CNP Financial Management

Transcription

1 CNP Financial Management AASBO Mentor Program CNP Financial Management Sources of Financial Information Goals for Financial Management Single Inventory Equipment Local Policies Required Transfers for CNP Allowable Costs Unallowable Costs Financial Analysis of CNP CNP Financial Management Goals for CNP Financial Management Consistent Coding for all Systems Correct Coding Correct Measurement Appropriate Analysis Effective Decision Making Process for Financial Management 1

2 Sources of Financial Information Child Nutrition Programs (CNP) Financial Management Manual Local Education Accounting (LEA) Accounting Manual Accounting Code Based on 27 Digit Coding/Component Structure Accounting System Components / _ / / _ / / / _ / / General Ledger and Special Reporting Codes GENERAL LEDGER and SPECIAL REPORTING CODES 1. FUND TYPE and ACCOUNT GROUP 2. ACCOUNT TYPE 3. ACCOUNT CODE (FUNCTION) 4. OBJECT 5. COST CENTER 6. FUND SOURCE 7. APPROPRIATION YEAR 8. PROGRAM CODE 9. SPECIAL USE Reference page 6 Memo dated 8/23/01, p Accounting Printouts, p Fund Types All CNP transactions must be in Fund 12 Account Types Assets [1] - what is owned and due to be received Liabilities [2] - what is owed Revenues/Sources [4] - what is received Expenditures/Uses [5] - what is paid Fund Equity [3] operating balance 2

3 Accounting Codes for Assets Cash in Bank 0111 Change Cash 0115 Cash Short or (Over) 0118 Investments 0121 Accounts Receivable 0131 Interest Receivable 0132 Interfund Receivable 0133 Intergovernmental Receivable 0134 Notes Receivable 0135 Returned Check Receivable 0137 Inventories-USDA 0143 Inventories-Purchased Food 0143 Inventories-Supplies 0146 Asset Codes (Function Codes) 0115 Change cash for cash drawers Must be distributed to each school and recorded at the beginning of each year Returned and recorded at the end of the year 0118 Cash short (over) Each cost center should monitor this balance daily to identify internal control problems Close at end of Fiscal Year Shortage - 699, Other Objects Overage , Other Local Sources Other Asset Codes 0133 Interfund Receivables Paid and closed by year-end closing 0134 Intergovernmental Receivable USDA revenues from SDE 0143 Inventories for Commodities and Purchased Food Addressed in Memo Issued 4/19/02, p

4 Accounting Codes for Liabilities Salaries/Fringes Payable Payroll Withholdings Payable Accounts Payable 0251 Interfund Payable 0261 Deferred Revenues 0271 Accounting Codes for Fund Equity Reserved Fund Balance ( ) Reserved for Encumbrances 0341 Reserved for Inventories 0342 Unreserved Fund Balance 0350 Fund Equity Codes 0342 Fund Balance Reserved for Inventories Adjusting entry to reflect ending balance with corresponding debit or credit to expenditure account Adjusting entry to 0350 Unreserved Fund Balance (FB) and 0342 FB Reserved for Inventories 4

5 Accounting Codes for Revenues USDA Revenues - USDA-Food & Nutrition ( ) USDA-School Lunch Program-Section USDA-School Lunch Program-Section USDA-After School Snack Program 5125 USDA-School Breakfast Program 5130 USDA-Severe Need Breakfast Program 5135 USDA-School Breakfast Program-Start Up Grants 5140 USDA-Food Donation Program 5160 USDA-Donated Foods Rebate/SAE 5161 USDA-Summer Food Service Program 5170 USDA-Wellness 5191 USDA-Fresh Fruits and Vegetable Program (FFVP) 5192 USDA-Child and Adult Care Food Program 5199 Accounting Codes for Revenues Food Service Income ( ) Daily Sales - Lunch 6710 Daily Sales - Breakfast 6720 Daily Sales - A la carte 6730 Daily Sales - Other 6740 Special Functions 6750 Summer Feeding - Contracted/Vendor Income 6760 Other Food Service Income 6790 Accounting Codes for Revenues ARRA NSLP Equipment Assistance 4270 Interest 6810 State Rebates 8993 Sale of Fixed Assets 9310 Operating Transfers In 9210 Use Special Use Code 0034 for required transfers from Foundation Program for State Mandated Raises and Fringes (Pass-thru) 5

6 Revenue Codes Sponsors of Summer Food Service Program (SFSP) Use Revenue Code 5170 Vending Summer Food Service Program Use Revenue Code 6760 Seamless Summer Waiver Program Same as USDA Revenue Codes for School Lunch, Breakfast, Severe Need Breakfast, Snack, and Commodities Accounting Code for Expenditures 4210 CNP, Salaries, Food Services 9340 Summer Feeding for Operation and Maintenance expenditures per Accounting Manual instructions Objects for Expenditures Salaries Employee Benefits Purchased Services Auditing 323 Equipment R & M 341 Garbage/Waste 348 Telephone 361 Electricity 371 Water/Sewage 372 Gas 373 Travel 381, 382 Other 399 6

7 Objects for Food Service Expenditures Purchased Food 461 USDA Commodities 461 Food Service Supplies 463 Food Processing Supplies 464 Other Food Service Supplies 469 General/Office Supplies 471 Objects for Other Expenditures Furniture and Fixtures 492, 541 Non-Instructional Equipment 493 Computer Hardware 495, 545 Dues and Fees Other Objects 699 Indirect Costs 910 Operating Transfers out 920 Cost Center NO COST CENTER REQUIRED 0000 NON-SCHOOL SITES (Special Population) 0001 SCHOOL SITES VOCATIONAL CENTERS COST CENTER POOLS NON-REGULAR INSTRUCTIONAL COST CENTERS Fund Source All CNP transactions default

8 Appropriation Year Current Year 0 LEA Carryover 1 July-September (Federal) 2 Prior Year State Encumbrances 9 Program Code CNP Expenditures Program Code 8420 Special Use Foundation Program Transfer to CNP 0034 Fresh Fruits and Vegetable Program 0074 All CNP transactions MUST be posted to a Cost Center. All Central Office expenditures should be allocated and posted to each school - do not maintain a CNP Central Office Cost Center permanently. Required Transfers, Indirect Costs, Interest Income, Rebates, all CNP Central Office expenditures should be distributed on a quarterly basis at a minimum, preferably monthly. A la Carte must be posted separately from Daily Sales Lunch and Breakfast. A la carte consists of all items, including adult meals, that are priced and sold separate from the reimbursable meals. Single Inventory Concept USDA directive Eliminate the requirement for separate commodity inventories (commodity and non-commodity) Must monitor complete inventory Valuation USDA-use Commodity File Price List Purchased-use current bid price/order guide Uncertain-use current bid price/order guide Addressed in Memo Dated 4/19/02, p

9 Single Inventory Record all inventories to Accounting Code for Assets 0143 Inventories Food Record revenue for commodities using value of commodities received to Revenue Code Commodities Single Inventory All purchased food and the value of commodities used must be recorded to Expenditure Code Food Total of 461 for year Beginning Inventory of Purchased & Value of Commodities Received - Ending Inventory = Food Expenditures Equipment Equipment costing $5,000 or more Must be approved by the CNP Program Coordinator (Ms. Barrett) before it is purchased Must follow the requirement for Fixed Assets Inventory Records Must be capitalized Addressed in Memos dated 12/27/01, p. 95, and 2/26/02, p. 81 9

10 Local Policies Worthless Checks Minimum Requirements Must have policy and exercise due diligence in accepting checks and collecting bad debt Can collect a fee to cover all expenses and worthless checks Must ensure only fees or nonpublic local funds are used to cover costs Should maintain a log of transactions, fees, etc. to document that the public fund has not incurred a true cost Record fees as applicable to 6930, 7260, 7610, etc. Addressed in Memo dated 2/25/02, p Local Policies Charged Meals BOE may NOT lend credit to individuals (Sec. 94, State Constitution) BOE must have policy that is enforced at the school level by administrator for children only with full documentation to reflect the status of charged meals BOE must have procedures in place to ensure students in grades K-3 and special needs students are not denied a meal Nominal meal must be reimbursable to be claimed for USDA reimbursement Uncollected charged meal is an unallowable cost to CNP Adults cannot charge meals Local Policies Student Meal Prices Price Lunch Equity (PLE) Provision Compare the average weighted price for paid lunches to the difference between the per meal Federal reimbursement for free and paid lunches If more, no increase needed If Less, Increase the average price charged for paid meal OR Add non-federal funds to the food service account 10

11 Local Policies Student Meal Prices Price Lunch Equity (PLE) Provision Increase the average price charged for paid meal OR Round down to the nearest 5 cents Maximum increase required is 10 cents Local Policies Student Meal Prices Price Lunch Equity (PLE) Provision Adding non-federal funds to the food service account SFAs can request an exemption from the paid lunch equity requirement if the SFA Has been certified as meeting the meal pattern Can demonstrate that the required increase to paid lunch prices or revenue contributions would cause the SFA to exceed the 3-month operating balance limit, and Demonstrates there are no other clearly necessary or desirable uses for the funds to meet Program requirements and goals, or to address deficiencies in Program operations Local Policies Student Meal Prices Comparison SFA Weighted Average $2.30 PLE tool $2.45 Student Meal Reimbursement Rates Free $3.06 Paid $0.36 Price of Student Meal $2.70 Required price $

12 Local Policies Adult Meal Prices Minimum Price Price of Student Paid Lunch $ Value of Commodities.25 + Reimbursement for Paid Meal.36 Minimum Required Price $3.01 USDA reimbursements/student sales may NOT be used to supplement adult meals BOE may supplement price Other Local Policies Wellness Policy Total Wellness of ALL School Programs Physical Education Healthy Snacks in Vending Machines USDA Guidelines Wellness Coordinator Required Transfers for CNP Pass-Thru Transfers Use worksheet provided each year with Budget Instructions Prepare a worksheet using payroll data for the current year Keep worksheet and documentation and bring forward every year Document how information was obtained for formula Reference pages

13 Required Transfers for CNP Pass-Thru Transfers Transfer of state-mandated raise amount + actual fringes each month Fringes are calculated on the current worksheet Available on CNP website If BOE has permanent reduction of positions (not individuals) Make a percentage adjustment to recognize that the positions are no longer funded Pass-Thru can only be withheld Approval must be requested Cannot withhold more than pass-thru amount less approved equipment request Required Transfers for CNP Indirect Costs Use Approved Indirect Cost Rate as a Maximum Calculate Indirect Costs Indirect Costs = Total Direct Costs-Excluded Costs* x Rate *Excluded Costs Purchased Foods Food Processing Supplies Equipment ($500 or more) Capital Outlay Transfer at least quarterly Addressed in Memo dated 8/23/01, p. 96 Required Transfers for CNP Nonprogram Food Revenue USDA Nonprogram Food Revenue Tool Annual evaluation of nonprogram food revenue and cost Revenue percentage must be greater or equal to cost percentage If not, additional funds should be transferred to the CNP fund Total Nonprogram Food Revenue Total Program Revenue > Total Nonprogram Food Cost Total Purchased Food Cost 13

14 Allowable Costs Consistent with other programs and policies Consistent treatment may not be recorded to CNP as direct cost if any other like cost has been considered an IDC to CNP or any other program or fund Reference pages Allowable Costs Distinguish Food Processing Supplies and Regular Supplies Disposal and used up during service Improvement of Facilities Request Permission Follow procedures to avoid disallowed costs Construction that adds square footage is not allowable Unallowable Costs Worthless checks and uncollected charges Fines and penalties Unapproved and unallowable capital expenditures Entertainment Individual memberships 14

15 Other Issues - Costs Salaries Time sheets are required part-time employees charged to CNP Direct Expenditure Identified specifically with CNP Program equipment and repair and maintenance for program equipment are direct expenditures CNP Revenue Restricted for use in CNP Food Service operation only Other Sales Foods of Minimum Nutritional Value Cannot be sold during school hours Competitive Foods Can only be sold by CNP during meal service times Financial Analysis Review printouts for accuracy and unallowable costs Calculate fund balance Calculate meal per labor hour (MPLH) Calculate price per meal cost Calculate indirect cost and pass thru Compare to amount recorded to actual calculations Reference pages

16 Financial Analysis of CNP Net Results = Revenues minus Expenditures Percentage of Expenditures to Revenues Meals per Labor Hour (Recommend MPLH) Per Meal Costs Food Costs Labor Costs Total Costs Financial Profile Increase Revenues Meal Prices Consider increasing meal prices Increase Participation Activities to promote child nutrition programs Survey students Expand Meal Service Operations, options, menus, a la carte, etc. Provide nutritional items that students will purchase Decrease Expenditures Labor Reallocate, Not Rehire, and Release Labor Food Use less prepared foods Equipment Maintain for extended use and longer life 16

17 Questions Carolyn Rhodes Phone : (334) crhodes@alsde.edu 17