Financial Management

Counting & Claiming Meals are counted at the point in the food service operation where it can be accurately determined that reimbursable free, reduced-price, or paid meals have been served to eligible students. Meal counts are reported to your director by category.

Non-Program Adults Meals served to adults are neither eligible under the authorizing legislation for the School Lunch & Breakfast programs nor do they earn commodity assistance. The school food authority must ensure that all revenue earned by the CNP does not subsidize program meal served to adults.

Adult Meal Price Price of full paid child meal + Federal reimbursement + Value of commodities

Counting Money ALWAYS have 2 people count the money in an enclosed place. Store money in school safe at night. Divide the responsibilities for record keeping and counting money. Do not let one person handle both tasks.

Daily Edit Checks Inaccurate meal counts can cause loss of reimbursement POS system automates this process Calculated daily

Internal Controls Customer Theft Train staff about theft on the serving line Place cashiers at exit of the serving area Place a la carte before cashier

Internal Control Employee Theft Take a daily inventory of pre-packaged items One person to a cash drawer Keep the cash drawer locked Count money after each meal Deposit money daily

CNP Revenue Reimbursement (free, reduced, & paid students) Adult meal sales A la carte Extra meals/components Catering Special school functions

CNP Revenue Commodities Subsidies Interest bearing bank accounts Rebates Contributions

CNP Expenditures Salary/wages Fringe benefits Purchased services Operating, maintenance, & energy Food Non-food supplies Capital equipment & supplies

Food Production Standards Meal Equivalents (MEQ) is the rate used to compare the amount of labor needed to prepare breakfast, snack, or a la carte with the labor needed to prepare one lunch. 1 lunch = 1 meal equivalent 2 breakfasts = 1 meal equivalent 4 snacks = 1 meal equivalent $3.00 a la carte = 1 meal equivalent

Meals Per labor Hour Current meal equivalents ____________________ Total labor hours worked = Meals per labor hour

Meal Equivalents 80 breakfasts = 40 MEQ 60 snacks = 15 MEQ $270 a la carte = 90 MEQ 200 lunches = 200 MEQ Total = 345 MEQ

Labors Manager 6 hours day 1 staff 5 hours day 1staff 4 hours day Total = 15 hours day

Meals Per Labor Hour 345 MEQ ÷ 15 hours = 23

What Happens When… Participation increases? –80 breakfasts = 40 MEQ –60 snacks = 15 MEQ –$270 a la carte = 90 MEQ –250 lunches = 250 MEQ –Total = 395 MEQ 395 MEQ ÷ 15 hours = 26.33

What Happens When… A la carte sales increase? –80 breakfasts = 40 MEQ –60 snacks = 15 MEQ –$300 a la carte = 100 MEQ –200 lunches = 200 MEQ –Total = 355 MEQ 355 MEQ ÷ 15 hours = 23.66

What Happens When… Total hours worked decreases? –Manager 6 hours day –1 staff 3 hours day –1staff 4 hours day –Total = 13 hours day 345 MEQ ÷ 13 hours = 26.5

Alabama Productivity Standards meals per labor hour

Calculating Food Cost Percentage The percentage of total expenditures spent on food. Alabama standard 30-34%

Calculating Labor Cost Percentage The percentage of total expenditures spent on labor. Alabama standard is 42-46%

CNP “Money” Pie Labor 42-46% Food 30-34% Other 20-28%

Jackson Primary School Where can revenue be increased? –Paid students 76 breakfasts 38 lunches –Free students 87 breakfasts 26 lunches –Reduced-Price6 breakfasts3 lunches