Analysis of 2011 Food Service Operations. Jeff Booth, Financial Analyst Supervisor Daniel Lunghofer, School District Accounting Supervisor

Transcription

1 Analysis of 2011 Food Service Operations Jeff Booth, Financial Analyst Supervisor Daniel Lunghofer, School District Accounting Supervisor

2 What is it? Analysis of Food Service Operations Annual Report By Bulletin Public Schools Only Comparable to other districts Meal Participation

3 Why? USDA Requirement 7 CFR (2)(2) File Financial Report with State Annually No More Than 3 months Operating Funds

4 Where Is It? Bulletin No

5 Where do the numbers come from? F 196 Report Program 98 Food Services Unrestricted Indirect Rates from F 196 Report

6 Where do the numbers come from? Child Nutrition Program (CNP) 2000 Database NSLRpt334 Total Meals Served NslRpt087 October Building Enrollment

7 Where do the numbers come from? Form 1505 Financial Information for Report 1800 Who must file? School Districts which contract out food services. Why? Food service revenues and expenditures should be comparable from district to district. How? Breakdown program 98, object code 7 expenditures into labor, supplies, and other. Request food service provider to breakdown expenditures. Limits? Expenditures shall not be greater than total object code 7, Program 98

8 Form 1505 REPORT 1800 EXPENDITURE CATEGORIES Labor Supplies Other Total Expenditure Activity 25 - Pupil Mgmt. and Safety $ Supervision $ 70, $ 70, Food $ 200, $ 200, Commodities $ Operations $ 200, $ 4, $ 204, Total FSMC Object 7 Expenditures $ 270, $ 200, $ 4, $ 474, The grand total in the lower right hand corner of the schedule should be equal to or less than the total purchased services expenditures reported in Object 7 of Program 98, School Food Services in the district s F-196. $ 485, The expenditure activity and object definitions used are found in the Accounting Manual for Public Schools in the State of Washington. Return to: jeff.booth@k12.wa.us

9 Report 1800 A Program 98 Revenues and Expenditures Total Revenues $348,720,427 Total Expenditures $366,976,451 Net Loss $18,256,024

10 Report 1800 A The revenue and expenditure data in Report 1800 A was compiled from the FY Report F 196, Program 98 School Food Services. The report includes the XX98 revenue sources as defined in the Accounting Manual for School Districts and reported in the general fund. Thirty seven school districts reported a net gain. Required to keep excess funds in the program.

11 Food Service Fund Balance Reporting USDA Regulations require excess program income to be limited to being used for non profit food service programs. 7 CFR (a)(2) Regulations also allow for carryover of food service losses.

12 Food Service Fund Balance Reporting At end of year, districts need to estimate net program income/loss. Start with all XX98 Revenues. Subtract direct Program 98 expenditures. Subtract indirect expenditures: Use district s Federal Unrestricted Indirect Rate Apply to Objects 2 7 for all activities except food. Result will be net income or net deficit. Actual calculation to be done at same time as Report 1800.

13 Food Service Fund Balance Reporting Net Income Reporting Districts with a net program income report balance in GL 828 Restricted for Carryover of Food Service Program Revenue.* Districts may carry any net income forward indefinitely. Limited to three months expenditures (1/3 of total expenditures). Beyond that, must submit a corrective action plan to Child Nutrition Services to improve program or food offerings. *GL code available starting in SY Use GL 821 Restricted for Carryover of Restricted Revenues for

14 Food Service Fund Balance Reporting Net Deficit Reporting Net deficits are not reported on financial statements. Supplemental report being developed to report district deficit amounts. Individual years deficits may be carried forward a maximum of five years (i.e deficit will disappear in ).

15 Food Service Fund Balance Reporting Offsetting Net Income/Net Deficits If a district has a deficit/profit in a given year, and a balance profit/deficit for their program, you net out the result. For example: A district with a $10,000 deficit balance has a net income of $11,000 in the next year. The district reports a balance of $1,000 in GL 828. Income is netted against deficits similar to FIFO process.

16 *This item is included in the indirect cost calculation Bethel Revenues Paid Lunches $ 2,255, State Payment 117, Federal Payment 3,529, Federal Commodities 380, Other Payments 19, TOTAL REVENUES $ 6,303, Expenditures Object 1 Direct Expenditures Allocation Net Expenditures Salaries & Benefits $ 2,789, $ (11,577.37) $ 2,777, Supplies 261, $ (1,083.92) $ 260, Purchased Services 170, $ (705.71) $ 169, Food - Supplies 2,270, $ (9,425.81) $ 2,261, Food - Purchased Services 1, $ (5.68) $ 1, Travel & Other 33, $ (140.15) $ 33, Capital Outlay 85, $ (355.68) $ 85, Total Direct Expenditures $ 5,612, $ (23,294.32) $ 5,588, Indirect Expenditures Unrestricted Indirect Rate 13.37% Applied Indirect Expenditures 433, TOTAL EXPENDITURES $ 6,022, Excess (Deficiency) of Revenues Over Expenditures $ 281, Balance $ 374, Balance $ 281, Net Balance as Net Balance Carryforward $ 656, % Percentage of 3 Months' Average Expenditures $ 2,007, $ - Expenditures

17 32360 Cheney Revenues Paid Lunches $ 433, State Payment 23, Federal Payment 894, Federal Commodities 56, Other Payments - TOTAL REVENUES $ 1,407, Expenditures Object 1 Direct Expenditures Allocation Net Expenditures Salaries & Benefits $ 589, $ (364.48) $ 589, * Supplies 7, $ (4.38) $ 7, * Purchased Services 1, $ (1.10) $ 1, * Food - Supplies 686, $ (424.79) $ 686, Food - Purchased Services 4, $ (2.68) $ 4, Travel & Other 1, $ (0.86) $ 1, * Capital Outlay 10, $ (6.72) $ 10, Total Direct Expenditures $ 1,301, $ (805.00) $ 1,301, Indirect Expenditures Unrestricted Indirect Rate 14.83% Applied Indirect Expenditures 88, TOTAL EXPENDITURES $ 1,389, Excess (Deficiency) of Revenues Over Expenditures $ 17, Deficit $ (14,443.01) Balance $ 17, Net Balance as Net Balance Carryforward $ 3, % Percentage of 3 Months' Average Expenditures $ 463, $ - Expenditures *This item is included in the indirect cost calculation.

18 34402 T9O Revenues Paid Lunches $ 146, State Payment 8, Federal Payment 262, Federal Commodities 21, Other Payments - TOTAL REVENUES $ 437, Expenditures Direct Object 1 Expenditures Allocation Net Expenditures Salaries & Benefits $ 234, $ - $ 234, * Supplies 4, $ - $ 4, * Purchased Services 7, $ - $ 7, * Food - Supplies 215, $ - $ 215, Food - Purchased Services 1, $ - $ 1, Travel & Other - $ - $ - * Capital Outlay - $ - $ - Total Direct Expenditures $ 463, $ - $ 463, Indirect Expenditures Unrestricted Indirect Rate 15.04% Applied Indirect Expenditures 36, TOTAL EXPENDITURES $ 500, Excess (Deficiency) of Revenues Over Expenditures $ (62,234.33) Deficit $ (102,300.70) Deficit $ (62,234.33) Net Balance as Net Deficit Carryforward $ (164,535.03) 0.00% Percentage of 3 Months' Average Expenditures $ 166, $ - Expenditures *This item is included in the indirect cost calculation.

19 Report 1800 D Expenditures and Revenues Per Equivalent Lunch

20 Report 1800 D Expenditures Per Equivalent Lunch Equivalent Lunches derived from: 1. Lunches Served 2. Breakfasts Served / 1.5 conversion factor 3. Snacks Served / 3.0 conversion factor 4. A La Carte Revenues

21 Report 1800 D A La Carte Conversion to Equivalent Lunches: A La Carte Revenues / The sum (USDA free lunch reimbursement rate $ donated commodities rate of $0.2025)

22 Questions? Jeff Booth (Report 1800) Daniel Lunghofer (Fund Balance Reporting/Accounting)