1. Financial Accountability
Lonnie Burt, MS, RD, CD-N
Senior Director
Hartford Public Schools

2. Financial Management Requires
Fiscal Reporting Systems
Key Performance Indicators
Cash Handling Procedures
Good Communication / Training
Your Eye on the Ball

3. Always About Balance Food Supplies Labor / Benefits
Income
Expenses
Food
Supplies
Labor / Benefits
Equipment Purchases
Equipment Repairs
Office Supplies
Licensing Fees / Technology
Bank Courier
Education / Training
Indirect Costs
Federal Reimbursements
State Reimbursements
Sales to Students and Adults
Daycare / Headstart
Catering
Grants

4. Tools for Sound Fiscal Management
Budget
Financial Reporting Systems (POS & Accounting)
Income and Expense Statements (site and consolidated)
Monthly Inventories
Cash Handling Procedures
Proper Procurement
Key Performance Indicators
Customer Acceptable Menus

5. Budget
The budget is the annual plan for what the fund expects to accomplish.
Projections for revenue and expenses are made based upon previous year financial information, current market trends, enrollment, and reimbursement rate increases.

6. Why Use a Budget?
When planning for the upcoming year, the budget will be a valuable tool. Is income projections higher than expense projections?
If not, where can revenue be increased and expenses decreased.
During the budget year, it is helpful to use the budget to compare to actual income and expenses.
Are you on track, do you need to make adjustments?

7. Income and Expense Statements
Income & Expense statements show management how the fund has performed for a given period of time.
Must be compared, analyzed, and acted upon to be effective.

8. Income and Expense Statements
Comparisons are made to industry standards, prior period of time, other schools, other districts, budget goals.
Comparisons should be made using percentages of costs to total revenue.
Variances in percentages are easy to spot.

9. Income and Expense Statements
Income and Expense statements should be consolidated and broken down by individual schools.
They will point out where problems exist.

10. Why use an Income and Expense Statement?
Throughout the year, it is important to monitor the revenue and expenses to determine financial health of program.
It can be compared to budget to determine if on track with projections.
Comparing to prior year will show trends upward or downward that may need to be addressed.
Using cost as a percentage of revenue relates expenses to revenue. Revenue needs to be higher than expenses to be self-sustaining.

11. Why use an Income and Expense Statement?
Gives enough detail to determine drill down to areas that need to be addressed.
By comparing to prior time period, deviations from the trend can be noticed.
Monitoring income and expenses on a monthly basis provides time to address issues and recalibrate before it is too late.

12. Other Tools Monthly Inventory Cash Handling Procedures
Calculating monthly allows for better control of food and supplies
Used to determine COGS
Cash Handling Procedures
Who counts the register money – is it blind?
Who reconciles the money to the cash reports
What are the procedures if cash does not balance
Proper Procurement
Required by USDA
Allows for better money management

13. Key Performance Indicators
Average Daily Participation – ADP
Total Meals Served / Number Operating Days
Helps to make labor and purchasing decisions / projections
Participation goals and objectives
Menu decisions
Meals Per Labor Hour
Measure of productivity
ADP + Meal Equivalents / total daily labor hours
Acceptable range depends upon type of production – conventional or convenience

14. Key Performance Indicators
Cost as a Percentage of Revenue
Operating ratio that relates expenses to revenue
Analyzed in food and labor costs to determine if reasonable and consistent with benchmarks and projections
Food Cost Percentage
Cost of Purchased Food / Total Revenue
Industry Average is 40-45%
Labor Cost Percentage
Payroll, Benefits, Other Related Labor Expenses / Total Revenue

15. Burns
Burr
Capital Prep
Classical
Jumoke Main
Lunch
427
531
451
377
311
Breakfast
202
187
243
162
145
Snack 34 24
303
A la Carte 8 4 91
109
Meal Equivalents:
Lunch (1)
Breakfast (.67)
135
126
163 97
Snack (.33) 11
100
A la Carte (3.39) 2 1 27 32
total Meal Equivalents
576
666
741
518
408
Divided by:
total daily labor hours
29.74
26.45
35.40
35.95
9.95
Equals:
Meals Per Man Hour 19 25 21 14 41

16. School Manager Responsibilities
Monitor ADP
Reconcile Daily A la Carte Food Sales
Cash Handling Procedures
Accurate Production Records
Proper Ordering/Inventory
Production Techniques
Presentation

17. Where to Start
Determine what you already do and what you want to start doing.
Business Department - who is compiling your invoices for payment, payroll, and your deposits. Who has this information? How can you get it?
Ask your colleagues what are they using for forms, software, reports.
Learn how to use Excel!
Get training on any topic that you are not comfortable with.

18. Take Home Moment Good financial management is data driven.
Develop a budget.
Use your profit and loss statement to analyze your financial status on a monthly basis.
Use Key Performance Indicators that can help you manage your program.
Look at labor costs and start to develop a short and long-term cost savings plan.
Income is dependent upon customer satisfaction.

19. ICN Tools & Resources Financial Management Training:
Team Up - Financial Management Webinars & Tools
Inventory:
Procurement: