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Financial Management

Financial Management. Financial Management. Two components: Demonstrating overall V iability, C apability, and A ccountability ( VCA ) Showing how you spend CACFP reimbursements. Are you VCA?. Viable, Capable & Accountable. Financial Management. Financial Viability:

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Financial Management

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  1. Financial Management

  2. Financial Management • Two components: • Demonstrating overall Viability, Capability, and Accountability (VCA) • Showing how you spend CACFP reimbursements

  3. Are you VCA? Viable, Capable & Accountable

  4. Financial Management • Financial Viability: • Adequate financial resources to: • Operate the CACFP on a daily basis • Pay employees and suppliers *Even during temporary disruptions in CACFP payments* • Repay overclaims 7 CFR § 226.6(b)(2)(vii)(A)

  5. Financial Management • Financial Viability: • Demonstrate viability with: • Audit reports • Financial statements • Meeting your financial obligations 7 CFR § 226.6(b)(2)(vii)(A)

  6. Financial Management • Administrative Capability: • “Appropriate and effective management practices” to ensure compliance with CACFP regulations 7 CFR § 226.6(b)(2)(vii)(B)

  7. Financial Management • Administrative Capability: • Demonstrate capability with: • Policies and procedures • Having adequate staff • Training & training documentation • Organized files and complete records • Meeting CACFP requirements 7 CFR § 226.6(b)(2)(vii)(B)

  8. Financial Management • Accountability: • “Internal controls and other management systems” to ensure fiscal integrity and regulatory compliance 7 CFR § 226.6(b)(2)(vii)(C)

  9. Financial Management • Accountability: • Demonstrate accountability with: • Clear record keeping systems • Providing adequate oversight and monitoring • Cross-training employees • Having outside accountants conduct audits 7 CFR § 226.6(b)(2)(vii)(C)

  10. How are you using your CACFP reimbursements?

  11. REMEMBER… Your Costs do not determine your reimbursements

  12. Financial Management • Guiding principles: • Is the item or service necessary for operating the CACFP? • Is the amount reasonable? • Is the item or service an allowable CACFP expense?

  13. Allowable Costs • Operating Costs • Food • Food service labor • Non-food supplies: • Paper products (plates, cups, napkins, etc.) • Dishes • Serving utensils • Cleaning products for the kitchen/food service area • Food service equipment

  14. Allowable Costs • Administrative Costs • Administrative labor • For time spent on CACFP paperwork, training, etc. • Administrative supplies • Paper for CACFP records • Ink to print CACFP records • Portion of cost for computer hardware or software • Administrative services • Portion of cost for an accountant or auditor • Document storage costs

  15. Allowable Costs • For all costs: • Is it CACFP-related? • Is it primarily for the benefit of participants? • 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?

  16. Proper Documentation • Procurement documents • Itemized receipts or invoices • Delivery slips • Donation records • Allocations • Payroll records • Time distribution reports • Mileage logs

  17. Allocations • Allocations are needed if the cost: • Benefits allowable and unallowable activities • Benefits both CACFP and other program areas • Benefits CACFP operations in multiple states • For sponsoring organizations: is both administrative and operational • Must determine whether a cost is direct or indirect (overhead)

  18. Allocations • Indirect cost: Cost of items or services that have a common purpose to support overall operations and cannot be readily assigned to a specific program or funding source • Direct cost: Cost of items or services that can be identified with a specific program or funding source

  19. Allocations • Indirect cost: allocation or rate must be based on a plan approved by the State Agency and is subject to FNS approval • Direct cost: • Allocation must be based on use or benefit • Allocation must be pre-approved by the State Agency

  20. Labor Allocations • Time distribution reports are required if • An allocation is required and • CACFP reimbursements will be used to pay for all or part of the employee’s allowable wages or benefits. • Only the share of the wages and benefits associated with CACFP-related labor may be paid with CACFP funds.

  21. Labor Allocations • Time distribution reports must be: • Done by the employee • Complete • Account for all activity (not just CACFP labor) • Filled out after the fact to reflect actual time spent on various duties • Prepared at least monthly • Signed by the employee • Signed by the employee’s supervisor

  22. Good Financial Management • Track CACFP reimbursements • Track CACFP-related expenses • Monitor non-profit food service status

  23. Is this cost allowable? Food for meals served to children • Allowable • Not allowable • Allowable if…

  24. Claims for Reimbursement Food for meals served to children • Allowable • Not allowable • Allowable if *Need itemized receipts or invoices and delivery slips (if applicable)

  25. Is this cost allowable? Food for meals served to the staff • Allowable • Not allowable • Allowable if…

  26. Claims for Reimbursement Food for meals served to the staff • Allowable • Not allowable • Allowable if * Must perform CACFP-related labor on the day of the meal (includes teachers who serve meals) * Maintain count of the number of meals served to program adults * Allowable cost ≠ eligible for reimbursement

  27. Is this cost allowable? Food for the church’s Sunday spaghetti dinners • Allowable • Not allowable • Allowable if…

  28. Is this cost allowable? Food for the church’s Sunday spaghetti dinners • Allowable • Not allowable • Allowable if… Food served to ineligible participants or adults without CACFP duties is not an allowable cost.

  29. Is this cost allowable? The gas and electricity bill • Allowable • Not allowable • Allowable if…

  30. Is this cost allowable? The gas and electricity bill • Allowable • Not allowable • Allowable if… * Allowable as an indirect cost if the State Agency approved it as part of your indirect cost plan * Allowable as a direct cost if the State Agency approved the allocation plan * Must have bill + proof of payment + documentation to support allocation (ex. floor plan with square footage)

  31. Is this cost allowable? Play equipment • Allowable • Not allowable • Allowable if…

  32. Is this cost allowable? Play equipment • Allowable • Not allowable • Allowable if… Play equipment is not necessary for operating the CACFP.

  33. Is this cost allowable? Salary of the center director • Allowable • Not allowable • Allowable if…

  34. Is this cost allowable? Salary of the center director • Allowable • Not allowable • Allowable if… *Must maintain payroll records and time distribution reports. *Only time spent on CACFP duties may be paid with CACFP funds.

  35. Is this cost allowable? Paper products (plates, napkins, etc.) • Allowable • Not allowable • Allowable if…

  36. Is this cost allowable? Paper products (plates, napkins, etc.) • Allowable • Not allowable • Allowable if… *Need itemized receipts or invoices

  37. Is this cost allowable? A printer/fax machine/scanner • Allowable • Not allowable • Allowable if…

  38. Is this cost allowable? A printer/fax machine/scanner • Allowable • Not allowable • Allowable if… * Allowable as a direct cost if the State Agency approved the allocation plan * Must have the receipt/invoice and documentation to support allocation

  39. Is this cost allowable? An accordion file folder for your records • Allowable • Not allowable • Allowable if…

  40. Is this cost allowable? An accordion file folder for your records • Allowable • Not allowable • Allowable if… *Need itemized receipts or invoices

  41. Is this cost allowable? Baby bottles • Allowable • Not allowable • Allowable if…

  42. Is this cost allowable? Baby bottles • Allowable • Not allowable • Allowable if… *Need itemized receipts or invoices

  43. Is this cost allowable? Coffee for the staff break room • Allowable • Not allowable • Allowable if…

  44. Is this cost allowable? Coffee for the staff break room • Allowable • Not allowable • Allowable if… *Not necessary for operating the CACFP *Not CACFP-related

  45. Is this cost allowable? Milk from the corner store • Allowable • Not allowable • Allowable if…

  46. Is this cost allowable? Milk from the corner store • Allowable • Not allowable • Allowable if… *Not itemized

  47. Is this cost allowable? ServSafe training for your food safety manager(s) • Allowable • Not allowable • Allowable if…

  48. Is this cost allowable? ServSafe training for your food safety manager(s) • Allowable • Not allowable • Allowable if… *Need receipt or invoice and training certificate

  49. Is this cost allowable? A diploma frame for every staff member’s ServSafe certificate • Allowable • Not allowable • Allowable if…

  50. Is this cost allowable? A diploma frame for every staff member’s ServSafe certificate • Allowable • Not allowable • Allowable if… *Unreasonablecost

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