Financial Management for the CACFP Sponsors of Centers

VIABLE, CAPABLE & ACCOUNTABLE Are you VCA?

Financial Viability 7 CFR § 226.6(b)(2)(vii)(A) Have adequate financial resources to –Operate the CACFP on a daily basis –Pay employees and suppliers, even during temporary interruptions in CACFP payments –Pay fiscal claims Document financial viability through audits, financial statements, etc.

Administrative Capability 7 CFR § 226.6(b)(2)(vii)(B) “Appropriate and effective management practices must be in effect to ensure that the Program operates in accordance with [the regulations].”

Administrative Capability 7 CFR § 226.6(b)(2)(vii)(B) Adequate staff for daily operations Adequate staff for monitoring Policies and procedures in place to assign responsibilities and ensure civil rights compliance

Accountability 7 CFR § 226.6(b)(2)(vii)(C) Each “institution must have internal controls and other management systems in effect to ensure fiscal accountability and to ensure that the Program operates in accordance with the requirements of this part. […]”

Accountability 7 CFR § 226.6(b)(2)(vii)(C) Integrity and accountability Timely and accurate claims Funds and resources used for CACFP purposes Procedures in place to safeguard funds and prevent fraud or abuse

How are you using your CACFP reimbursements?

Allowable Costs Operating Costs –Food –Food service labor –Non-food supplies: Paper products (plates, cups, napkins, etc.) Dishes Serving utensils Cleaning products for the kitchen/food service area –Food service equipment

Allowable Costs Administrative Costs –Administrative labor Time spent on CACFP paperwork, training, monitoring, etc. –Administrative supplies Paper and ink for CACFP records Portion of cost for computer hardware or software –Administrative services Portion of cost for an accountant or auditor Document storage costs

Allowable Costs For all costs: –Is it CACFP-related? –Is it primarily for the benefit of participants? –Did I seek prior approval (if needed)? –Did I follow proper procurement procedures? –Did I allocate the cost (if needed)? –Do I have proper documentation?

Proper Documentation Procurement documents (if applicable) Itemized receipts or invoices –Delivery slips (if applicable) Allocations (if applicable) Payroll records –Time and attendance (if applicable)

Good Financial Management Track CACFP reimbursements Track CACFP-related expenses Monitor administrative expenses Monitor non-profit food service status

Annual Budget Process Develop budget Submit budget by Friday, August 30 Receive approval letter by October 1 Maintain financial documentation Track reimbursements and expenses Update budget as needed –Submit amendments / approval requests

FY 2014 Budget Budget Spreadsheet –Budget for overall CACFP operations Budget Narrative for administrative budget Supporting Documentation for CACFP- funded items in administrative budget Allocation Plan for multi-state sponsors

Developing the Budget Determine estimated reimbursements –Use projections for anticipated number of facilities / enrollment for coming fiscal year

Developing the Budget Determine estimated costs –Base on average costs from current year –Adjust for projected changes in facilities / enrollment –Use Labor Budget Worksheet & Facility Sponsorship Budget

Developing the Budget Allowable vs. unallowable costs Prior and specific prior written approval 15% administrative cost limit

The Budget Spreadsheet

Budget Narrative Describe how each line item was determined Include allocation formula if expense covers: –CACFP and non-CACFP activities –Home and facility sponsorship Identify CACFP-funded items with red asterisk (*) and provide justification –You MUST receive specific prior written approval (SPWA) separate from budget approval before charging these costs to CACFP

Supporting Documents For all CACFP-funded line items: –Submit documentation to support amount, such as: Payroll records with compensation plan or time- and-attendance Lease agreements Contracts Bills Not required for non-CACFP funded items

Allocation Plan Multi-State Sponsors: –Describe how all costs will be allocated Reimbursement percentage or actual time/usage –Must submit for USDA approval

Questions