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ICR for CNP

ICR for CNP. Application of Indirect Cost Rate for the Federal Child Nutrition Programs – Part 1I Presented by Mila Makal. IC and Food Service Fund. School Nutrition Association: Summary of Questions, Concerns and Possibilities . How much can the business manager take?

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ICR for CNP

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  1. ICR for CNP Application of Indirect Cost Rate for the Federal Child Nutrition Programs – Part 1I Presented by Mila Makal

  2. IC and Food Service Fund • School Nutrition Association: Summary of Questions, Concerns and Possibilities. • How much can the business manager take? • ADE overview of the ICR calculation (Part 1) and proper application of the rate to the food service operations (Part 2).

  3. OMT! Direct and indirect costs? • Payroll, Data Processing and Utilities are examples of __________ costs. • If there is separate electric meter with a separate bill paid from food service account, costs are considered ________ costs. • Indirect Cost/Direct Cost = ____ .

  4. To Restrict or Not to Restrict? • ____________ rates are designed to implement “Supplement-not-Supplant” legislation. • Plant maintenance is not used in ____ ICR. • Food Service uses ________ ICR.

  5. Do I need to be an expert on ICR? • Yes or No? • Can district always charge ICR to food service? • Is there a limit on how much a district can charge? • Food Service Manager should be an expert on ___________.

  6. IC for Food Service Directors • Computation of Indirect Cost amount. • How “ICR” affects Indirect Cost? • Am I alone? Are all districts charging “IC” to Food Service? • What Happens to My Food Service Money? • Planning for the future…

  7. Computation of Indirect Cost amount • Step (1) Request ______. • Step (2) Calculate Base Amount for Indirect Cost. • Step (3) Calculate Allowable Indirect Cost.

  8. How is Base Amount for Indirect Cost calculated? • Indirect Cost Base (ICB) ICB = AE – VOC AE = Allowable Expenditures VOC = Value of _________ • Allowable Indirect Costs (AIC) AIC = ICB x (ICR x 0.01) ICB = Indirect Cost Base ICR = Indirect Cost Rate (e.g., 12.72%)

  9. What is Indirect Cost Base (ICB) • ADD allowable expenditures… (Handout #1) – OR – • TOTAL the expenditures for food service fund and DEDUCT expenditures for Other Food, VOC and Equipment Depreciation.

  10. How to calculate Allowable Indirect Cost? • Compare the net expenditures to the f_______ __________. • Select lesser amount and multiply by the approved ___ ________ ______ ____ ____ (ICR).

  11. Indirect Costs in the School Nutrition. • Why SFA’s Business Office seeks to recover indirect cost? • Examples of district’s costs. • More/Less schools districts are considering billing the programs.

  12. I feel so alone? IC breakdown. • NFSMI Financial Management Benchmarks study found that __ % of SNPs paid indirect costs to the school district. ___ % paid the entire allowable amount. • Arizona 2009 District Food Service Report indicates: 48 Districts charged IC (25%) 143 Districts – no IC (75%)

  13. Where is MY money transferred? • Indirect Costs Fund (570) • Expenditure Object Code 6910 used for transfer. • Revenue Object Code 5200 Interfund Transfers-In should in IC fund (570). • The amount transferred may not exceed ________________.

  14. What is affected by ICR? • IC amount that can be transferred from Food Service. • Per Meal Costs. • Including expenditure object code 6910 in your budget. • Know your ICR percentage. • Monitor Excess Cash requirement. • Prevent debt.

  15. Contact Info • Mila Makal ARIZONA DEPARTMENT OF EDUCATION 1535 W JEFFERSON ST BIN# 7 PHOENIX, AZ 85007 • (602) 542-8714 • mila.makal@azed.gov

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