Operating a CACFP Food Program

NON PROFIT FOOD PROGRAM All Food Program Revenues/Reimbursements received to the Food Service Account is Restricted and used ONLY for

NON PROFIT FOOD PROGRAM * Allowable*Verifiable CACFP Costs

NON-PROFIT FOOD PROGRAM CACFP Revenue/Reimbursements is be used to maintain, expand, or improve the Food Service Operation for your Child Care Center

SPECIAL NOTE In order to JUSTIFY a need for the Food Program and to meet meal pattern requirements and serve reimbursable meals, it is strongly recommended that 50% of CACFP reimbursement is used for FOOD FIRST then supplies/non-food If any is left then you can apply to Food Service Salaries

Feeding Happy Healthy Children!

Clean Food Prep/Service Area

Nutritious Food and Supplies

Cooks/Food Service Staff

CENTERS MUST Document & Verify ALL CACFP Expenses

WHAT IS YOUR ACCOUNTING SYSTEM? All participating Centers must Have an ACCOUNTING system in place to maintain records identifying all of its food spending activities.

Accounting System

Centers MUST maintain a separate Food Program Bank Account Separate Bank Account Centers MUST maintain a separate Food Program Bank Account All Program related transactions (Debits and Credits) must occur in this account and all program accounting records and transactions must be segregated from all other non-Program accounts and activities.

All Program related transactions (Debits and Credits) must occur in this account and all program accounting records and transactions must be segregated from all other non-Program accounts and activities. We do not recognize the exclusive use of cash as a method of payment of expenses. Only the use of a Petty cash account is acceptable, which should retain less than $100 and be reconciled monthly on a Petty Cash log sheet. SPECIAL NOTE: Any transfers that come from the designated Program account must be easily tracked back to the program account and must be clearly noted in general registries, journal entries, ledgers and a chart of accounts.

Documenting Allowable Expenses Program Employees & Leadership are responsible for verifying & documenting ALL CACFP expenses.

What must you collect and maintain? Invoices Receipts Payroll Documents Bank Statements Chart of Accounts Petty Cash Log Sheets & any other necessary records/documents to verifying that you used Food Program Funds to purchase the items or paid for the expense

Clear Receipts

Cancelled Checks

Bank Statements

DOCUMENTING EXPENSES

Scheduling Time to Track & Record Expenses

Leaving a Paper Trail Cash Purchases Personnel Activity (There should always be a paper trail to follow the Money) Personnel Activity (Payroll information, cancelled checks, Bank Statements) Monthly Chart of Accounts Petty Cash Log

Operating Cost Documentation

ALLOWABLE EXPENSES Food & Milk Non-Food Supplies Payroll Kitchen Equipment Unallowable

HOW? CASH DISBURSEMENTS Allowable Non-Food Costs Non- Allowable Costs Food Costs Personnel/ Cook Non-Food Supplies Food & Supply Costs Food and Supply items that are: Included on your menu Consumed by the children in your care as part of a reimbursable meal or snack Used to prepare, serve, and clean up the food service area.

Allowable Non Food Supplies Non-food items used to support the operation of the food program Plates and Cups Napkins Dishwashing detergent Plastic Spoons Kitchen Clean Supplies

Allowable Supplies and Kitchen Equipment

Unallowable Cost Unallowable Costs Items that were included on a food program receipt but are not used in the operation of the food program. Receipts with unallowable items will be disallowed. A best practice is to pay for unallowable purchases separately from CACFP costs.

NON-CREDITABLE LIST

TOP Non Allowable Purchases Toilet Paper Chips Sugary Ceral/Processed Food Child Care Toys

TOP Non Allowable Purchases Candy Soda/Sugary Drinks Laundry Detergent Bacon/Process Foods

HOW? CASH DISBURSEMENTS

HOW? PERSONNEL ACTIVITY REPORT Operational Menu planning Grocery shopping Cooking Serving meals Clean up after meals Completing monthly claims Recordkeeping

HOW? PERSONNEL ACTIVITY REPORT Operational = 0 Administrative = 12 # of Hours Non-CACFP = 164

HOW? PERSONNEL ACTIVITY REPORT Operational # of Hours Non-CACFP

HOW? PERSONNEL ACTIVITY REPORT Example: End of Month Calculations: Operational = 0 Administrative = 12 # of Hours Total amounts from all employee PARs. Record those totals on the Monthly Profit (or Loss) Summary Non-CACFP = 164

Verification of Milk Purchases

Verification of Milk Purchases CACFP regulations require each participant’s breakfast, lunch, or supper to include fluid cow’s milk to be reimbursable. CACFP Centers can purchase Milk from any source, such as, Commercial Stores, Food Distribution Companies, Milk Distributors, farmers markets, etc.

Verification of Milk Purchases Centers must submit documentation to verify that CACFP funds are used to pay for monthly Milk purchases: All documentation submitted for proof of payment for milk purchase, must include: Official Vendors Name, Address, Phone (No Rubber Stamping) Date Clear list of Milk Items (description of Milk purchased i.e. 1% or Whole Milk) Purchase Price

Verification of Milk Purchases Milk purchase costs related to your CACFP claim must be verified & supported each month. Acceptable payment verification should include: Proof of Payment (debit, credit, petty cash purchases) Canceled checks Bank Statements (showing the payment to Vendor)

Are the following allowable expenses for the CACFP? QUESTIONS? Are the following allowable expenses for the CACFP? Mortgage – NO Building Insurance – NO Appliances/food service equipment – Yes, may be included with allowable non-food costs Car Payment- NO Paper Towels/Trash can liners – Yes, may be included with allowable non-food costs. Will require a cost allocation plan to determine CACFP portion of expense if they are purchased in bulk for the entire center.

Questions? CACFP Financial Management for Child Care Centers