Presentation on theme: "Funding your CACFP Adventure: CACFP Financial Management"— Presentation transcript:
1Funding your CACFP Adventure: CACFP Financial Management 2014 CACFP Financial Management Summer Training - CentersFunding your CACFP Adventure: CACFP Financial ManagementSponsors and IndependentChild and Adult Care CentersCACFP Summer ConferenceMay 21, 2014
2Map of CACP Financial Management Budget and PlanAccounting System and RecordkeepingIncur Food Program CostsTrack Food Program Costs & Retain documentationSubmit Reimbursement ClaimReimbursement ReceivedReport to DPI (Annually/QuarterlyReview and Success
3CACFP Map KeyAgency: 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.
4CACFP Map KeyDepartment 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
5Child and Adult Care Food Program 2014 CACFP Financial Management Summer Training - CentersChild and Adult Care Food ProgramIS NOT“Free” moneyFunding for personal expensesTo purchase soda/coffee for teachers, non-healthy and/or not enough food and snacks for participantsEntitlement ProgramFor the disorganizedISFederally FundedPassed through DPIa FOOD ProgramHealthy meals to eligible participantsOptional ProgramExcept in Head StartHeavily AdministeredDetailed program requirements.To ensure you have the right map…
6Planning: What you will need Project ReimbursementProject Expenditures (Budget)Bank Account in the Agency NameAccounting SystemWritten Policy and Procedures
7Planning: What you will need Project ReimbursementProject Expenditures (Budget)Bank Account in the Agency NameAccounting SystemWritten Policy and Procedures
8CACFP Reimbursement CACFP Reimbursement is based upon: Number of meals approved to claimEligibility of the enrolled participantsThe funds you receive will not cover all of your allowable FP costs.
9Other Source of Income CACFP is part of your overall organization. 2014 CACFP Financial Management Summer Training - CentersOther Source of IncomeCACFP 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 DonationsFood Stamps is not another source of income for the center.Report projected Source and Amount on Budget
10Resources Available Guidance Memorandum #2 Reimbursement Calculation WorksheetChild Care:Adult Care:
11Planning: What you will need Project ReimbursementProject Expenditures (Budget)Bank Account in the Agency NameAccounting SystemWritten Policy and Procedures
12CACFP BUDGET Projection – “Road Map” of Upcoming Program Year 2014 CACFP Financial Management Summer Training - CentersCACFP BUDGETProjection – “Road Map” of Upcoming Program YearCosts must be Allowable, Reasonable, in accordance to FNS InstructionAll Revenue Available to fund CACFPBudget Summary submitted with online applicationFigures Updated every year.Detailed Budget (Attachment G) for SponsorsRequired every three years – uploaded to online application – NEW FFY2015All Revenue Available:CACFP Meal ReimbursementCACFP Cash-in-lieu reimbursementInterest earned on CACFP funds and/or other FS income“Other” Non-CACFP IncomeUnfunded/Unallowable CostsSA OverclaimsInterruption in Program PaymentsEx. Child Care Fees, Tuition, Headstart, W-2, Donations
14Frequent Allowable CACFP Costs (list is not all inclusive) Food (consumable)Kitchen Supplies/NonfoodContract / Vended MealsFood Program PersonnelAdmin & Operational# of CACFP hours must be trackedEmployee CACFP Travele.g. Grocery shopping, DPI trainingAudit ServicesCACFP PortionEquipment Purchase/Rental
15Food CostsCosts 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 participantsShould be at least 40-50% of budgetFor healthy, reimbursable meals at least ½ of reimbursement on food costs.
16Food SuppliesConsumable 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.
17Food Vendors / FSMC Outside food service, not related to agency. Contract approved with DPIProvide all CACFP components.Report as Contracted Services on CACFP Budget and Financial ReportIndependent: Report as “Other” cost and specify.
18Food Service LaborAll wages, salaries, employee benefits, and the share of the employee taxes paid by the agency.
19Operational Food Service Labor Menu planningProduction RecordsFood purchasingCookingServing the foodCleaning-up after the mealMeal Attendance
20Food Service Labor is also… Time spent completing required recordsHSIR and HSISMonthly claimFinancial reportsSupervision of day-to-day food service operationsThese are Administrative costs
21Administrative CostsSponsors: 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%.
22Administrative CostsCACFP 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.
23Frequent Unallowable CACFP Costs (lists are not all inclusive) Bad Debts, Fines, PenaltiesNon food program food costsCoffee, non-CACFP personnel meals (i.e. driver, maintenance, non-employee/family member)Entertainment“Family Night”, catering costsPurchase of food/supplies for personal useMoney received must be kept in food program account. Must have strict internal policy.Undocumented Expensesi.e. “Payroll” for Owner with no documentation worked in Program
24Resources for Allowable/Unallowable Costs Guidance Memorandum #11Summary of CACFP Allowable CostsUser friendly, searchable, Excel referenceChild Care:Adult Care:FNS Instruction (rev. 4)Electronic copy available on our website atDerived from OMB Circulars and Federal Regulations for Financial Management for federal funding.CACFP Budget
25Planning: What you will need Project ReimbursementProject Expenditures (Budget)Bank Account in the Agency NameAccounting SystemWritten Policy and Procedures
26Bank Accounts ACH Payments Must be in agency’s legal name https://apps.dpi.wi.gov/AidsBanking/loginMust be in agency’s legal nameW-9 verified by DPIMust have two people responsibleReimbursement will no longer be issued via checkNotify DPI immediately with changes
27Planning: What you will need Project ReimbursementProject Expenditures (Budget)Bank Account in the Agency NameAccounting SystemWritten Policy and Procedures
28* Information per US GAAP 2014 CACFP Financial Management Summer Training - CentersAccounting SystemsAcceptableCenter credit cardCenter checking accountCharge Account at local storeInvoice or CODFood delivery vendorUnacceptableCashIncluding cash-backThird party checksFood Stamps* Information per US GAAP
29Accounting System Financial Reports 2014 CACFP Financial Management Summer Training - CentersAccounting SystemMethod of tracking expenses and revenue in your organizationCash/Accrual/Modified AccrualCompliance with US Generally Accepted Accounting Principles (US GAAP)Resource: or Ask your staff AccountantItems should not be purchased with CASH.Financial ReportsGeneral Ledger / Check Register; Profit/Loss Statement; and Balance SheetCo-mingled CACFP funds with Agency fundsMethod of separation (ie. independent account codes)Approved allocation plan for shared costsTypes 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
30Accounting System Audits 2014 CACFP Financial Management Summer Training - CentersAccounting SystemAuditsAnnual Review of Organizations financials by independent partyA-133 Single Audit Required if expend over $500,000/year in federal dollars (non-profits only)Single Audit ClearinghousePdf copy required to be uploaded to Online Application – NEWLess than $500,000 - Annual report/review from independent outside party should be conducted annually.For-profits: Compliance review by outside accountantAnnual Report of organizations financial conditionShould be completed when federal tax filing is completed.Good resource:
31Planning: What you will need Project ReimbursementProject Expenditures (Budget)Bank Account in the Agency NameAccounting SystemWritten Policy and Procedures
322014 CACFP Financial Management Summer Training - Centers Policy and ProceduresWritten 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 processesTraining / Turnover in job dutiesUsed in job evaluation processReviewed and updated frequentlyActually followedCACFP Financial Procedures requiredPurchasing; accounting/payment of bills; recordkeeping
33Participation: On Your Way Approved ApplicationIncurring costs (Documentation)Monthly Reimbursement
34Participation: On Your Way Approved ApplicationIncurring costs (Documentation)Monthly Reimbursement
35Participation: On Your Way Approved ApplicationIncurring costs (Documentation)Monthly Reimbursement
36Cost Documentation Menus Production Records (if applicable) Receipts/InvoicesDated detail receipt of actual items purchased or showing where CACFP funds were spent.Financial RecordsRevenue and Expenditure reportGeneral ledger; Journal ledger; checking ledgerBank statements for account federal funds are depositedPayroll documentation (timesheets; payroll checks/register; federal time reporting sheets)Required for all employees funded with federal funds
37Receipts/Invoices At a Minimum Date of purchase Itemized Description QuantityPriceMethod of paymentSeparate Food/Nonfood/Non-CACFP
38Organization Weekly Monthly Food Receipts Timesheets Bank Statements Payroll recordsGeneral LedgerClaim ReimbursementReceipts by date and vendorRetain 3 years + Current
39Participation: On Your Way Approved ApplicationIncurring costs (Documentation)Monthly Reimbursement
40Remember!The CACFP funds are replacing funds you are now spending
41Claims ProcessingClaims Processed every Tuesday (next business day if falls on Holiday)Only one claim per Program per “week”Can be amended up until process dateReimbursement received within two weeks from process date (unless Holiday or Federal/State shutdown).
42Illustration of Claim Payment Sample Calendar MonthSundayMondayTuesdayWednesdayThursdayFridaySaturday12345Claim Submitted (Agency)6Claim Process Day (DPI)78Voucher Date (DPI)910111213141516171819Check/ACH issued2021222324252627293031
43Reimbursement Amount known when claim processed Any fiscal action due will automatically be deducted from claim until paid in fullResources:Guidance Memo 2 – How reimbursement is calculatedGuidance Memo 3 – Everything want to know about submitting claims
46Nonprofit Food Service Financial Report (NPFS) 2014 CACFP Financial Management Summer Training - CentersNonprofit 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 ESTIMATESForms can be found under Guidance Memo 11
47Nonprofit 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 reportedTotal Costs less Program income = non-program incomeRequired for ALL CACFP agencies – even for-profit
48Nonprofit Food Service Financial Report (NPFS) Due Dates IndependentAnnual ReportReporting period: October 1 – September 30Due Date: November 1stSubmit via:Fax: (608)Regular Mailif need extension
49Nonprofit Food Service Financial Reports (NPFS) Due Dates Sponsoring Organization1st QuarterReporting period: October 1 – December 31Due Date: March 1st2nd QuarterReporting period: January 1 – March 31Due Date: June 1st3rd QuarterReporting period: April 1 – June 30Due Date: September 1st4th QuarterReporting period: July 1 – September 30Due Date: December 1stif need extensionPI-1463-A (front page)
51CACFP Financial Reviews SA Reviews (DPI)Announced or UnannouncedUsually occur during a program reviewItems to have available:Support documentation for NPFS for current and last FFYALL support documentation for food program costsBank statements/cancelled checks for food program fundsGeneral Ledger, allocation plan, P/L reportsShould be able to describe accounting system.How do you pay your bills?Where did CACFP funds go?“It’s at my accountants” – Unacceptable excuse
52CACFP 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 DPIAppeal-able ActionMUST BE ORGANIZEDBe able to show and explain your organizations systemUSDA ReviewsMonitoring SA as part of Management EvaluationSA will work with agency on Corrective Action (if needed)
53Reach 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
54Child and Adult Care Food Program (CACFP) Are You Ready ? 2014 CACFP Financial Management Summer Training - CentersWisconsin Department of Public InstructionTony Evers, PhD, State SuperintendentApril 22, 2014
56Which are allowable nonfood/kitchen supplies? DishesMilkCupsArts/Crafts SuppliesCenter garden supplies (min. value)Toilet paperCooking utensilsDishwashing detergentPaper towels used in the classroomsNeed to be separated from food supplies on receipts.
57What are some “Other” allowable CACFP expenses? Food Service laborOperational Exp.Admin. LaborOnly CACFP %Vended MealsContracted ServiceKitchen EquipmentGas for VehiclesOnly CACFP %Maintenance/RepairsCACFP funds should always be spent on food and kitchen supplies FIRST
58What items should you retain to support your CACFP costs? ReceiptsInvoicesPayroll (timesheets, paystubs, etc.)Checkbook/check registerGeneral LedgerCACFP Claim documentationBank StatementsA shoebox or garbage bagThe number to your accountantRetained for 4 years (3 yrs plus the current)