 gal. Ron Davis  Sherry Smith 3/29/00

17. Costs of Nonfood Supplies, p.73 • Nonfood items used in preparing and serving the meal…

18. Costs of Nonfood Supplies • Paper goods • Napkins • plastic forks and spoons • Cleaning supplies useddirectly for the food service operation • Chlorine bleach • Dish detergent p. 73

19. Costs of Nonfood Supplies • Small kitchen equipment (cost less than $300) • Serving utensils • Eating utensils • Trash cans for the kitchen • Pots and pans • Small microwave oven p. 73

20. Records to documentCosts of Nonfood Supplies • Invoices • Receipts, or • Itemized bills p. 72

21. Dishes Milk Stove Cups Arts/Crafts Supplies Toilet paper Cooking utensils Dishwashing detergent Paper towels used in the classrooms Which are allowable nonfood supplies?          p. 73

22. Food Service Labor All wages, salaries, employee benefits, and the share of the taxes paid by the sponsor. p. 73

23. Food Service Labor • Menu planning • Food purchasing • Cooking • Serving the food • Cleaning-up after the meal p. 73

24. Food Service Labor is also… • Time spent completing required records • Attendance records • Records we will cover later • Production records • Menu form • Supervision of day-to-day food service operations p. 73

25. Food Service Labor • Records to document food service labor include: • time sheets and • payroll records You must be able to document time spent. You cannot just allocate an amount of money. p. 73

26. Time Sheet • Time sheets must show the start and end time of each activity and what is done. p. 78

27. Time Sheet, page 78

28. Payroll Records

29. Costs of Some Purchased Services • Purchased services are services you purchase from someone else • They include… p. 74

30. Maintenance of Kitchen • Plumbing directly related to cooking and clean up • Repair of kitchenequipment p. 74

31. Allocated Purchased Services • Allocated costs include: • Pest control • Trash pick-up • Utilities • Must be able to determine how much is for the center and how much is for the CACFP (Allocation Plans, p.161-163) p. 74

32. Direct Purchased Services • Costs for which the entire costs belong to the food program • Kitchen equipment repair • Special membership fees for group purchasing • Health Department Permits p. 74

33. Records to documentCosts of Purchased Services • Invoices, • Itemized Receipts, and/or • Allocation studies

34. Other Service Expenditures • Large Kitchen Equipment • purchases over $300 • must get prior approval from SDE CACFP does not have extra money for you to use to buy equipment! p. 74

35. Operating Costs - Summary • Food costs (50%) • Costs of nonfood supplies • Food service labor • Costs of purchased services • Other service expenditures – Equipment purchaseover $300 p. 72-74

36. Administrative Costs, p.75 • Most centers do not have any money to put in this category • No more than 15% of reimbursement may bespent on Administrativecosts • Administrative costs • Labor • Other

37. Administrative Labor: • Preparing the monthly claim • Completing F/RP Applications • Maintaining the Master Roster • Monitoring (required for sponsors with 2 or more centers)

38. Administrative Labor • Must have accurate time records. • Records must show where one job endsand the CACFP administrativeduties begin.

39. Other Administrative Costs include: • Checks for CACFP Account • CACFP Checking Account Fee

40. Allowable Costs • Operating Costs • Costs for the preparation and service of meals • Food – 50% minimum • Administrative Costs- • 15% limit • Just because it is allowable, does not mean you will have food program money to pay for it!

41. Un-Allowable Expenditures • Interest expense • Return check fees • Loans for any reason from the CACFP account • Cola drinks • Food and beverage consumed by staff (i.e., coffee) • Food served to participants at times other than meal times • Equipment purchases, over $300, without prior approval p. 76

42. Documenting Expenditures, p. 72 • Receipts • Payment documentation,such as a canceled check • A tracking or bookkeeping system

43. Receipts: • Invoices from a food distributor or milk vendor • Grocery Store Receipts • Itemized (identify what is purchased) • Only allowable items on the receipt; NO personal expenditures p. 72

44. A separate checking account is required for most sponsors! p. 72 & State Policy 01-1

45. Payment Documentation • Use checks (debit card) for all purchases • Separate food program from personal and center purchases • Get rid of petty cash for food program purchases p. 72

46. Tracking System: • Shows money received and money spent • Formal bookkeeping system • Separate CACFP from the Center income and expenditures • NOT a checking account ledger p. 80

47. Tracking Systems: • Bookkeeping systems such as: • Computer programs: • QuickBooks • Peachtree accounting • Manual systems: • Monthly General Journal* • Ledgers p. 80

48. Budget • Will do at on-site visit • Allocate funds in as few allowable categories as possible • Check your food expenditures and budget all of those costs in your budget • Budget in other categories based upon “ease” of documentation

49. Remember! • You must have receipts • Keep personal expenses separated from the day care and CACFP • Daily time sheets if claiming labor • Separate checking account • Tracking system