Transcript School Nutrition Finance

Spring Financial Training
School Nutrition Program and Local Finance
May 2, 2012 Gatlinburg
May 9, 2012 Murfreesboro
May 9, 2012 Pickwick Landing
Office of Local Finance
 LEA technical financial support
 BEP
 IDEA / Special Education
 No Child Left Behind
 Accounting, budgeting, reporting
 Nashville office
 Maryanne Durski
615.532.9510
 Andrew McClusky
615.532-1654
Office of Local Finance
 Field Service Centers – Fiscal Consultants
 Southwest
Ron Adelman 615.306.4062
 Northwest
Brad Davis
615.308.3616
 Middle
Malinda White 615.969.9352
 Upper Cumberland Bobby Palmer
615.308-1592
 Upper East
Jackie Broyles 615.306.7429
 Southeast
Carol Newton 615-306-7974
Accounting Reference Material
NonCentralized
Centralized
For controls
For controls and chart of
accounts
Http:www.tennessee.gov/education/
support/doc/July2011TISUAPM.pdf
Http:www.tennessee.gov/education
/support/doc/July2011TISUAPM.pdf
for Chart of Accounts
http://www.tn.gov/education/support/
doc/schacctman.pdf
Chart of Accounts
Food Service Chart of Accounts (Centralized)
Food Service Chart of Accounts (Centralized)
Centralized
Fund 143
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Federal
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47111 USDA School Lunch Program
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47112 Commodities
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47113 Breakfast
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47114 Other
Current Services
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43521 Lunch Payments Children
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43522 Lunch Payments Adults
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43523 Income from Breakfast
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43524 Special Milk Sales
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43525 Ala Carte Sales
Non Centralized
Fund 141
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Federal
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47111 USDA School Lunch Program
47112 USDA Commodities
47113 Breakfast
47114 Other
Food Service Chart of Accounts (Centralized)
Centralized
Fund 143
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73100 105 Supervisor/Director
73100 117 Career Ladder Program
73100 119 Accountants/Bookkeepers
73100 162 Clerical Personnel
73100 165 Cafeteria Personnel
73100 188 Bonus Payments
73100 189 Other Salaries & Wages
73100 196 In-Service Training
73100 201 Social Security
73100 204 State Retirement
73100 206 Life Insurance
73100 207 Medical Insurance
73100 208 Dental Insurance
73100 210 Unemployment Compensation
73100 212 Employer Medicare
73100 299 Other Fringe Benefits
73100 307 Communication
73100 329 Laundry Service
73100 330 Operating Lease Payments
73100 336 Maintenance & Repair Svs - Equipment
73100 348 Postal Charges
73100 354 Transportation - Other than Students
73100 355 Travel
73100 399 Other Contracted Services
73100 421 Food Preparation Supplies
73100 422 Food Supplies
73100 435 Office Supplies
73100 451 Uniforms
73100 452 Utilities
73100 469 Commodities
73100 499 Other Supplies and Materials
73100 524 In Service/Staff Development
73100 599 Other Charges 0
73100 710 Food Service Equipment 0
Non Centralized
73100 342 Payments to Schools - Breakfast
73100 343 Payments to Schools – Lunch
73100 344 Payments to Schools – Other
73100 345 Payments to Schools - Other USDA
73100 469 Commodities
Food Service Chart of Accounts (Non-Centralized)
Food Service Chart of Accounts (Non-centralized)
Assets
11 Cash on hand
12 Cash in Bank
13 Cash in savings account
21 Other investments
31 Accounts receivable
41 Inventory
NOTE: Any account may be expanded to create a sub-level of reporting
Liabilities and
Fund Balance
61 Income tax withheld
62 Social security tax payable
63 Retirement withheld and
payable
65 Insurance withheld and payable
66 Other payroll deductions
71 Accounts payable
81 Accrued payroll
94 School nutrition fund balance
Food Service Chart of Accounts (Non-centralized)
Lunch
111 Students
112 Adults
113 Other
114 USDA
Milk
131 Students
132 Adults
133 Other
134 USDA (Special Milk)
NOTE: Any account may be expanded to create a sub-level of reporting
Breakfast
121 Students
122 Adults
123 Other
124 USDA
Other Programs
141 Students
142 Adults
143 Other
144 Interest income
145 USDA Commodities (in-kind)
146 Fresh Fruit and Vegetable Program
Food Service Chart of Accounts (Non-centralized)
Lunch
 210 Labor
 220 Food
 240 Supplies
 250 Utilities
 260 Contracted services
 270 Equipment
 280 USDA Commodities
(in-kind)
 290 Other
NOTE: Any account may be expanded to create a sub-level of reporting
Budgeting
 Best Practice
 Involve cafeteria managers in preparing budget
 Communicate with district finance officer for benefit
rates, salary increases
 Base budget on actual expenditures in current year plus
any known increases/decreases
 Budget must be approved by School Board and
governing body
Budget Amendments
 Review budgeted amounts to actual expenditures at least
quarterly
 Finance office should provide monthly revenue and
expenditure reports to School Nutrition
 Submit a budget amendment
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If salary expenditures expected to exceed budget
New grant revenue and expenditures
If total expenditures are projected to exceed budget amount for the
category (i.e. 73100)
 Amendments must be approved by:
 Board of Education (all)
 Governing body (everything except line item transfers)
Commodity Reporting
 Commodity Reporting – Centralized
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Revenue – 47112 USDA - Commodities
Expenditures – 469 USDA – Commodities
Budget amendment and journal entries will be necessary to
record commodities
No separate report in eReporting required
Commodity Reporting
 Commodity Reporting – Non-Centralized
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Report as part of Non-centralized report in eReporting
New line item created for commodity revenue and
expenditures - 84100
No separate commodity report in eReporting required
Reporting Timelines
 Original budget – July 1
 Budget amendments
 Approved by Board of Education and governing body by
June 30
 Plan ahead – do not wait until the school year ends
 Annual Financial Report – August 1 in eReporting
 Non-centralized Cafeteria Report – August 1 in
eReporting
INDIRECT COST
 What are Indirect Costs?—costs incurred for common or joint
purposes. Indirect costs benefit more than one program and
cannot be readily identified with a single program.
 Examples of indirect costs—
 Attendance Director
 Finance Department
 Cost of Audit
 Worker’s Comp Insurance
 Maintenance and Operations costs
Indirect Cost
 What are Direct costs?—costs that benefit a single program, costs
that are identified with a single program.
 Examples of direct costs—
 Teacher’s salaries and benefits
 Instructional materials and supplies
 Professional development
 Direct Administrative costs
 Food Costs for School Nutrition
Indirect cost
 Calculation of Rate—
Indirect Costs__________
Direct Costs-Excluded Expenditures
Excluded expenditures (calculated at the system level) include
equipment, food purchases, trustee commission, transfers out.
Indirect cost
 Restricted Rate
 Lower than Non-restricted Rate
 Limits the amount of general management costs
that can be included in the indirect cost pool
(numerator.)
 Treats as direct costs
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Director of Schools administrative costs
Maintenance
Operations
 Used for other Federal Projects calculations
Indirect Cost
 Non-restricted Rate
 Higher than Restricted Rate
 Treats as direct costs
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Director of Schools administrative costs
Maintenance
Operations
 Used for School Nutrition calculations
Indirect cost
 Using your non-restricted Indirect Cost Rate,
calculate the Indirect Cost to pay to your
General Purpose fund:
Total School Nutrition Expenditures
-Food Expenditures
-Equipment Expenditures
= Expenditure Base
X Non-restricted Rate
= Calculated Indirect Cost
Indirect cost
 An example…
 $1,000,000
 - $300,000
 - $100,000
 = $600,000
 X
12.0%
 = $72,000
School Nutrition Expenditures
Food Expenditures
Equipment Expenditures
Expenditure Base
Non-restricted Indirect Cost Rate
Calculated Indirect Cost
Indirect Cost
 May take indirect cost ONLY IF there is an excess
operating balance (3 months operating
expenditures)
 May take indirect cost up to amount of year end
excess operating balance only
 In prior example, if excess balance was $70,000, then
indirect cost on only $70,000 may be taken.
Indirect cost
 Which year’s rate do I use?
 Use the appropriate rate for that fiscal year….
 Expenditures from July 1, 2011 to June 30, 2012—use the
FY 12 rate.
 Expenditures from July 1, 2012 to June 30, 2013—use the
FY 13 rate.
 When budgeting—use the rate for upcoming fiscal year.
 If you do not pay indirect costs prior to June 30, setup a
payable in Fund 143 and a receivable in General Purpose.
 Check would be written after June 30 from the payable
account. Deposit into GP receivable account.
Indirect Cost
 NOTE:
 If you do take an indirect cost, you may have to
recalculate the indirect cost rate IF some of the
expenditures included are charged directly to the School
Nutrition Program
 Example – SNP pays full cost of 3 maintenance workers,
parts, vehicles, gasoline, etc. – would have to be taken
out of indirect cost calculation since this is a direct cost
 Fiscal Consultant will recalculate if necessary
Questions?