CASH MANAGEMENT Bob Deegan, Deputy Director, Special Nutrition Programs USDA Food and Nutrition Service, Northeast Regional Office

Why talking about Cash Management?  $418,876 stolen from Concord NH by District’s bookkeeper  $335,000 from East Lyme CT by FSMC’s FSD  Lots of smaller thefts, but all have lack of basic management controls in common  Keeps your food service operation from making as much money and from increased financial independence with the District

Who’s food service operation has had a theft?

Should be part of your Business Plan  Cash management is one piece of a well run and profitable business operation along with:  Inventory management  Production records  Portion control/plate waste  Effective procurement  Marketing  Etc.

Cash Management at the POS  If you don’t have a computerized operation – lobby your District to get one  Minimize time & confusion at the POS by:  Use 25 cent increments in pricing to the greatest extent  Encourage families to pay online or add money other time than at lunch (can Main Office collect money?)  Use pre-numbered receipts  Endorse checks right away  Train cashiers, especially on what constitutes a reimbursable meal, and spot check them  Look for “stuff” by the POS (bobby pins, gum, etc.)

Cash Management at the POS cont’d  Count-out cash drawers at the end of shifts  Protects cashiers from future suspicion  Set a tolerance limit for shortages/overages  One drawer per person  Document any cash transfers between drawers  Keep good records  Balance system totals by reconciling daily cash register readings to daily deposits

Now what do I do with the $  Establish written procedures for how cash will be reconciled and deposits made  Limit/control access to cash  As few staff as possible should handle cash  Use two-person control to segregate duties between person receiving cash and person maintaining the accounting records  Need increased oversight if staffing levels prevent two-person control

Now what do I do with the $ cont’d  Get a secure storage container or use the school’s safe  Don’t keep cash in unlocked desk drawers, file cabinets, etc.  Make regular deposits  Always reconcile deposits promptly  Keep good records  Use bonded couriers for bank deposits if not making them yourself

Communications - The most important part of Cash Management  Talk to people and learn from their advice/mistakes  School business officers Good people to reconcile monthly bank statements with  Fellow food service managers, directors SNA members good starting point  Others in retail businesses with high cash flow Universities and colleges tend to have very comprehensive Cash Management procedures

Cash Management  It’s not just $ that’s walking out the door

Cash Management  Use good inventory management and conduct periodic inventories of highly pilferable foods and equipment  Mark equipment  Use production records to detect changes  Consider installing cameras at key locations  Make sure they are aimed to show faces  Only use clear plastic trash bags

My Plate

Questions?