2. Net cash resources- all monies, that are available to or have accrued to a school food authority’s nonprofit school food service at any given time, less cash payable. Includes: cash on hand cash receivable earnings on investments cash on deposit value of stocks, bonds or other negotiable securities. Includes ala carte, catering, interest earned, etc.

3. Nonprofit school food service account- restricted account in which all of the revenue from all food service operations conducted by the school food authority principally for the benefit of school children is retained and used only for the operation or improvement of the nonprofit school food service. Money is meant only for operation or improvement!

4. Revenue -when applied to nonprofit school food service, means all monies received by or accruing to the nonprofit school food service including, but not limited to: children’s payments Earnings on investments other local revenues State revenues Federal cash reimbursements This means pretty much everything!

5. Direct Costs- Costs incurred for a specific purpose and can be identified with a specific program and are charged directly to the program. i.e. salaries, food, equipment, etc Indirect Costs- Costs that are not easily identified with a specific program as multiple programs benefit from these costs. i.e. payroll clerk, accounting, utility costs, shared maintenance costs, etc. Cost are not always direct or indirect, rather it is the way the sponsor is charging them to the program. i.e. one sponsor charges the entire food service phone bill as an indirect cost to the program while another picks out the long distance calls and assigns them as a direct cost to the program. Costs must also be allowable whether charged indirect or direct!

6. What will we check on the CRE review? Current operating balance of food service fund Food service fund separated from general fund and receiving accrued interest (if applicable) Food service reimbursements deposited to fund in timely manner Printout of food service expenditures YTD to determine if only allowable costs charged to food service fund Anything else deemed necessary Don’t come unpeeled!