Financial Management

1. Financial Management

2. Counting & Claiming • Meals are counted at the point in the food service operation where it can be accurately determined that reimbursable free, reduced-price, or paid meals have been served to eligible students. • Meal counts are reported to your director by category.

3. Non-Program Adults • Meals served to adults are neither eligible under the authorizing legislation for the School Lunch & Breakfast programs nor do they earn commodity assistance. • The school food authority must ensure that all revenue earned by the CNP does not subsidize program meal served to adults.

4. Adult Meal Price • Price of full paid child meal + Federal reimbursement + Value of commodities

5. Counting Money • ALWAYS have 2 people count the money in an enclosed place. • Store money in school safe at night. • Divide the responsibilities for record keeping and counting money. Do not let one person handle both tasks.

6. Daily Edit Checks • Inaccurate meal counts can cause loss of reimbursement • POS system automates this process • Calculated daily

7. Internal ControlsCustomer Theft • Train staff about theft on the serving line • Place cashiers at exit of the serving area • Place a la carte before cashier

8. Internal ControlEmployee Theft • Take a daily inventory of pre-packaged items • One person to a cash drawer • Keep the cash drawer locked • Count money after each meal • Deposit money daily

9. CNP Revenue • Reimbursement (free, reduced, & paid students) • Adult meal sales • A la carte • Extra meals/components • Catering • Special school functions

10. CNP Revenue • Commodities • Subsidies • Interest bearing bank accounts • Rebates • Contributions

11. CNP Expenditures • Salary/wages • Fringe benefits • Purchased services • Operating, maintenance, & energy • Food • Non-food supplies • Capital equipment & supplies

12. Food Production Standards • Meal Equivalents (MEQ) is the rate used to compare the amount of labor needed to prepare breakfast, snack, or a la carte with the labor needed to prepare one lunch. • 1 lunch = 1 meal equivalent • 2 breakfasts = 1 meal equivalent • 4 snacks = 1 meal equivalent • $3.00 a la carte = 1 meal equivalent

13. Meals Per labor Hour Current meal equivalents ____________________ Total labor hours worked Meals per labor hour =

14. Meal Equivalents • 80 breakfasts = 40 MEQ • 60 snacks = 15 MEQ • $270 a la carte = 90 MEQ • 200 lunches = 200 MEQ • Total = 345 MEQ

15. Labors • Manager 6 hours day • 1 staff 5 hours day • 1staff 4 hours day • Total = 15 hours day

16. Meals Per Labor Hour • 345 MEQ ÷ 15 hours = 23

17. What Happens When… • Participation increases? • 80 breakfasts = 40 MEQ • 60 snacks = 15 MEQ • $270 a la carte = 90 MEQ • 250 lunches = 250 MEQ • Total = 395 MEQ • 395 MEQ ÷ 15 hours = 26.33

18. What Happens When… • A la carte sales increase? • 80 breakfasts = 40 MEQ • 60 snacks = 15 MEQ • $300 a la carte = 100 MEQ • 200 lunches = 200 MEQ • Total = 355 MEQ • 355 MEQ ÷ 15 hours = 23.66

19. What Happens When… • Total hours worked decreases? • Manager 6 hours day • 1 staff 3 hours day • 1staff 4 hours day • Total = 13 hours day • 345 MEQ ÷ 13 hours = 26.5

20. Alabama Productivity Standards • 16-19 meals per labor hour

21. Calculating Food Cost Percentage • The percentage of total expenditures spent on food. • Alabama standard 30-34%

22. Calculating Labor Cost Percentage • The percentage of total expenditures spent on labor. • Alabama standard is 42-46%

23. CNP “Money” Pie Food 30-34% Other 20-28% Labor 42-46%

24. Jackson Primary School • Where can revenue be increased? • Paid students 76 breakfasts 38 lunches • Free students 87 breakfasts 26 lunches • Reduced-Price 6 breakfasts 3 lunches