Transcript Financial Management

Funding your CACFP Adventure:
CACFP Financial Management
Sponsors and Independent
Child and Adult Care Centers
Map of CACP Financial
Management
Review
and
Success
Report to DPI
(Annually/Quarterly
Reimbursement
Received
Submit
Reimbursement Claim
Track Food
Program Costs
& Retain
documentation
Budget
and
Plan
Accounting System
and Recordkeeping
Incur Food
Program
Costs
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CACFP Map Key
• Agency: The organization name on the CACFP Application. Same
as the name on the federal tax-exempt status (non-profit) or the
legal name of the agency (for-profit).
• Child and Adult Care Food Program (CACFP): Federally funded
program through USDA and administered in WI by the
Department of Public Instruction. Provides reimbursement for
eligible meals served to enrolled participants. Sometimes referred
to as the “Food Program”.
• Nonprofit Food Service Financial Report (NPFS): DPI form
required from all participating agencies (for-profit and non-profit)
that is used to report actual food program expenditures and
earned food program revenue. Annually = Independent and Quarterly
= Sponsors.
• United States Department of Agriculture (USDA): The federal
branch of government that oversees and regulates the CACFP
administered to State Agencies.
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CACFP Map Key
• Department of Public Instruction (DPI): The Department in the
State of WI that administers the CACFP to participating
institutions.
• Institution: A licensed center that contracts with the DPI to
administer the CACFP to it’s enrolled participants. Also referred
to as an “Agency”. Two types:
– Independent: One site participating in the CACFP.
– Sponsoring Organization (SO): Two or more sites
participating in the CACFP.
• Affiliated - same legal entity as the Institution/Agency.
• Unaffiliated – no affiliation with Sponsor – SO must be
non-profit
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Child and Adult Care Food Program
IS
• Federally Funded
– Passed through DPI
• a FOOD Program
• Healthy meals to eligible
participants
• Optional Program
– Except in Head Start
• Heavily Administered
– Detailed program
requirements.
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IS NOT
“Free” money
Funding for personal
expenses
To purchase soda/coffee
for teachers, non-healthy
and/or not enough food
and snacks for participants
Entitlement Program
For the disorganized
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Planning: What you will need
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Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures
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Planning: What you will need
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Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures
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CACFP Reimbursement
• CACFP Reimbursement is based upon:
– Number of meals approved to claim
– Eligibility of the enrolled participants
• The funds you receive will not cover all of
your allowable FP costs.
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Other Source of Income
• CACFP is part of your overall organization.
• Funds received to run organization must also be
available to fund CACFP costs not covered by
reimbursement.
• Examples: Headstart, Tuition, W-2, Fundraising,
Private Donations
• Food Stamps is not another source of
income for the center.
• Report projected Source and Amount on Budget
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Resources Available
• Guidance Memorandum #2
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Reimbursement Calculation Worksheet
– Child Care: http://fns.dpi.wi.gov/fns_centermemos
– Adult Care: http://fns.dpi.wi.gov/fns_adultmemos
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Planning: What you will need
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Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures
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CACFP BUDGET
• Projection – “Road Map” of Upcoming Program Year
– Costs must be Allowable, Reasonable, in accordance
to FNS Instruction
– All Revenue Available to fund CACFP
• Budget Summary submitted with online application
– Figures Updated every year.
– Detailed Budget (Attachment G) for Sponsors
• Required every three years – uploaded to online
application – NEW FFY2015
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Administrative & Operational Costs
Administrative
• Monitoring
• Claim
– Compiling
– Submitting
– Reconciling
• Accounting / Bookkeeping
Operational
• Kitchen
– Meals
• Preparation
• Delivery
– Menus
– Purchasing / Vended
Meals
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Frequent Allowable CACFP Costs
(list is not all inclusive)
Allowable
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Food (consumable)
Kitchen Supplies/Nonfood
Contract / Vended Meals
Food Program Personnel
– Admin & Operational
– # of CACFP hours must be tracked
• Employee CACFP Travel
– e.g. Grocery shopping, DPI training
• Audit Services
– CACFP Portion
• Equipment Purchase/Rental
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Food Costs
• Costs in purchasing ingredients for menu
items (Food Supplies) AND/OR the cost of
purchasing itemized CACFP meals from an
outside vendor (Contracted Service) that are
served to the participants
• Should be at least 40-50% of budget
– For healthy, reimbursable meals at least
½ of reimbursement on food costs.
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Food Supplies
• Consumable food products used to create
menu items served to program participants.
• Costs can include delivery costs.
• Taxes must be paid with non-CACFP funds
(tax-exempt).
• Report on the Food Supplies/Food Costs
line on budget and NPFS.
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Food Vendors / FSMC
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Outside food service, not related to agency.
Contract approved with DPI
Provide all CACFP components.
Report as Contracted Services on CACFP
Budget and Financial Report
– Independent: Report as “Other” cost and specify.
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Food Service Labor
All wages, salaries, employee
benefits, and the share of the
employee taxes paid
by the agency.
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Operational Food Service Labor
• Menu planning
– Production Records
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Food purchasing
Cooking
Serving the food
Cleaning-up after the meal
Meal Attendance
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Food Service Labor is also…
• Time spent completing required records
– HSIR and HSIS
– Monthly claim
– Financial reports
• Supervision of day-to-day food service
operations
These are Administrative costs
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Administrative Costs
• Sponsors: No more than 15% of CACFP
meal reimbursement can be spent on
administrative costs without State Agency
waiver.
• Independent Centers: Not an issue
because CACFP meal reimbursement is
usually spent on operational costs, any
leftover should be less than 15%.
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Administrative Costs
• CACFP Administrative Costs should never
be higher then CACFP Operational Costs.
– It should cost an agency more to prepare and
serve the meals then doing the paperwork
and monitoring of the program.
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Frequent Unallowable CACFP Costs
(lists are not all inclusive)
Unallowable
• Bad Debts, Fines, Penalties
• Non food program food costs
– Coffee, non-CACFP personnel meals
(i.e. driver, maintenance, nonemployee/family member)
– Entertainment
– “Family Night”, catering costs
• Purchase of food/supplies for personal
use
– Money received must be kept in food
program account. Must have strict
internal policy.
• Undocumented Expenses
– i.e. “Payroll” for Owner with no
documentation worked in Program
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Resources for Allowable/Unallowable
Costs
• Guidance Memorandum #11
– Summary of CACFP Allowable Costs
• User friendly, searchable, Excel reference
– Child Care: http://fns.dpi.wi.gov/fns_centermemos
– Adult Care: http://fns.dpi.wi.gov/fns_adultmemos
• FNS Instruction 796-2 (rev. 4)
– Electronic copy available on our website at
http://fns.dpi.wi.gov/files/fns/pdf/fmgrev4.pdf
– Derived from OMB Circulars and Federal Regulations for
Financial Management for federal funding.
• CACFP Budget
– http://fns.dpi.wi.gov/fns_cacfpapps
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Planning: What you will need
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Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures
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Bank Accounts
• ACH Payments
– https://apps.dpi.wi.gov/AidsBanking/login
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Must be in agency’s legal name
W-9 verified by DPI
Must have two people responsible
Reimbursement will no longer be issued
via check
• Notify DPI immediately with changes
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Planning: What you will need
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Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures
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Accounting Systems
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Acceptable
Center credit card
Center checking
account
Charge Account at
local store
Invoice or COD
Unacceptable
• Cash
– Including cash-back
• Third party checks
• Food Stamps
– Food delivery vendor
* Information per US GAAP
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Accounting System
• Method of tracking expenses and revenue in your organization
• Cash/Accrual/Modified Accrual
• Compliance with US Generally Accepted Accounting Principles
(US GAAP)
– Resource: http://www.fasab.gov/accepted.html or Ask your staff
Accountant
– Items should not be purchased with CASH.
• Financial Reports
– General Ledger / Check Register; Profit/Loss Statement; and
Balance Sheet
• Co-mingled CACFP funds with Agency funds
– Method of separation (ie. independent account codes)
– Approved allocation plan for shared costs
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Accounting System
• Audits
– Annual Review of Organizations financials by independent
party
– A-133 Single Audit Required if expend over $500,000/year in
federal dollars (non-profits only)
• Single Audit Clearinghouse
http://harvester.census.gov/sac/index.html
• Pdf copy required to be uploaded to Online Application – NEW
– Less than $500,000 - Annual report/review from independent
outside party should be conducted annually.
– For-profits: Compliance review by outside accountant
– Annual Report of organizations financial condition
– Should be completed when federal tax filing is completed.
– Good resource: www.irs.gov
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Planning: What you will need
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Project Reimbursement
Project Expenditures (Budget)
Bank Account in the Agency Name
Accounting System
Written Policy and Procedures
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Policy and Procedures
• Written descriptions that tell the who, what, where and
how of each process of organization.
– No “required” format.
– Understandable to all parties involved.
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Check and Balance for organization processes
Training / Turnover in job duties
Used in job evaluation process
Reviewed and updated frequently
Actually followed
CACFP Financial Procedures required
– Purchasing; accounting/payment of bills; recordkeeping
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Participation: On Your Way
• Approved Application
• Incurring costs (Documentation)
• Monthly Reimbursement
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Participation: On Your Way
• Approved Application
• Incurring costs (Documentation)
• Monthly Reimbursement
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Participation: On Your Way
• Approved Application
• Incurring costs (Documentation)
• Monthly Reimbursement
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Cost Documentation
• Menus
• Production Records (if applicable)
• Receipts/Invoices
– Dated detail receipt of actual items purchased or showing where
CACFP funds were spent.
• Financial Records
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Revenue and Expenditure report
General ledger; Journal ledger; checking ledger
Bank statements for account federal funds are deposited
Payroll documentation (timesheets; payroll checks/register;
federal time reporting sheets)
• Required for all employees funded with federal funds
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Receipts/Invoices
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At a Minimum
Date of purchase
Itemized
Description
Quantity
Price
Method of payment
Separate
Food/Nonfood/Non-CACFP
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Organization
Weekly
• Food Receipts
• Timesheets
Monthly
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Bank Statements
Payroll records
General Ledger
Claim Reimbursement
Receipts by date and
vendor
Retain 3 years + Current
Participation: On Your Way
• Approved Application
• Incurring costs (Documentation)
• Monthly Reimbursement
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Remember!
The CACFP funds are replacing funds
you are now spending
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Claims Processing
• Claims Processed every Tuesday (next
business day if falls on Holiday)
• Only one claim per Program per “week”
• Can be amended up until process date
• Reimbursement received within two weeks
from process date (unless Holiday or
Federal/State shutdown).
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Illustration of Claim Payment
Sample Calendar Month
Sunday
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Monday
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Claim
Submitted
(Agency)
Tuesday
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Wednesday
Thursday
Friday
Saturday
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2
3
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8
Voucher Date
(DPI)
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Claim
Process
Day (DPI)
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Check/ACH
issued
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Reimbursement
• Amount known when claim processed
• Any fiscal action due will automatically be
deducted from claim until paid in full
• Resources:
– Guidance Memo 2 – How reimbursement is
calculated
– Guidance Memo 3 – Everything want to know
about submitting claims
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Reporting: Compliance
• CACFP Financial Reports
• CACFP Reviews
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Reporting: Compliance
• CACFP Financial Reports
• CACFP Reviews
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Nonprofit Food Service Financial
Report (NPFS)
• Form PI-1463 (Independent) and PI1463-A (Sponsors)
• Report of all ACTUAL CACFP
expenditures incurred during the
reporting period.
• Costs should equal expenditures
charged to food service program
plus any additional expenses
covered with non-CACFP funds.
• Amounts must be supported by
actual documentation – NO
ESTIMATES
• Forms can be found under
Guidance Memo 11
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Nonprofit Food Service Financial
Report (NPFS)
• CACFP revenue should be reported
using the accrual method (as
earned, not received).
• Additional program income must be
reported (e.g. interest income,
rebates)
• Additional non-program income
must be reported
– Total Costs less Program income =
non-program income
• Required for ALL CACFP
agencies – even for-profit
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Nonprofit Food Service Financial
Report (NPFS) Due Dates
Independent
• Annual Report
– Reporting period: October 1 –
September 30
 Due Date: November 1st
 Submit via:
 E-mail: [email protected]
 Fax: (608) 267-0363
 Regular Mail
E-mail if need extension
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Nonprofit Food Service Financial
Reports (NPFS) Due Dates
Sponsoring Organization
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1st Quarter
– Reporting period: October 1 – December 31
 Due Date: March 1st
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2nd Quarter
– Reporting period: January 1 – March 31
 Due Date: June 1st
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3rd Quarter
– Reporting period: April 1 – June 30
 Due Date: September 1st
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PI-1463-A
(front page)
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4th Quarter
– Reporting period: July 1 – September 30
 Due Date: December 1st
E-mail if need extension
Reporting: Compliance
• CACFP Financial Reports
• CACFP Reviews
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CACFP Financial Reviews
• SA Reviews (DPI)
– Announced or Unannounced
– Usually occur during a program review
– Items to have available:
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Support documentation for NPFS for current and last FFY
ALL support documentation for food program costs
Bank statements/cancelled checks for food program funds
General Ledger, allocation plan, P/L reports
– Should be able to describe accounting system.
• How do you pay your bills?
• Where did CACFP funds go?
– “It’s at my accountants” – Unacceptable excuse
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CACFP Financial Reviews
• SA Reviews (continued)
– Any non-food program/unallowable cost found to be paid with
CACFP funds will be disallowed.
• May result in repayment to DPI.
• CACFP funds exceed CACFP costs = repayment to DPI
• Appeal-able Action
– MUST BE ORGANIZED
• Be able to show and explain your organizations system
• USDA Reviews
– Monitoring SA as part of Management Evaluation
– SA will work with agency on Corrective Action (if needed)
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Reach Your CACFP Destination
Plan, budget, and
organize the funds
available will help you
to maximize your
CACFP
reimbursement.
No planning, using
funds on nonprogram needs, no
accountability of
funds spent will result
in loss of funding
and/or participation
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Child and Adult Care Food Program (CACFP)
Are You Ready ?
Wisconsin Department of Public Instruction
Tony Evers, PhD, State Superintendent
Which are allowable food costs?
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Milk 
Beer & Liquor 
Personal Groceries 
Spices 
Bread 
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Crab meat 
Soda Pop 
Rabbit Food

Teacher Meals 
Refrigerator

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Which are allowable
nonfood/kitchen supplies?
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Dishes 
Milk 
Cups 
Arts/Crafts Supplies 
Center garden
supplies (min. value) 
• Toilet paper 
• Cooking utensils 
• Dishwashing

detergent
• Paper towels used in
the classrooms 
Need to be separated from food supplies on
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receipts.
What are some “Other” allowable
CACFP expenses?
• Food Service labor  •
– Operational Exp.
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• Admin. Labor 
– Only CACFP %
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• Vended Meals 
Kitchen Equipment 
Gas for Vehicles
– Only CACFP %
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Maintenance/Repairs
– Only CACFP %

– Contracted Service
CACFP funds should always be spent on
food and kitchen supplies FIRST
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What items should you retain to
support your CACFP costs?
• Receipts 
• Invoices 
• Payroll (timesheets,
paystubs, etc.) 
• Checkbook/check
register 
• General Ledger 
• CACFP Claim

documentation
• Bank Statements 
• A shoebox or
garbage bag 
• The number to your
accountant 
Retained for 4 years (3 yrs plus the current)
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QUESTIONS
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Contact Info
Cari Ann Muggenburg, Auditor
Community Nutrition Programs
Ph. 608-264-9551
E-mail: [email protected]
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