Facts and Tips for Completing the Budget (Sponsored Center CAC 9A)

Transcription

1 Facts and Tips for Completing the Budget (Sponsored Center CAC 9A) The Sponsored Center budget is completed first because this budget is what the sponsoring organization must collect from each of their sponsored centers before the sponsor can begin to put their own budget together. Both affiliated and unaffiliated are required to submit sponsored center budgets. Read the Facts and Tips for Completing the Budget: Budget Tool must be saved to your Documents before you begin completing the budget. Each Unaffiliated Center must complete and submit a Budget for Sponsored Centers. A sponsoring organization should prepare either a separate Budget for Sponsored Centers for each affiliated center or combine costs for all affiliated centers into one Budget for Sponsored Centers. A Budget for Sponsored Centers is required to be submitted. The CACFP is to be operated as a "Non-Profit" program. This means that you must spend all of the funds you receive as reimbursement on allowable, necessary, and reasonable expenses. All of the expenditures must be included and approved in your current budget. You are allowed to have up to three months of operating balance remaining, however this is a cumulative amount from year to year. All expenditures from sponsored centers budgets will be consolidated to create the Sponsoring Organization Center s Budget. Operating Expenses will be carried to Worksheet P: Sponsored Centers Operating Costs. Each Line item on the Budget has its own Worksheet. If you expect to have expenses relating to any line item, a worksheet must be completed. If you complete the budget and the appropriate worksheets electronically, the totals from each worksheet will populate the budget. If you complete the budget and worksheets manually, the totals from the worksheets must be carried to the Budget page and inserted in the appropriate columns.

2 Facts and Tips for Completing the Budget (Sponsored Center CAC 9A) For budgets completed manually, from each worksheet, carry the "Total Annual Expense" to the corresponding Line item, first column on the Budget page, "Total Annual Expense". For example, if the "Total Equipment Expense for CACFP" per Worksheet F is $10, then $10 is entered in the first column under Line 7.b.(iii) for Equipment. From each worksheet completed, carry the "Annual Cost Paid by CACFP Funds" to the corresponding Line item, second column on the Budget page, "CACFP Funded". For example, if the "Annual Cost Paid by CACFP Funds" per Worksheet F is $10, then $10 is entered in the second column under Line 7.b.(iii) for Equipment. "Other Funding" is the difference between "Total Annual Expense" and "CACFP Funded" (A - B =C). Submit all completed Worksheets with the Budget. If you do not use a Worksheet, it does not have to be submitted with the budget. Only if CACFP funds are being used to pay for these items will you submit leases, contracts, insurance policies and any other supporting documentation with the budget. Include Specific Prior Written Approval Form for each item requiring such approval. Submit either Worksheet A or Worksheet B for your Projected Reimbursement for the program year. Ensure that the computations you use are the meal reimbursement and do not include Cash In Lieu reimbursement. Sponsored Centers are allowed to claim administrative expenses. The total administrative expenses for Sponsoring Organization and the center should be no more than 15% of the budgeted meal reimbursement. Double check your math and consider having a second party review your work.

3 Sponsored Center s Profile This form asks for Projected annual income, projected CACFP Administrative Expenditures, and CACFP Operating expenditures Enter Sponsor Name Enter Facility Name Enter Agreement Number The rest of this sheet will populate as each Worksheet is completed.

4 Worksheet A: Projected Reimbursement Based on Approximated IEAs and Meals The Institution may use either Worksheet A or Worksheet B to determine the projected Annual Income from CACFP reimbursement. Month/Year: If the Institution is preparing the budget in August, they should use figures from the preceding month of July. First, the Income Eligibility Categories (Free, Reduced and Paid) are entered for Enrolled Participants. Line 3: Totals for Breakfasts served are entered. Totals for Lunches/Suppers are entered. (Note: Line 8: Cash in Lieu is automatically populated.) Totals for Snacks are entered. Line 10: Indicates how many months the Institution expects to operate in the next year. We do have some institutions that are only open during the school calendar time period. Most should enter 12 for the 12 months. Finally, the worksheet automatically calculates monthly and annual reimbursements. Worksheet A results are populated on Line 4a.

5 Worksheet B: Projected Reimbursement Based on Previous Year s Claims The Institution may use Worksheet B instead of Worksheet A to determine the institution s projected reimbursement for the coming year using the Amount of Reimbursement per NC Cares for Previous Year. Amount of Reimbursement from CACFP from Previous year per NC Cares are entered. (Cash in Lieu is not included in reimbursement.) Number of Months This Represents is entered. Average Monthly Reimbursement (Column 1 divided by Column 2- Automatically populated.) Number of Months Expected to Participate in This Year is entered. Column 3 is multiplied by Column 4 (Automatically populated.) Any Projected Percentage Increase and Decrease in Reimbursement based on enrollment or meals served for this year are entered. Explanation must be provided. Projected CACFP Annual Reimbursement is calculated and automatically populated. The Institution should provide documentation reflecting the CACFP reimbursement from NC Cares year to date totals. Worksheet B results are populated on Line 4b.

6 Worksheet C: Other Income Available for CACFP Operations Sponsored centers do not need to report other income available to cover CACFP expenses, so this sheet would be left blank.

7 Worksheet D: Sponsor Fee Calculation The Amount of Projected CACFP Meal Reimbursement the Institution expects to receive is entered using the total from Line 4(a) OR 4(b), whichever is the largest of the Budget Page. The Amount of Projected Cash in Lieu is entered using the figure on the recap budget page. Both Worksheets should not be used, only one of the Worksheet results represents an expected reimbursement. The Projected CACFP Meal Reimbursement is based on the meal (food) reimbursement and does not include any cash in lieu funds. The percentage in Column #2 is the percentage that the Sponsoring Organization will retain as an administrative fee (Sponsor fee). By regulation, this figure may be equal to or less than 15% of the expected reimbursement. The amount of Cash in Lieu received from the previous year is entered. This figure remains constant and 1 is entered in Column #2. This amount appears in Column #3 appears in Line 7a on the budget recap sheet.

8 Worksheets E: Administrative Labor Administrative Labor is the cost of the person administering the CACFP including duties such as evaluating the Income Eligibility Applications, preparing the CACFP claim, providing training, and other duties. Even if the Institution does not plan to use CACFP funds for these expenditures, we require that they reflect the costs in their budget. The worksheet asks for the following: Employee Name This is the person performing the administrative duties related to CACFP. Duties These are the CACFP classification of duties. Administrative, Accounting, Monitoring and Training. The time spent in each duty should be reflected by a percentage. Gross Monthly Wages Amount of wages for the month. Total Hours Worked Per Month The total hours cannot exceed for a month. Total Hours for CACFP The number of hours this employee performs CACFP duties. Percent of Total Hours Worked for CACFP Electronically, the spreadsheet will automatically populate this, but if the Institution completes manually the Total Hours for CACFP are divided by the Total Hours Worked per Month. Total Required Employer Taxes This is the matching FICA that employer s pay for their employees and any unemployment taxes. Total Required Employer Taxes to CACFP This is the amount of the total taxes multiplied by the percentage relating to CACFP from Column 5. (Automatically populated.) Monthly Cost for CACFP This is the total CACFP cost for the month which includes the labor attributed to CACFP from Column 2 times Column 5 plus the amount computed in Column 7. (Automatically populated.) Total Annual Food Service Expense Amount of the Monthly Cost for CACFP multiplied by 12 months for an annual amount. (Automatically populated.) Total Applied CACFP Funds The Institution must determine how much of the annual cost for CACFP will be paid for with CACFP funds or if other funds will be used. This amount cannot exceed the Total Annual Food Service Expense. All costs must be allowable; however it is up to each business owner to determine how they plan to spend their CACFP reimbursement. Specific Prior Written Approval is required if any of the administrative employees are also a member of the nonprofit institution, a trustee, director, associate, officer or the immediate family. This only required if CACFP funds are being used for that employee s salary.

9 Worksheets F: Administrative Fringe Benefits This worksheet is used to reflect any benefits paid to employees with CACFP duties and responsibilities. Benefits include health insurance, dental insurance, life insurance and/or retirement. The Institution should provide documentation of benefits package. (Compensation Plan) Employee Name The electronic version of the spreadsheet will carry over the names of the employees listed on Worksheet D. Type of Benefit The type of benefits are listed by the letters. If other is selected, the Institution must identify it. Total Cost per Month The total cost for these benefits per month. Percentage Attributed to Food Service This percentage is the amount computed based on the time spent on CAFFP from Worksheet D. (Automatically populated.) Percentage Paid by Employee and/or paid by other programs This percentage added to the Percentage Attributed to Food Service should equal 100%. Total Monthly Amount Attributed to Food Service This is the amount computed from Column 3 multiplied by Column 4. Annual Expense for CACFP Operations- This is the amount computed from Column 6 multiplied 12 months. Annual Applied CACFP Funds The Institution must determine how much of the annual cost will be paid for with CACFP funds or if other funds will be used. This amount cannot exceed Annual Expense for CACFP Operations. These costs require the General Approval in the budget.

10 Worksheets G: Administrative Equipment (Direct Expense) This Worksheet list any equipment purchases that will be made in the upcoming fiscal year that will be directly expensed. This cost item is found in FNS Instruction 796-2, Rev. 4 under the cost item #16 entitled Expensing of Equipment Purchases and Other Capital Expenditures. The Institution must follow Federal procurement guidelines, which requires a minimum of three informal quotes for each item. Examples: Leased or rented equipment, Laptops. If the center wants to use CACFP money towards an expected purchase, Specific Prior Written Approval must be obtained first before the purchase is made. Type of Equipment List of equipment that will be purchased. Total Annual Cost Cost of the Item. Percent Allocated to CACFP A cost allocation method must be used to determine the amount to be attributed to CACFP. This method must be submitted with the worksheet if CACFP funds are going to be used for the cost. Total Equipment Expense for Food Service This is the total cost of the item times the percentage attributed to CACFP. (Automatically populated.) Annual Applied CACFP Funds The Institution must determine how much CACFP funds will be used for the purchase of this item. If they are using CACFP funds, then Specific Prior Written Approval is needed and three informal quotes. Less Than Arm s Length Transaction (Yes / No) Less Than Arm s Length transaction is one under which one party to the transaction is able to control or substantially influence the actions of the other(s). These transactions must be disclosed and justification provided. All less-thanarms-length transactions require Specific Prior Written Approval.

11 Worksheets H: Administrative Equipment (Depreciation) This cost item is listed in FNS Instruction Rev. 4 under the cost item #13 entitled Depreciation and Use Allowance. Depreciation and use allowances are means of allocating the cost of fixed assets to periods benefiting from asset use. The depreciation method used for the program should be consistent with the method used by the institution for its other federal sponsored and non-federal sponsored activities. The Institution must ensure compliance with Federal procurement guidelines. Type of Equipment Generally these are large ticket items such as a copier. Items that are defined by the IRS as needing to be depreciated. Purchased Date This is the date the item was purchased in the past or the expected date of purchase within this program year. Depreciation Method An acceptable accounting method of depreciation would be straight-line/5 year, double declining, or any other method approved by the IRS (Internal Revenue Service). Total Original Cost Cost of the item. Percent Allocated to CACFP - A cost allocation method must be used to determine the amount to be attributed to CACFP. This method must be submitted with the worksheet if CACFP funds are going to be used for the cost. Total Annual Depreciation Expense for Food Service - Computation of Total Original Cost times the Percent Allocated to CACFP calculated by the depreciation method. Example: $5,000 divided by 5 for Straight Line depreciation = $1,000, then multiply by 10% = $100 Annual Applied CACFP Funds Determine if CACFP funds are to be used for this purchase or was used in the past and the depreciation cost for the prior year is being accounted for this year. If CACFP funds are used, the Institution must submit the depreciation schedule if it was a prior year purchase. If the Institution is planning to make the purchase in this year and use CACFP funds, they must submit three quotes for the item, the cost allocation plan, and a request for Specific Prior Written Approval. Less Than Arm s Length Transaction (Yes / No) Less Than Arm s Length transaction is one under which one party to the transaction is able to control or substantially influence the action of the other(s). These transactions must be disclosed and justification provided. All less-than-arms-length transactions require Specific Prior Written Approval.

12 Worksheets I: General Office Supplies This cost item is for durable supplies that do not meet the definition of equipment. This includes the items such as copy paper, toner, and postage. Item List of common items is provided however these items may not always be used and there are spaces for other types of office supplies if the Institution does incur the cost for CACFP purposes. Total Annual Cost The cost expected for the item for a year. Percentage Allocated to Food Service A cost allocation plan will need to be used if the items are not used 100% by CACFP. The cost allocation plan will also have to be submitted with the budget. For example, one method to determine the cost allocation for copy paper would be to know that one ream of paper out of a box of twelve is used for CACFP, so the cost allocation would be 1/12 = 8.33%. Total Annual Expense for CACFP Food Service The annual cost of the items multiplied by the Percentage Allocated to Food Service. Example: $100 x 8.33% = $8.33 for the annual cost for copy paper. (Automatically populated.) Annual Applied CACFP Funds The Institution must determine how much CACFP funds will be used for this cost. These items require the General Approval in the budget.

13 Worksheets J: Administrative Travel These expenses are involved in administering the CACFP such as travel for training or CACFP conferences. Rate - The Federal rate for travel is acceptable. At this time that rate is 0.56 cents per mile. The Institution can use up to this amount, not more. Employee Name Indicate the Travel Purpose and Location Example: Training / Charlotte Total Number of Miles Look for reasonable estimated Total Miles per Month. Monthly Average Cost - This number will compute by multiplying the number of miles by the rate. (Automatically populated) Transportation Costs - This column would be used to reflect any costs that are incurred other than those reimbursed by the flat mileage rate. Such as a rental car and gas costs. Meals and Lodging This column would be for costs involved in traveling overnight for CACFP purposes. Example: Training in Charlotte, involves an overnight stay and a per diem is paid to the person attending the training. Hotel = $65 + Per Diem for food = $40 totals $105 Number of Months for Food Service The Institution must determine how many months during the fiscal year that traveling is going to occur. Example: 1 month for training in Charlotte. Average Annual Costs This is computed based on the costs in Columns 4, 5 and 6 multiplied by the Number of Months for Food Service from Column 7. (Automatically populated) Example: ($56 + $105) x 1 = $161 Percentage Allocated to Food Service If the travel is completely related to CACFP this would be 100% but if there are other reasons for the travel, it would need to be cost allocated. This method of cost allocation will have to be submitted with the budget. Total Annual Expense for Food Service Operation - This is taking into consideration if the travel is cost allocated and the amount in this column is computed by multiplying Column 8 by Column 9. Example: $161 x 100% = $161 Annual Applied CACFP Funds The Institution must determine if CACFP funds will be used to pay for these expenses. The Institution must submit any contracts involved if rental cars are used. These costs require General Approval in the budget.

14 Worksheets K: Administrative Training This worksheet is used to reflect any costs associated with doing CACFP training. Type of Purchases Rental of a room to hold the training is one example that we see on budgets. Total Annual Cost Percentage Allocated to Food Service A cost allocation plan will be necessary if the cost is not 100% related to CACFP. Total Annual Expense for Food Service Operation This is the amount of the expenditure from Column 2 multiplied by the Percentage in Column 3. (Automatically populated.) Annual Applied CACFP Funds The Institution must determine if CACFP funds will be used to pay for these expenses. These costs require Prior Approval in the budget.

15 Worksheets L: Administrative Contracted Services This worksheet is used for items such as the accountant, or other purchased services (usually professional services). Item Several types of Contracted Services are listed. Total Cost of Service The cost of the service. Percent Allocated to Food Service A cost allocation plan will be necessary if the costs are not 100% CACFP related. The cost allocation plan will have to be submitted with the budget if CACFP funds are used for the cost. Total Annual Expense for Food Service Operation Column 2 multiplied by Column 3. (Automatically populated.) Annual Applied CACFP Funds The Institution must determine how much of Column 4 will be paid for with CACFP funds. Any time CACFP funds are used, the cost allocation plan and all contracts will need to be submitted with the budget. The proper procurement procedures must be adhered to. This means that the Institution must submit three quotes for the contracted services. Less Than Arm s Length Transaction As discussed before, these would be transactions where one party has control or influence into the decision making. This cost requires Prior Approval in the budget except for the following: Specific Prior Written Approval is required for costs when services are performed by individuals who are not officers, employees, or members of the Institution. All less-than-arms-length transactions; maintenance and service repair contracts on Program equipment; and all other purchased service costs needed for Program operations.

16 Worksheet M: Communications Costs for communication services & supplies must be purchased or leased by the institution. All communication and technology costs must be in the Institution s business name. Item Several line items are already included in the budget. They can be used or substitutions can be made. Carrier Name Example: AT&T Phone Number One number should be listed. Total Monthly Cost The monthly cost. The Institution must provide a copy of the current bill for each item. Number of Months In most cases this would be 12 for an entire year. Percentage Allocated to Food Service Most likely this would not be 100% CACFP. The Institution must determine the time the phone service is used for CAFP purposes. A cost allocation plan of comparing minutes used for CACFP purposes with the overall total used minutes. Refer to Cost Allocation plan. Total Annual Expense for Food Service Operation This is Column 4 times Column 5 times Column 6. (Automatically populated.) Annual Applied CACFP Funds The Institution must determine the amount that will pay for with CACFP funds. These costs require Specific Prior Written Approval.

17 Worksheets N: Other Administrative Expenses This worksheet is used to include any other administrative expenses that are not included in any other worksheet. Also use this worksheet to show CACFP Funds used for another Program such as SFSP (Summer Food Service Program). Item List of items. Total Annual Cost The total annual cost. Percentage Allocated to Food Service Cost Allocation Plan must be completed if the costs are less than 100% CACFP. Total Annual Expense for Food Service Operation Column 2 multiplied by Column 3. (Automatically populated.) Annual Applied CACFP Funds - The Institution must determine how much of Column 4 will be paid with CACFP funds. For Indirect costs, the letter assigning the indirect cost rate from the cognizant agency must be submitted along with documentation as to how the indirect cost was computed. These costs require Specific Prior Written Approval.

18 Worksheet O: Non-Food Supplies This worksheet is for any item used in the CACFP operations that is not considered food or equipment, such as paper products and cleaning supplies. Non-food supplies can be listed as a total, such as paper products. The items do not have to be listed individually nor does a separate list need to be submitted unless the products are allocated. If products are allocated, an explanation of the allocation is needed in the Cost Allocation Plan Box. Items List of items. Total Annual Cost The total annual cost. Percentage Allocated to Food Service Cost Allocation Plan must be completed if the costs are less than 100% CACFP. Total Annual Expense for Food Service Operation Column 2 multiplied by Column 3. (Automatically populated.) Annual Applied CACFP Funds - The Institution must determine how much of Column 4 will be paid with CACFP funds. The Budget recap page shows how these amounts have been added together and placed in Line 9a.

19 Worksheet P: Operating Labor Operating Labor relates to labor costs and taxes for all employees performing CACFP operating duties. Operating duties include anything related to meal preparation, serving and cleaning up. The worksheet asks for the following: Employee Name/Position This is all employees performing CACFP operating duties. Gross Monthly Wages Amount of wages for the month. Total Hours Worked Per Month The total hours cannot exceed for a month. Total Hours for Food Service The number of hours this employee performs CACFP duties. Percent of Total Hours Worked for Food Service Electronically, the spreadsheet will automatically populate this, but if the Institution completes manually the Total Hours for CACFP are divided by the Total Hours Worked per Month. Total Required Employer Taxes This is the matching FICA that employer s pay for their employees and any unemployment taxes. Total Required Employer Taxes to Food Service This is the amount of the total taxes multiplied by the percentage relating to CACFP from Column 5. (Automatically populated.) Monthly Cost for Food Service This is the total Food Service cost for the month which includes the labor attributed to CACFP from Column 2 times Column 5 plus the amount computed in Column 7. (Automatically populated.) Total Annual Food Service Expense Amount of the Monthly Cost for CACFP multiplied by 12 months for an annual amount. (Automatically populated.) Annual Applied CACFP Funds The Institution must determine how much of the annual cost for CACFP will be paid for with CACFP funds or if other funds will be used. This amount cannot exceed the Total Annual Food Service Expense. These costs require General Approval in the budget except for the following: Specific Prior Written Approval is required if any of the operating employees are also a member of the nonprofit institution, a trustee, director, associate, officer or the immediate family. This only required if CACFP funds are being used for that employee s wages. The Operating Labor amount shows on the budget on the recap budget page on line 9b.

20 Worksheet Q: Operating Fringe Benefits This worksheet should be completed the same way as the Administrative Fringe Benefits (Worksheet F) section of the budget. This worksheet is used to reflect any benefits paid to employees with CACFP duties and responsibilities. Benefits include health insurance, dental insurance, life insurance and/or retirement. The Institution should provide documentation of benefits package. (Compensation Plan) Employee Name The electronic version of the spreadsheet will carry over the names of the employees listed on Worksheet D. Type of Benefit The type of benefits are listed by the letters. If other is selected, the Institution must identify it. Total Cost per Month The total cost for these benefits per month. Percentage Attributed to Food Service This percentage is the amount computed based on the time spent on CAFFP from Worksheet D. (Automatically populated.) Percentage Paid by Employee and/or paid by other programs This percentage added to the Percentage Attributed to Food Service should equal 100%. Total Monthly Amount Attributed to Food Service This is the amount computed from Column 3 multiplied by Column 4. Annual Expense for CACFP Operations- This is the amount computed from Column 6 multiplied 12 months. Annual Applied CACFP Funds The Institution must determine how much of the annual cost will be paid for with CACFP funds or if other funds will be used. This amount cannot exceed Annual Expense for CACFP Operations. These costs require the General Approval in the budget.

21 Worksheet R: Rent and Utilities This cost item is listed in FNS Instruction Rev. 4 under the category #36 entitled Rental Costs. For those programs that incur overhead costs, such as rent, utilities and trash removal, these costs can allocate a percentage to the food program each month based on the Cost Allocation Plans use of space and time. There is a drop down box that indicates if this is a Less than Arm s Length Transaction, if the space is rented, or if it is a home office or corporate office Information pertaining to the Lessor/Landlord is provided. Name Address Contact Person Telephone Number Terms of the Lease Lease Cost Allocation Plan Monthly Amount of Lease Agreement Monthly amount of Utilities Total Lease and Utilities (Automatically populated.) Percentage of Space and Time Allocated to CACFP This is determined using the Cost Allocation Plan. It uses the total space available as compared to the space used for CACFP and the total time the space is used as compared to the time used for CACFP. Monthly Cost for CACFP Line C multiplied by Line D. (Automatically populated.) Annual Expense for CACFP Operations - Line E multiplied by 12 months. (Automatically populated.) Annual Costs Paid by CACFP Funds The Institution decides as to whether CACFP funds are to be used for this expense. If CACFP funds are used, the cost allocation plan, the contracts and three quotes must be submitted with the budget.

22 Worksheet S: Operating Contracted Services An example of an operating contracted service is Maintenance and Service Repair for Equipment. These costs require a cost allocation plan if all of the costs are not CACFP-related. The Institution must indicate if it is a Less Than Arm s Length Transaction. For example, if the services were performed by an employee, Board Member or relative of a Board Member or Employee, this would be a less than arm s length transaction. These costs require Specific Prior Written Approval in the budget.

23 Worksheet T: Food and Food Service Management (FSM) This worksheet is where we see most sponsored centers apply their CACFP reimbursement funds. The worksheet covers the net cost of food purchases and the net cost of delivered meals and foods. If the sponsored center wants the CACFP money to be used to pay for the food service management contract, the appropriate foodservice management contract copy with all attachments must be submitted.

24 Worksheet U: Operating Travel This worksheet list expenses incurred for operating travel, for example, travel to purchase food each week. Rate - The Federal rate for travel is acceptable. At this time that rate is 0.56 cents per mile. The Institution can use up to this amount, not more. Employee Name Indicate the Travel Purpose and Location Example: Food Purchases / Charlotte Total Number of Miles Look for reasonable estimated Total Miles per Month. Monthly Average Cost - This number will compute by multiplying the number of miles by the rate. (Automatically populated) Transportation Costs - This column would be used to reflect any costs that are incurred other than those reimbursed by the flat mileage rate. Such as a rental car and gas costs. Meals and Lodging This column would be for costs involved in traveling overnight for CACFP purposes. Number of Months for CACFP The Institution must determine how many months during the fiscal year that traveling is going to occur. Average Annual Costs This is computed based on the costs in Columns 4, 5 and 6 multiplied by the Number of Months for Food Service from Column 7. (Automatically populated) Example: ($56 + $105) x 1 = $161 Percentage Allocated to Food Service If the travel is completely related to CACFP this would be 100% but if there are other reasons for the travel, it would need to be cost allocated. This method of cost allocation will have to be submitted with the budget. Annual Food Service Cost - This is taking into consideration if the travel is cost allocated and the amount in this column is computed by multiplying Column 8 by Column 9. Annual Applied CACFP Funds The Institution must determine if CACFP funds will be used to pay for these expenses. The Institution must submit any contracts involved if rental cars are used. These costs require General Approval in the budget.

25 Worksheet V: Operating Equipment (Direct Expense) This Worksheet list any equipment purchases that will be made in the upcoming fiscal year that will be directly expensed. The Institution must follow federal procurement guidelines. If the sponsored center, affiliated or unaffiliated, wanted to use CACFP money towards an expected purchase, Specific Prior Written Approval must be obtained first before the purchase is made. The SPWA would be completed and sent to the sponsoring organization, who in turn would submit to the State Agency. This form is attached to this budget. At least, three informal quotes for each item should be submitted.

26 Worksheet W: Operating Equipment (Depreciation) Depreciation and use allowances are means of allocating the cost of fixed assets to periods benefiting from asset use. The depreciation method used for the program should be consistent with the method used by the institution for its other federally-sponsored and non-federally sponsored activities. For example, a commercial freezer is an example of a fixed asset that depreciates over time and whose costs could be reimbursed with CACFP funds. A physical inventory is required at least once every two years for items funded with federal monies.

27 Worksheet X: Other Operating Expenses Worksheet X is used for any operating expenses not reflected on any other worksheet. Remember that a cost allocation plan must be submitted for any item with less than 100% allocated to CACFP.

28 Summary The Budget page shows how each category was electronically completed. The first page shows how the Total Annual Expenses column compares to the CACFP Funded Column. The Projected Reimbursement in Line 4(a) plus Projected Cash in Lieu should equal the figure shown in Line 15 (Total Admin and Operating Expenditures) in the CACFP Funded column. This means that this sponsored center has shown how they expect to spend all their CACFP reimbursement on CACFP foodservice related categories.