1. Linda Netterville, MA, RD, LD Contractor, Nutrition Program, DADS

2. Identify why it is important to know the meal cost Identify the key components of meal costing. Identify steps to keep meal cost within the budget. Clarify audience questions and wrap-up

3. Why is it important? What are the key components of meal costing? How can you control meal costs?

4. Cost = price paid to acquire, produce, accomplish or maintain anything Price = the sum in money or goods for which anything is or may be bought or sold Rate = a fixed charge per unit of quantity

5. Expenditure = Outlays/payments made by the SUA and/or AAAs using OAA federal funds to provide an allowable service Total Service Expenditure = OAA expenditures plus all other funds administered by the SUA and/or AAAs on behalf of elderly individuals and caregivers for services meeting the definition of OAA services

6. Program Operations Program Accountability Program Sustainability

7. Older Americans Act Title III (C1, C2, NSIP), V, VI Other Federal Social services or community service block grants State-Vary by Sate

8. Competition for limited dollars Grants Fundraising Decline in client contributions Competition with for profit companies

9. Meet the demand for meals Maintain quality Manage costs against revenues

10. Demonstrates impact of program to funders Performance measurement Demonstrates efficiency Demonstrates effectiveness

11. Optimizes costs relative to revenue Potential to provide meals and services for additional revenue Understand bid prices if purchasing meals from a caterer

12. Social Entrepreneurship Catering Expanded Nutrition Services Other Programs-USDA Child Nutrition For Pay Options

13. Long Term Care Services and Support (LTSS) Transition Care Managed Care

14. Food/Supplies Equipment Personnel Occupancy/Fixed Costs Transportation/Travel Administrative/General

15. To find the food cost per meal: Beginning Inventory +Purchases (from invoices)________ =Total Food Available for the Period - Ending Inventory__________________ =Raw Food Cost

16. To find the raw food cost per meal: Raw Food Cost Number of Meals Served= Raw Food Cost per Meal

17. Group Activity Worksheet Activity #1

18. 18 EmployeeWage RateHours Worked Total Salary or Wages Tax Match (SSI & Medicare) Benefit Contribution Total Monthly Labor Cost Person A N/A $1,200.00$91.80$350.00$1641.80 Person B $12.0040 $480.00$36.72$200.00$716.72 Person C $8.0018 $144.00$11.02N/A$155.02 Total N/A $1,824.00$139.54$550.00$2,513.54

19. Group Activity Worksheet Activity #2

20. Menu Planning Purchasing/Storage Food Preparation/Service Labor Compare Actual Costs to Budget

21. Utilize a cycle menu Cook from scratch vs. convenience Food availability Consider season variations Buy food of the quality most suitable Consider the cost of labor Consider the equipment Consider the service container

22. Purchasing Compare price and quality Purchase according to the menu Consider what is on hand Consider delivery and storage Buying methods Open Market Sealed or Fixed Bid Cost-Plus Co-op/Group Purchasing

23. Food on hand represents $$$ Check all deliveries for: Pricing Quantity Quality Maintain proper storage: Dry Refrigerated Frozen Rotate stock

24. S tandardized Recipes Consistent quality Predictable yield Customer satisfaction Consistent nutrient content Food cost control Efficient purchasing Labor control

25. Maintain proper temperatures of food Cold food below 41 0 Hot food above 135 0 Accurate forecasting and preparation Portion control

26. Efficient scheduling Availability of volunteers Labor should be in relationship to the amount of work Meals per man hour

27. Poor menu planning Careless purchasing and receiving practices Failure to use standardized recipes Inaccurate forecasting Careless food storage Waste in food preparation Portion control not followed 27

28. Monitor expenditures/revenues on a regular basis Analysis of cost/meal Raw food cost per meal Total cost per meal Identify areas under or over budget Take action to control

29. Group Activity Worksheet Activity #3