1. Funding your CACFP Adventure: CACFP Financial Management
2014 CACFP Financial Management Summer Training - Centers
Funding your CACFP Adventure: CACFP Financial Management
Sponsors and Independent
Child and Adult Care Centers
CACFP Summer Conference
May 21, 2014

2. Map of CACP Financial Management
Budget and Plan
Accounting System and Recordkeeping
Incur Food Program Costs
Track Food Program Costs & Retain documentation
Submit Reimbursement Claim
Reimbursement Received
Report to DPI (Annually/Quarterly
Review and Success

3. CACFP Map Key
Agency: The organization name on the CACFP Application. Same as the name on the federal tax-exempt status (non-profit) or the legal name of the agency (for-profit).
Child and Adult Care Food Program (CACFP): Federally funded program through USDA and administered in WI by the Department of Public Instruction. Provides reimbursement for eligible meals served to enrolled participants. Sometimes referred to as the “Food Program”.
Nonprofit Food Service Financial Report (NPFS): DPI form required from all participating agencies (for-profit and non-profit) that is used to report actual food program expenditures and earned food program revenue. Annually = Independent and Quarterly = Sponsors.
United States Department of Agriculture (USDA): The federal branch of government that oversees and regulates the CACFP administered to State Agencies.

4. CACFP Map Key
Department of Public Instruction (DPI): The Department in the State of WI that administers the CACFP to participating institutions.
Institution: A licensed center that contracts with the DPI to administer the CACFP to it’s enrolled participants. Also referred to as an “Agency”. Two types:
Independent: One site participating in the CACFP.
Sponsoring Organization (SO): Two or more sites participating in the CACFP.
Affiliated - same legal entity as the Institution/Agency.
Unaffiliated – no affiliation with Sponsor – SO must be non-profit

5. Child and Adult Care Food Program
2014 CACFP Financial Management Summer Training - Centers
Child and Adult Care Food Program
IS NOT
“Free” money
Funding for personal expenses
To purchase soda/coffee for teachers, non-healthy and/or not enough food and snacks for participants
Entitlement Program
For the disorganized IS
Federally Funded
Passed through DPI
a FOOD Program
Healthy meals to eligible participants
Optional Program
Except in Head Start
Heavily Administered
Detailed program requirements.
To ensure you have the right map…

6. Planning: What you will need
Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures

7. Planning: What you will need
Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures

8. CACFP Reimbursement CACFP Reimbursement is based upon:
Number of meals approved to claim
Eligibility of the enrolled participants
The funds you receive will not cover all of your allowable FP costs.

9. Other Source of Income CACFP is part of your overall organization.
2014 CACFP Financial Management Summer Training - Centers
Other Source of Income
CACFP is part of your overall organization.
Funds received to run organization must also be available to fund CACFP costs not covered by reimbursement.
Examples: Headstart, Tuition, W-2, Fundraising, Private Donations
Food Stamps is not another source of income for the center.
Report projected Source and Amount on Budget

10. Resources Available Guidance Memorandum #2
Reimbursement Calculation Worksheet
Child Care:
Adult Care:

11. Planning: What you will need
Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures

12. CACFP BUDGET Projection – “Road Map” of Upcoming Program Year
2014 CACFP Financial Management Summer Training - Centers
CACFP BUDGET
Projection – “Road Map” of Upcoming Program Year
Costs must be Allowable, Reasonable, in accordance to FNS Instruction
All Revenue Available to fund CACFP
Budget Summary submitted with online application
Figures Updated every year.
Detailed Budget (Attachment G) for Sponsors
Required every three years – uploaded to online application – NEW FFY2015
All Revenue Available:
CACFP Meal Reimbursement
CACFP Cash-in-lieu reimbursement
Interest earned on CACFP funds and/or other FS income
“Other” Non-CACFP Income
Unfunded/Unallowable Costs
SA Overclaims
Interruption in Program Payments
Ex. Child Care Fees, Tuition, Headstart, W-2, Donations

13. Administrative & Operational Costs
Monitoring
Claim
Compiling
Submitting
Reconciling
Accounting / Bookkeeping
Operational
Kitchen
Meals
Preparation
Delivery
Menus
Purchasing / Vended Meals

14. Frequent Allowable CACFP Costs (list is not all inclusive)
Food (consumable)
Kitchen Supplies/Nonfood
Contract / Vended Meals
Food Program Personnel
Admin & Operational
# of CACFP hours must be tracked
Employee CACFP Travel
e.g. Grocery shopping, DPI training
Audit Services
CACFP Portion
Equipment Purchase/Rental

15. Food Costs
Costs in purchasing ingredients for menu items (Food Supplies) AND/OR the cost of purchasing itemized CACFP meals from an outside vendor (Contracted Service) that are served to the participants
Should be at least 40-50% of budget
For healthy, reimbursable meals at least ½ of reimbursement on food costs.

16. Food Supplies
Consumable food products used to create menu items served to program participants.
Costs can include delivery costs.
Taxes must be paid with non-CACFP funds (tax-exempt).
Report on the Food Supplies/Food Costs line on budget and NPFS.

17. Food Vendors / FSMC Outside food service, not related to agency.
Contract approved with DPI
Provide all CACFP components.
Report as Contracted Services on CACFP Budget and Financial Report
Independent: Report as “Other” cost and specify.

18. Food Service Labor
All wages, salaries, employee benefits, and the share of the employee taxes paid by the agency.

19. Operational Food Service Labor
Menu planning
Production Records
Food purchasing
Cooking
Serving the food
Cleaning-up after the meal
Meal Attendance

20. Food Service Labor is also…
Time spent completing required records
HSIR and HSIS
Monthly claim
Financial reports
Supervision of day-to-day food service operations
These are Administrative costs

21. Administrative Costs
Sponsors: No more than 15% of CACFP meal reimbursement can be spent on administrative costs without State Agency waiver.
Independent Centers: Not an issue because CACFP meal reimbursement is usually spent on operational costs, any leftover should be less than 15%.

22. Administrative Costs
CACFP Administrative Costs should never be higher then CACFP Operational Costs.
It should cost an agency more to prepare and serve the meals then doing the paperwork and monitoring of the program.

23. Frequent Unallowable CACFP Costs (lists are not all inclusive)
Bad Debts, Fines, Penalties
Non food program food costs
Coffee, non-CACFP personnel meals (i.e. driver, maintenance, non-employee/family member)
Entertainment
“Family Night”, catering costs
Purchase of food/supplies for personal use
Money received must be kept in food program account. Must have strict internal policy.
Undocumented Expenses
i.e. “Payroll” for Owner with no documentation worked in Program

24. Resources for Allowable/Unallowable Costs
Guidance Memorandum #11
Summary of CACFP Allowable Costs
User friendly, searchable, Excel reference
Child Care:
Adult Care:
FNS Instruction (rev. 4)
Electronic copy available on our website at
Derived from OMB Circulars and Federal Regulations for Financial Management for federal funding.
CACFP Budget

25. Planning: What you will need
Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures

26. Bank Accounts ACH Payments Must be in agency’s legal name
Must be in agency’s legal name
W-9 verified by DPI
Must have two people responsible
Reimbursement will no longer be issued via check
Notify DPI immediately with changes

27. Planning: What you will need
Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures

28. * Information per US GAAP
2014 CACFP Financial Management Summer Training - Centers
Accounting Systems
Acceptable
Center credit card
Center checking account
Charge Account at local store
Invoice or COD
Food delivery vendor
Unacceptable
Cash
Including cash-back
Third party checks
Food Stamps
* Information per US GAAP

29. Accounting System Financial Reports
2014 CACFP Financial Management Summer Training - Centers
Accounting System
Method of tracking expenses and revenue in your organization
Cash/Accrual/Modified Accrual
Compliance with US Generally Accepted Accounting Principles (US GAAP)
Resource: or Ask your staff Accountant
Items should not be purchased with CASH.
Financial Reports
General Ledger / Check Register; Profit/Loss Statement; and Balance Sheet
Co-mingled CACFP funds with Agency funds
Method of separation (ie. independent account codes)
Approved allocation plan for shared costs
Types of Accounting Systems:
Cash System: Recognizes revenues and costs when cash is received and bills are paid.
Accrual System: Recognizes revenues and costs when costs are incurred and uses a payable and receivable system.
Modified Accrual System: Certain expenses are reported on an accrual basis.
US GAAP: Rules for the accounting of costs and revenues

30. Accounting System Audits
2014 CACFP Financial Management Summer Training - Centers
Accounting System
Audits
Annual Review of Organizations financials by independent party
A-133 Single Audit Required if expend over $500,000/year in federal dollars (non-profits only)
Single Audit Clearinghouse
Pdf copy required to be uploaded to Online Application – NEW
Less than $500,000 - Annual report/review from independent outside party should be conducted annually.
For-profits: Compliance review by outside accountant
Annual Report of organizations financial condition
Should be completed when federal tax filing is completed.
Good resource:

31. Planning: What you will need
Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures

32. 2014 CACFP Financial Management Summer Training - Centers
Policy and Procedures
Written descriptions that tell the who, what, where and how of each process of organization.
No “required” format.
Understandable to all parties involved.
Check and Balance for organization processes
Training / Turnover in job duties
Used in job evaluation process
Reviewed and updated frequently
Actually followed
CACFP Financial Procedures required
Purchasing; accounting/payment of bills; recordkeeping

33. Participation: On Your Way
Approved Application
Incurring costs (Documentation)
Monthly Reimbursement

34. Participation: On Your Way
Approved Application
Incurring costs (Documentation)
Monthly Reimbursement

35. Participation: On Your Way
Approved Application
Incurring costs (Documentation)
Monthly Reimbursement

36. Cost Documentation Menus Production Records (if applicable)
Receipts/Invoices
Dated detail receipt of actual items purchased or showing where CACFP funds were spent.
Financial Records
Revenue and Expenditure report
General ledger; Journal ledger; checking ledger
Bank statements for account federal funds are deposited
Payroll documentation (timesheets; payroll checks/register; federal time reporting sheets)
Required for all employees funded with federal funds

37. Receipts/Invoices At a Minimum Date of purchase Itemized Description
Quantity
Price
Method of payment
Separate Food/Nonfood/Non-CACFP

38. Organization Weekly Monthly Food Receipts Timesheets Bank Statements
Payroll records
General Ledger
Claim Reimbursement
Receipts by date and vendor
Retain 3 years + Current

39. Participation: On Your Way
Approved Application
Incurring costs (Documentation)
Monthly Reimbursement

40. Remember!
The CACFP funds are replacing funds you are now spending

41. Claims Processing
Claims Processed every Tuesday (next business day if falls on Holiday)
Only one claim per Program per “week”
Can be amended up until process date
Reimbursement received within two weeks from process date (unless Holiday or Federal/State shutdown).

42. Illustration of Claim Payment
Sample Calendar Month
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday 1 2 3 4 5
Claim Submitted (Agency) 6
Claim Process Day (DPI) 7 8
Voucher Date (DPI) 9 10 11 12 13 14 15 16 17 18 19
Check/ACH issued 20 21 22 23 24 25 26 27 29 30 31

43. Reimbursement Amount known when claim processed
Any fiscal action due will automatically be deducted from claim until paid in full
Resources:
Guidance Memo 2 – How reimbursement is calculated
Guidance Memo 3 – Everything want to know about submitting claims

44. Reporting: Compliance
CACFP Financial Reports
CACFP Reviews

45. Reporting: Compliance
CACFP Financial Reports
CACFP Reviews

46. Nonprofit Food Service Financial Report (NPFS)
2014 CACFP Financial Management Summer Training - Centers
Nonprofit Food Service Financial Report (NPFS)
Form PI-1463 (Independent) and PI-1463-A (Sponsors)
Report of all ACTUAL CACFP expenditures incurred during the reporting period.
Costs should equal expenditures charged to food service program plus any additional expenses covered with non-CACFP funds.
Amounts must be supported by actual documentation – NO ESTIMATES
Forms can be found under Guidance Memo 11

47. Nonprofit Food Service Financial Report (NPFS)
CACFP revenue should be reported using the accrual method (as earned, not received).
Additional program income must be reported (e.g. interest income, rebates)
Additional non-program income must be reported
Total Costs less Program income = non-program income
Required for ALL CACFP agencies – even for-profit

48. Nonprofit Food Service Financial Report (NPFS) Due Dates
Independent
Annual Report
Reporting period: October 1 – September 30
Due Date: November 1st
Submit via:
Fax: (608)
Regular Mail
if need extension

49. Nonprofit Food Service Financial Reports (NPFS) Due Dates
Sponsoring Organization
1st Quarter
Reporting period: October 1 – December 31
Due Date: March 1st
2nd Quarter
Reporting period: January 1 – March 31
Due Date: June 1st
3rd Quarter
Reporting period: April 1 – June 30
Due Date: September 1st
4th Quarter
Reporting period: July 1 – September 30
Due Date: December 1st
if need extension
PI-1463-A (front page)

50. Reporting: Compliance
CACFP Financial Reports
CACFP Reviews

51. CACFP Financial Reviews
SA Reviews (DPI)
Announced or Unannounced
Usually occur during a program review
Items to have available:
Support documentation for NPFS for current and last FFY
ALL support documentation for food program costs
Bank statements/cancelled checks for food program funds
General Ledger, allocation plan, P/L reports
Should be able to describe accounting system.
How do you pay your bills?
Where did CACFP funds go?
“It’s at my accountants” – Unacceptable excuse

52. CACFP Financial Reviews
SA Reviews (continued)
Any non-food program/unallowable cost found to be paid with CACFP funds will be disallowed.
May result in repayment to DPI.
CACFP funds exceed CACFP costs = repayment to DPI
Appeal-able Action
MUST BE ORGANIZED
Be able to show and explain your organizations system
USDA Reviews
Monitoring SA as part of Management Evaluation
SA will work with agency on Corrective Action (if needed)

53. Reach Your CACFP Destination
Plan, budget, and organize the funds available will help you to maximize your CACFP reimbursement.
No planning, using funds on non-program needs, no accountability of funds spent will result in loss of funding and/or participation

54. Child and Adult Care Food Program (CACFP) Are You Ready ?
2014 CACFP Financial Management Summer Training - Centers
Wisconsin Department of Public Instruction
Tony Evers, PhD, State Superintendent
April 22, 2014

55. Which are allowable food costs? 
Crab meat
Soda Pop
Rabbit Food
Teacher Meals
Refrigerator
Milk
Beer & Liquor
Personal Groceries
Spices
Bread        

56. Which are allowable nonfood/kitchen supplies?
Dishes
Milk
Cups
Arts/Crafts Supplies
Center garden supplies (min. value) 
Toilet paper
Cooking utensils
Dishwashing detergent
Paper towels used in the classrooms       
Need to be separated from food supplies on receipts.

57. What are some “Other” allowable CACFP expenses?
Food Service labor
Operational Exp.
Admin. Labor
Only CACFP %
Vended Meals
Contracted Service 
Kitchen Equipment
Gas for Vehicles
Only CACFP %
Maintenance/Repairs    
CACFP funds should always be spent on food and kitchen supplies FIRST

58. What items should you retain to support your CACFP costs?
Receipts
Invoices
Payroll (timesheets, paystubs, etc.)
Checkbook/check register
General Ledger
CACFP Claim documentation
Bank Statements
A shoebox or garbage bag
The number to your accountant        
Retained for 4 years (3 yrs plus the current)

59. QUESTIONS

60. Contact Info
Cari Ann Muggenburg, Auditor
Community Nutrition Programs Ph