FINANCIAL MANAGEMENT

Fall 2014 NA Training ©MDE – Rodney Miller 2

Session Topics

Maintenance of Records P&P 11-14

©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 3 Years Plus the Plus the CurrentCurrent

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 FundsP&P 11-18

©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 FundsP&P 11-18

©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? • Monthly 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 11-20 & 11-21

©MDE – Rodney Miller 10

Such loans may be made only when the following conditions apply:

• Food service must be “fully funded”• Prior approval must be granted• Specific guidelines must be followed

– Competitive interest rate– Short duration

• No more than one year within the same

fiscal yearFall 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 11-28

• 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 ContractsP&P 11-28

• 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 FunctionsP&P Manual 11-28

©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 17Fall 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 PricesP&P Manual 3-13 & 3-14

©MDE – Rodney Miller 22Fall 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 23Fall 2014 NA Training

On-Site School Reviews P&P Manual 14-10 & 14-11

©MDE – Rodney Miller 24

• When must the on-site review be completed?

By February 1st of each school year• For all feeding sites, including satellites• May add questions to review, such as:

– HACCP– Sanitation– Time students spend in line– Appearance/ flow of serving line

Fall 2014 NA Training

©MDE – Rodney Miller 25Fall 2014 NA Training