1. Child Nutrition Programs AND OCAS CODING
Good Morning. My name is Debbie Hamilton and I am the Director of Training for Child Nutrition Programs at the State Department of Education.
Child Nutrition Programs appreciates being asked to be a part of the OCAS training workshops this spring! Hopefully the information presented to you in the next hour or so will be beneficial!
Janet Barresi
State Superintendent of Public Instruction
Oklahoma State Department of Education

2. Why OCAS CODES CHANGED FOR CHILD NUTRITION
7/17/2019
History of OCAS
Child Nutrition always FEDERAL
Project Codes in 300 Series = State Funds
Project Codes in 700 Series = Federal Funds
Change was made to get it RIGHT!
Child Nutrition and OCAS
When OCAS first came about in the early 1990’s, Child Nutrition was told that all expenditures and revenues from Child Nutrition would be coded to Project Reporting Code No questions were asked and Child Nutrition implemented this code as instructed.
In the Spring of 2011, the OCAS Office came to Child Nutrition and explained that any project codes in the 300 series meant that the funds were STATE funds. OCAS wanted Child Nutrition to agree to code all Child Nutrition funds the correct way—by FEDERAL funds. This meant that the Project Reporting Code for all Child Nutrition funds would change to project reporting codes in the 700 series, except for STATE MATCH funds, which would continue to be coded at 385.
Child Nutrition agreed that the OCAS coding should be done CORRECTLY, so beginning with the 2012 school year (July 1, 2011), the OCAS codes were changed.
These changes came about at the right time because of the FEDERAL TRANSPARENCY ACT and some USDA changes that occurred with the implementation of the Healthy, Hunger-Free Kids Act of Had OCAS not asked for Child Nutrition to change the codes, this would have probably been an eventual AUDIT FINDING for Child Nutrition.

3. PROGRAM CODE 700
7/17/2019
Expenditures and revenues from Child Nutrition are identified to be Program-specific.
Used to calculate district’s Three-Month Operating Balance.
Used to calculate Non-Program Food Report to USDA.
Used for Paid Lunch Equity Tool validation.
Child Nutrition and OCAS
At the time of the change, OCAS suggested having a separate PROGRAM CODE for Child Nutrition. This would help the Child Nutrition office identify ALL expenditures and revenues from Child Nutrition. Program Code 700 is used for the following reports, required by USDA:
Three-Month Operating Balance—Districts are limited in the amount of Child Nutrition funds they can carry-over from one fiscal year to another. PROGRAM CODE 700 is used to identify all the expenditures a school district has for its Child Nutrition Programs. The total expenditures are then divided by 9 (for 9 months) and multiplied by 3 to obtain what an average 3-month operating balance is for that district. Once this number is obtained, it is compared to the OPERATING BALANCE the school district has as of June 30. If the operating balance on hand as of June 30 exceeds the calculated 3-month operating balance, the district is out of compliance and must send the Child Nutrition office something that shows how the excess funds are being spent (on Child Nutrition of course!)
Non-Program Food Report—This is a new report resulting from the implementation of the Healthy, Hunger-Free Kids Act of USDA wants to ensure that school districts are spending their Child Nutrition reimbursements for only STUDENT reimbursable meals. Therefore, this report (using OCAS codes) will show if a district is not charging enough money to cover the cost of any meals that are not STUDENT meals. This includes ADULT meals, CONTRACT meals, A LA CARTE items, CATERING, and any other food/beverages purchased using Child Nutrition funds, that are not STUDENT meals.
Paid Lunch Equity Validation—This is another report resulting from the implementation of the Healthy, Hunger-Free Kids Act of Paid Lunch Equity requires school districts to charge students who do not qualify for free/reduced-price lunch benefits at least the difference between the FREE reimbursement rate and the PAID reimbursement rate. That means for the 2013 school year, districts should be charging their PAYING STUDENTS at least $2.59 or $2.61, depending on if the district is paid the additional 2 cents per lunch meal or not. If a district chooses to charge its paying students LESS THAN THIS AMOUNT, the district must state that its Child Nutrition funds will be subsidized by some other fund. PROGRAM CODE 700 is used to identify the subsidized amount needed.

4. PROJECT REPORTING CODES
7/17/2019
763 = National School Lunch Program
764 = School Breakfast Program
765 = Special Milk Program
766 = Summer Food Service Program
768 = Fresh Fruit/Vegetable Program
769 = Child and Adult Care Food Program
Child Nutrition and OCAS
Because each Child Nutrition Program has its own CFDA #, which stands for CATELOG OF FEDERAL DOMESTIC ASSISTANCE—a Federal government term—each Child Nutrition Program had to have its own Project Reporting Code. Here is a list of each Child Nutrition Program, along with its own Project Reporting Code #.
Because the National School Lunch Program‘s CFDA # also includes the After School Snack Program and the Seamless Summer Option, you will not see these programs listed separately. The CFDA # for these two programs is the same CFDA # as for the National School Lunch Program.
DISCUSS HANDOUT: Child Nutrition Oklahoma Cost Accounting Codes. Please look at the handout of all the OCAS codes related to Child Nutrition Programs. First you will see Fund 22, Fund 11, and Fund 60, all under Program Code Next you will see that there are two columns that go down the page. The first column represents REVENUES and the second column represents EXPENDITURES. Then you will see that the fist boxes going across represent FEDERAL revenues and expenditures, the next two boxes going across represent STATE revenues and expenditures, and the last two boxes going across represents LOCAL revenues and expenditures.

5. PROBLEMS WITH PROJECT REPORTING CODES in 700 SERIES
7/17/2019
700 Series = FEDERAL FUNDS = Teacher Retirement Match
Breaking down ONE invoice for all costs
Child Nutrition and OCAS
As with any new change, when the new OCAS codes were implemented, there were a few problems to overcome:
As you know, any project reporting code in the 700 series represents payment of FEDERAL funds. Therefore, if there were any salaries paid from one of these project reporting codes for employees that were members of the Teacher Retirement System, then a Teacher Retirement MATCH had to be paid. This was causing a lot of schools to spend more Child Nutrition funds on labor. There are two things to keep in mind about this issue:
This Teacher Retirement Match should have always been paid for Child Nutrition employees whose salaries were paid out of FEDERAL Child Nutrition funds because Child Nutrition Programs are FEDERAL programs. This is a legitimate expense for Child Nutrition.
Schools can use OTHER Child Nutrition funds to pay employees’ salaries who are members of Teacher Retirement, such as LOCAL COLLECTIONS OR STATE MATCH funds.
The second problem occurred because all expenses for Child Nutrition are usually on one invoice. In other words, a school district buys food and beverages for Breakfast, Lunch, Snacks, A la Carte items, Catering, etc. all at the same time, all on the same invoice. So how does a district break down how much was spent for EACH of the different programs, each identified with its own Project Reporting Code?
Don’t panic! OCAS recognizes this issue and has said that EXTIMATING these amounts by program/project reporting code can be done.
The best way to identify expenses specific to each program/project reporting code is to cost out your meals. This is just good a recordkeeping/accounting practice that will keep your Child Nutrition Programs in check.
If costing out each meal is too much, the Child Nutrition office has developed a help tool for districts to use.
DISCUSS HANDOUT: CHILD NUTRITION OCAS CODING FOR EXPENDITURES. This tool can be obtained by contacting Judy or Becky in our Child Nutrition office. They can you the electronic version so no calculations on your part are required. This is just a tool for districts to use until they can get a good idea about how their expenditures should be divided.

6. Child Nutrition / OCAS Questions ???
7/17/2019
Child Nutrition Programs
Child Nutrition and OCAS
I think you can now understand why all of this Child Nutrition OCAS reporting is so important!! We know it is challenging; however, please know we are here to help you! Please call us any time at the number on this slide! Are there any questions??