Welcome The Child and Adult Care Food Program Budget Training

1. Welcome The Child and Adult Care Food Program Budget Training

2. Training Objectives • Purpose of CACFP • Vision Statement • Non-Discrimination Statement • Identify Regulatory Authority for the Child and Adult Care Food Program Budget • Budget Submission • GA ATLAS • Purpose of the Budget • Discuss How to Identify Revenue • Identifying Costs that are Reasonable • Introduction of Budget Categories • Combo Sponsors

3. Training Objectives Cont.… • Identify when Revisions are Required • Common Errors • Budget Tools and References • Budget Contact Information

4. Purpose of CACFP CACFP Funds are provided to assist State agencies through grants and other means to initiate and maintain nonprofit food service Program for eligible children and adult participants in nonresidential institutions that provide care. • See FNS Instruction 796-2 Rev. 4

5. Nutrition Services Vision Statement Working together with our partners to eradicate hunger and ensure nutritious meals for all Georgians!

6. Non-Discrimination Statement In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA. Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English.  To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: http://www.ascr.usda.gov/complaint_filing_cust.html, and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:   (1)mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410;   • fax: (202) 690-7442; or • email: program.intake@usda.gov This institution is an equal opportunity provider.

7. Regulatory Authority for the Child and Adult Care Program

8. CACFP Regulations and Policy Memos The regulations that govern the Child and Adult Care Food Program are found in Title 7 Code of Federal Regulation Part 226 and policy memoranda created by the USDA to clarify CACFP regulations and/or FNS guidance are located on the Bright from the Start website located at http://decal.ga.gov/documents/attachments/CACFPRegulations7CFR226.pdf Policies and procedures developed by Bright from the Start to clarify program regulations or improve program operations are located on the Bright from the Start website located at http://decal.ga.gov/Nutrition/BrightFromTheStartPolicies.aspx Policy memoranda created by Bright from the Start to clarify CACFP regulations and/or FNS guidance are located on the Bright from the Start website located at http://decal.ga.gov/Nutrition/CACFPBrightFromTheStartMemos.aspx

9. Budget Guidance Manual • The Department of Early Care and Learning (DECAL) also provides financial management guidance. • The manual provides specific guidance for documentation maintenance and revisions as it relates to the CACFP. • This guidance is located on the DECAL website at http://decal.ga.gov/documents/attachments/budgetguidancemanual.pdf

10. Budget Submission

11. Budget Submission • CACFP Independent Institutions (7 CFR 226.7 g) • Required to submit a budget with their initial application. • A budget revision is required if the center project costs that require prior, specific prior written approval or use the meal reimbursement to pay for allowable administrative expenses. • If new supporting documents are required to be submitted in accordance FNS 796-2 Rev.4, and & CFR 226, and 2 CFR 200, the independent center must submit a revised budget and annually thereafter. • CACFP Sponsors of Affiliated and Unaffiliated Centers (7 CFR 226.6 f). • Required to submit a budget annually. • The administrative budget must have sufficient detailed information concerning projected CACFP earnings and expenses as well as other non-program funds to be used to operate the food service program. • CACFP Day Care Homes (DCH) Sponsors (7 CFR 226.7 g) • Required to submit a budget annually. • The administrative budget must have sufficient detailed information concerning projected CACFP earnings and expenses as well as other non-program funds to be used to operate the food service program.

12. GA ATLAS

13. GA ATLAS • GA ATLAS Child, Adult, and Summer Nutrition Programs • ATLAS - Access Training Learning Application System • Combined Budget for Sponsors with multiple agreement numbers and program types. All costs are represented in total, then allocated for the organization: • Day Care Home Sponsors • Administrative Sponsors • Center Sponsors • Summer Sponsors .

14. GA ATLAS • Sponsors must: • Isolate CACFP Costs outside of ATLAS • Allocate CACFP cost in ATLAS by Administrative and Operating Function • Sponsor must maintain itemized details to support annual totals • Sponsor’s documents must maintain detailed support for cost by Program and by function

15. GA ATLAS • In the Total Amount field enter the total yearly costs related to the cost category. The total costs can include CACFP, SFSP and Other Fund Costs. • In the % CACFP column enter the percentage that represent the CACFP portion of cost. • Use the % Other Funds column to represent any non-CACFP portion of costs. • (CLICK THE WORD “CLOSE” TO SAVE DATA)

16. Purpose of the Budget

17. SEE 7 CFR 226 Purpose • To plan for expected expenditures (administrative and/or operating) the food service program. • To ensure adequate financial resources are available to cover expected costs. • To ensure adequate staff are in place to provide appropriate coverage to comply with Program food service and monitoring requirements. • To demonstrate capability, viability and accountability.

18. IDENTIFY REVENUE

19. DeterminingtheEstimatedAmountofIncome fromEach FundingSource • Fundingsourcesinclude(but arenotlimitedto): • ProjectedCACFPmealreimbursement. • Other Funding sources • Caps, Parent Fees, Grants, Donations, and excess SFSP Funds • Prior Fiscal Year Ending Balance in the Food Service • Prior Fiscal Year Excess Administrative Earnings  

20. WhatistheProjectedMealReimbursement? • An estimate of the number of dollars an institution expects to receive for the CACFP for the upcoming fiscal year. • The projected reimbursement allows you to estimate funding that will be received from the United States Department of Agriculture for related Program expenses.

21. CalculatingtheProjectedMeal Reimbursement(cont.) New Center Completethe projected mealreimbursement worksheet. §Whatisneeded? §Thenumber offree, reduced, andpaid participantsin your institution. §Themealtype(s)that will beserved. §Theanticipatednumberof operatingdaysfor the fiscal year NewCenter Sponsors Gatherfromeach institution

22. Anticipated Annual CACFP Reimbursement (Projected Total Meals x Rate Annual Revenue) = Total Revenue

23. CalculatingtheProjectedMeal Reimbursement(cont.) NewDayCareHomeSponsor §Completetheprojectedmeal reimbursementworksheet. §WillneedthetotalnumberofDay CareHomesyourinstitutionwill Sponsor.

24. Projected Reimbursement Restrictions • Limitation to the amount of funding that can be used toward administrative expenses. • Independent Centers and Center Sponsors can apply up to a maximum of 15% of the annual meal reimbursement towards administrative costs. • The projected reimbursement worksheet can be used to provide your institution's estimate. • Estimate vs. Actual Reimbursement. • Day Care Home Sponsors can charge administrative costs to the Program. • The estimate can be determined by using the projected reimbursement worksheet for Day Care Home Sponsors.

25. Other Sources of Income

26. Other Sources of Income • Prior Fiscal Year Ending Balance in the Food Service Account. • The remaining balance in the food service account at the end of the prior fiscal year. • The amount of CACFP income that was earned but not spent in the prior fiscal year(s). • The Program account balance should be zero, if all of the CACFP income that was earned in the prior fiscal year(s) was spent. • CACFP administrative earnings should be deducted, when reporting the ending balance.

27. Prior Fiscal Year Excess Administrative Earnings - Day Care Home Sponsors Only Receive Admin. Earnings Excess Admin. Earnings Included in new budget?

28. Prior Fiscal Year Excess Administrative Earnings - Day Care Home Sponsors Only • Anyadministrativefundsremainingattheend ofthefiscalyearthatexceed10%ofthatfiscalyear’sadministrativepaymentsmustbe returnedtoDECAL. • Ifthe10%“carryoverfunds”arenotutilized inthesucceedingfiscalyear,theDayCare HomeSponsorsisrequiredtoreturntheunusedfundstoDECAL. • Repaymentoffundscanbeavoidedbyusing paymentsforCACFPadministrativecostsona first-in-first-outbasis.

29. Revenue What it is: • Anticipated Annual CACFP Reimbursement • CAPS, Pre-K, SFSP • Excess Earning from the CACFP Program • Other Grants • Revenue Producing Activities What it is NOT: • Costs projected in the Budget • Actual Expenditures

30. Identifying Reasonable Costs

31. General Budget Costs • Generally Allowable Costs - Costs that occur in the routine operation of the CACFP. While these costs are generally allowable (necessary and reasonable), an institution must disclose these costs in the operating and administrativebudget. (Ex. Food Costs) • Generally allowable costs, such as food costs, may not require further disclosure per line item. However, there are other generally allowable costs, such as labor costs, that will require full disclosure depending on the cost category. • DECAL may disallow costs that do not meet the necessary requirements. Reasons for disallowance of generally allowable costs are as follows:  • Lack of documentation • Failure of full disclosure • Not approved in the budget • Inappropriate or unacceptable allocation methodologies • Inconsistent with compensation plan • Inconsistent with allocation plan   • Costs that are deemed disallowed are subject to repayment to DECAL and/or repayment to the institution/sponsor’s food service account. See FNS Instruction 796-2 Rev. 4 VIII D

32. General Budget Costs • Prior Approval Costs - Costs that require prior approval are costs that must be specifically identified by item and amount during the budget process. (Ex. Communication Costs – Cellular phones & pagers owned or leased by the institution) • Specific Prior Written Approval Costs - Cost that require specific prior written approval are costs that are not customarily incurred in the routine operation of CACFP, but are sometimes necessary and reasonable for proper and effective CACFP operations. These expenses are not allowed unless DECAL has provided the institution with specific written approval by item and amount BEFORE the cost is incurred. (ex. Cell phone Costs) A SPWA form must be completed by the institution. (Appendix A, Budget Guidance Manual) Related Party Disclosures - Disclosure of less than arm’s length transactions must be made when such relationship exist between related parties. A related party is a person, place or thing related to or closely held by another person, place or thing. Federal regulations require that related party transactions be disclosed when federal funds are planned for such transactions. The institution must complete a Related Party Disclosure Form along with a Specific Written Approval Form. (Appendix H, Budget Guidance Manual)

33. Identify Related Party Transaction • Related Parties are defined as: • Person, place, or thing related to or closely held by another person, place, or thing • Examples Include: • Management and immediate family members • Principal owners and immediate family members • One party controls or has significant/substantial influence over management/operating policies of the other • Related Party Transaction is: • A business deal or arrangement between two parties who are joined by a special relationship, prior to the deal. • Examples Include: • Business transaction between a board member and the corporation, where the board member owns the company with whom a contract exist for accounting/bookkeeping services

34. Disclosure of Related Party Transactions The State Agency (SA) has the responsibility of ensuring that costs are allowable. SA financial management requirements include the disclosure of related party transactions. • Disclosure Requirements: • Related Party Disclosure Form • Specific Prior Written Approval Form

35. Identify All Food Costs • Realistic • Historical Data • Administrative Cost must be approved in the budget • Related Party Transactions Disclose all Food Related Costs

36. Identify All Food Related Costs • Realistic • Based on Quotes • Based on Projections • Historical Data • Previous organizational experience serving meals • Capacity - How many sites/children/meals are you staffed to handle • How many paid/volunteer Operating/Administrative staff on hand

37. CACFPOperatingCosts HowTheyAre Identified?

38. CACFP Operating Costs • Provides a financial perspective of Program expenses that are associated with: • Preparation of meals • Serving of meals • Cleaning-up of meals • Represent allowable costs. • Supported by other non-government funds.

39. Identifying Operating Costs Preparation Food, pots&pans,cooking staples,and foodservicelabor. Clean-up Paper towels,dish detergent, broom&dust pan,anddish towels. Service Plates, cups,forks,and spoons.

40. CACFPAdministrative Costs HowThey AreIdentified?

41. CACFP Administrative Costs • Provides a financial perspective of Program expenses that are associated with: • Planning • Organizing • Managing • Represent allowable costs. • Supported by other non-government funds.

42. IdentifyingAdministrative Costs AdministrativeExpenses-Planning,Organizing,and ManagingtheCACFP.

43. Rules for All Costs • Necessary and Reasonable for proper and efficient administration of the program • Allowable or authorized and not prohibited under State or local laws or regulations • Approved through the budget process • Allocated and not chargeable or included as cost to other programs, and net of all applicable credits • Program Costs are incurred within the Program Period • Documented with paid receipts, invoices, contracts, agreements, bank records, and accounting records, and required forms.

44. Budget Categories

45. There are 22 Budget Cost Categories: B1. Pre-Award Costs/SFSP B2. Food Costs B3. Non-Food Supplies Costs B4. Facilities and Space Costs B5. Labor and Benefits Costs B6. Contracted Labor Costs B7. Equipment Costs B8. Expendable Supplies B9. Durable Supplies Costs B10. Cellular Costs B11. Communication Costs B12. Travel Costs and Mileage Reimbursement B13. Contracted Costs B14. Utility and Maintenance/Janitorial Costs B15. Other and Special Costs B16. Advertising & Public Relations

46. Budget Cost Categories cont. B17. Meetings and Conferences B18. Participant Training & Other Participant Support Costs B19. Proposal Costs B20. Publication, Printing & Reproduction B21. Insurance Costs B22. Indirect Costs

47. B1. Pre-Award Costs • Costs allowed by SFSP Program(only) • Are cost incurred prior to the effective dates of the award (approval to participate in the SFSP) directly pursuant to the negotiation and in anticipation of the award where such costs are necessary to comply with the proposed delivery schedule or period of performance. Cost more than 90 days pre-award require approval of the Federal awarding agency.

48. B1. Pre-Award Costs • Documentation that must be submitted for review and approval: • Approved Pre-Award Costs Request Form • Invoice/Receipts/Quotes

49. B1. Pre-Awards Costs • Documentation that must be maintained on file, available upon request for review: • Invoices/Receipts/Quotes • Canceled checks and/or bank statements • All Procurement documentation( small purchase form, formal bid documents, etc.)

50. B2. Food Cost • Food Cost Types • Contracted Costs • Typically utilized when costs are projected to be greater than $250,000. • Vended and Self Prep • Agreement to Furnish Food is executed • Formal Procurement is required • Store Purchases • Typically utilized when costs are projected to be less than $250,000. • Self Prep • Vended when milk or juice is excluded from unitized meal