FINANCIAL MANAGEMENT

Fall 2014 NA Training©MDE – Rodney Miller 2 Session Topics

Maintenance of Records P&P ©MDE – Rodney Miller 3 Records must be kept on file by the SFA for at least __________ years after the close of the fiscal year to which they pertain. 3 Years Plus the Current Fall 2014 NA Training

Required Records ©MDE – Rodney Miller 4 Participation Records Claims Review Process Records Financial Records Required Planning and Production Records Other pertinent information as necessary –Personnel Records –Board Minutes Fall 2014 NA Training

Program Funds and Use of Funds P&P ©MDE – Rodney Miller 5 Revenue from the nonprofit school food service can only be used for the operation or improvement of the Child Nutrition Program. Fall 2014 NA Training

Program Funds and Use of Funds P&P ©MDE – Rodney Miller 6 CHILD NUTRITION PROGRAM FUNDS CANNOT BE USED FOR: –Bad Debts –Fines and Penalties –Interest and Financial Costs –Direct labor costs for administrative personnel that do not have direct program responsibility –Legislative expense or executive direction –Capital Expenditure Fall 2014 NA Training

Fund Balance/ Net Cash Resource P&P11-20 ©MDE – Rodney Miller 7 State Agency required to monitor your fund balance –Cannot exceed three months’ average expenditure If there is an excess balance, the State Agency will require the SFA to take action to reduce the excess balance Fall 2014 NA Training

Claims Review Process (Edit Checks) P&P Manual 8-19 to 8-25 Fall 2014 NA Training©MDE – Rodney Miller 8 When must the Claims Review Process be completed? M onthly prior to the submission of a monthly claim for reimbursement Prior to claim submission: –Each school’s daily count must be compared to attendance adjusted eligibles and total eligible students by category –If the counts are determined to be valid, documentation must be maintained to support the claim

Edit Checks Fall 2014 NA Training ©MDE – Rodney Miller 9 All potential overclaims must be resolved before submitting the claim. The SFSA must: –Investigate the overclaim Check absentee reports

Loaning of School Foodservice Funds P&P Manual & ©MDE – Rodney Miller 10 Such loans may be made only when the following conditions apply: Food service must be “fully funded” P rior approval must be granted Specific guidelines must be followed – Competitive interest rate –Short duration No more than one year within the same fiscal year Fall 2014 NA Training

In-Kind” Meals P&P Manual 3-16 ©MDE – Rodney Miller 11 Food Service personnel who are responsible for preparing, serving, and operating kitchen equipment All other Adult Meals are NOT allowable as in- kind The adult or district is required to pay for any ineligible “in-kind” meals Fall 2014 NA Training

©MDE – Rodney Miller 12 Revenue Contracts P&P Manual There should be a written agreement in place for all Revenue Contracts; –The services to be provided –The price to be charged –The person who will be responsible for paying. Fall 2014 NA Training

©MDE – Rodney Miller 13 Revenue Contracts P&P All costs must be recovered when providing contract meals or meals for special functions. Food Service may not incur a loss for either special functions or contract meals. Fall 2014 NA Training

Special Functions P&P Manual ©MDE – Rodney Miller 14 Food services provided to school groups outside the regular breakfast and lunch programs Food Service must charge for all meals prepared, even if fewer are served/consumed. Fall 2014 NA Training

Special Function Documentation ©MDE – Rodney Miller 15 Copy of the menu Number of meals prepared Detailed Cost analysis – Include all items (food, paper goods, etc.) – Add an amount or percentage to recover costs for non-measurable items used (spices, production supplies) Fall 2014 NA Training

Special Function Documentation cont. ©MDE – Rodney Miller 16 Billing invoice Deposit slip and transaction documentation Administrative expense Fall 2014 NA Training

Meals sold to another school or a Head Start program Unlike special functions, usually the same menus are as served Contract Meals ©MDE – Rodney Miller 17 Fall 2014 NA Training

Contract Meal Documentation ©MDE – Rodney Miller 18 Comparison of the cost of the meal vs. meal charge Number of meals delivered/served daily Billing documentation Payment receipts/ deposits Fall 2014 NA Training

OCeaN Information ©MDE – Rodney Miller 19 Report Revenues for Special Function Meals and Contract Meals under “Special Functions” on your Financial Statement. Report all Special Function and Contract meals as “Other Non-Reimbursable Meals” on the Monthly Claim for Reimbursement Fall 2014 NA Training

Meal charges for paid students must be set by the school district and approved by the board –Required Reduced Reduced breakfast, $.30 Reduced lunch, $.40 SY 14-15, Adult Meal Charges –Lunch: $3.00 –Breakfast: $1.80 Meal Prices P&P Manual 3-13 & 3-14 ©MDE – Rodney Miller 22 Fall 2014 NA Training

Adult meals must be priced to cover the total cost –Same portion as high school students are served to adults (P&P page 3-14) Any adult loss incurred must be paid back to Child Nutrition from another funding source other than Food Service Meal Prices cont. ©MDE – Rodney Miller 23 Fall 2014 NA Training

On-Site School Reviews P&P Manual & ©MDE – Rodney Miller 24 When must the on-site review be completed? By February 1 st of each school year For all feeding sites, including satellites May add questions to review, such as: –H–HACCP –S–Sanitation –T–Time students spend in line –A–Appearance/ flow of serving line Fall 2014 NA Training

©MDE – Rodney Miller 25 Fall 2014 NA Training