1. Operating a CACFP Food Program

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

3. NON PROFIT FOOD PROGRAM
* Allowable*Verifiable CACFP Costs

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

5. 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

6. Feeding Happy Healthy Children!

7. Clean Food Prep/Service Area

8. Nutritious Food and Supplies

9. Cooks/Food Service Staff

10. CENTERS MUST Document & Verify ALL CACFP Expenses

11. 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.

12. Accounting System

13. 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.

14. 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.

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

16. 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

17. Clear Receipts

18. Cancelled Checks

19. Bank Statements

20. DOCUMENTING EXPENSES

21. Scheduling Time to Track & Record Expenses

22. 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

23. Operating Cost Documentation

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

25. 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.

26. 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

27. Allowable Supplies and Kitchen Equipment

28. 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.

29. NON-CREDITABLE LIST

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

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

32. HOW? CASH DISBURSEMENTS

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

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

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

36. 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

37. Verification of Milk Purchases

38. 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.

39. 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

40. 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)

41. 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.

42. Questions? CACFP Financial Management for Child Care Centers