2. Presenters Susan Barkley Division of District Support susan.barkley@education.ky.gov 502.564.3930 extension 4437 Sue Bartenfield Division of School and Community Nutrition sue.bartenfield@education.ky.gov 502.564.5625 extension 4922

3. Nonprogram Food Costs  Required by Healthy Hunger-Free Kids Act  Effective date: July 1, 2011 (SFY 12)  Objective: Ensure nonprogram activities are not subsidized by program revenues

4. Program Activities Nat’l School Lunch Breakfast After School Snack Fresh Fruit & Vegetable All other activities are nonprogram

5. Calculate Nonprogram Food Cost Obtain an average reimbursable meal cost Multiply the average meal cost by the number of meals served in a month Equals one month’s food costs for reimbursable meals Subtract calculated cost for reimbursable meals from total food cost Equals nonprogram food cost Include: NSLP, breakfast, FFVP, and after school snack

6. Non-program food revenue tool Gather the following information: Food costs of reimbursable meals Food costs of non-program foods Revenue from non-program foods Total revenue

8. SNP Report  Objective: To ensure that cash balance does not exceed three months’ operating costs

9. A positive number in “Excess Balance” means there is more than 3 months’ operating costs available “Opening Balance” will automatically populate from prior period’s report SNP Financial Report Jul - Dec 2013 REVENUES AND EXPENDITURES 1. Opening Balance (populates from prior period closing balance) $ 203,678.39 2. Revenues for Reporting Period a. Program Revenues (object codes 161*) $ 228,644.25 b. State Matching Requirement (object codes 3***, except 3900) $ - c. Federal Reimbursement (object codes 4***) $ 578,936.54 d. Nonprogram Revenue (object codes 11**, 12**, 13**, 14**, 15**, 162*, 163*, 1650, 1690, 17**, 18**, 19**, 5***) $ 13,854.07 e. Total Revenues - Items 2: (a + b + c + d) $ 821,434.86 f. Percent Program Revenues = Items 2: (a + b + c) / e98.31% g. Percent Nonprogram Revenues = (100 - Item 2f)1.69% 3. Expenditures for Reporting Period a. Program Food Expenditures (object code 0630) $ 440,093.27 b. Nonprogram Food Expenditures (object codes 1630N, 1630C) $ 276,511.31 c. Salaries (object codes 01**) $ 60,201.25 d. Employee Benefits (object codes 02**, except 0280) $ 19,929.91 e. Purchased Services (object codes 03**, 04**, 05**) $ - f. Equipment Purchase (object codes 073*) $ 23,198.07 g. Supplies/Miscellaneous (Object codes 061*, 062*, 064*, 0650, 066*, 067*, 0680, 069*, 071*, 0720, 08**, 0910, 0914, 0915, 0920, 093*, 0940, 0950, 0960, 0990) $ - h. Indirect Costs (if applicable) (object code 0913) $ - i. Total Expenditures = Items 3: (a + b + c + d + e + f + g + h) $ 819,933.81 4. Closing Balance = (Item 2e + Item 1 - Item 3i) $ 205,179.44 5. Gain or Loss = (Item 2e - Item 3i) $ 1,501.05 6. Three Month Average Operating Cost = (Item 3i / 2) $ 409,966.91 7. Cash Balance (balance sheet account 6101) $ 173,479.37 8. Excess Balance = (Item 7 - Item 6) $ - 9. Indirect Cost Rate10.7100% 10. Indirect Cost for Food Service Operation = Items 3:(c + d) * Item 8 $ 8,582.05

10. 2/15/2014SAMPLE COUNTY BOARD OF EDUCATIONPG 1 BALANCE SHEET FOR 2014glbalsht FUND: 51FOOD SERVICE FUND / NET CHANGEACCOUNT FUND: 51FOOD SERVICE FUND FOR PERIOD BALANCE ASSETS516101CASH IN BANK43,780.81173,479.37 516171INVENTORIES FOR CONSUMPTION0.0031,791.00 TOTAL ASSETS 43,780.81205,270.37 LIABILITIES517421ACCOUNTS PAYABLE0.00-90.89 517603PURCHASE OBLIGATIONS-90,064.59641,231.70 TOTAL LIABILITIES-90,064.59641,140.81 FUND BALANCE516302REVENUES CONTROL-384,737.40-1,025,113.25 517602EXPENDITURES CONTROL137,278.20819,933.77 518739RESTRICTED - NET ASSETS (FD SVC)203,678.390.00 518753ASSIGNED - PURCH OBL - CURRENT90,064.59-641,231.70 TOTAL FUND BALANCE46,283.78-846,411.18 TOTAL LIABILITIES + FUND BALANCE-43,780.81-205,270.37 * * END OF REPORT - Generated by Beyonce * *

11. Project Codes  Commodities – 201X  School breakfast – 203X  National school lunch – 205X  Special milk – 206X  Child and adult care food – 208X  Summer food – 209X  Nutrition education & training – 214X  Fresh fruits & vegetables – 215X  NSLP equipment, child nutrition – 225X

12. Object Codes  0630 – Food  Suggestion: 0630N – Nonprogram food costs 0630C – CACFP food costs Or use some other character at the end of 0630 to segregate these costs  0639 – Other Use this for commodity fees to keep them separate from commodity food value

13. Revenue Object Codes  May use 1620 as a summary code instead of breaking out into 1621-1629  May use 1630 as a summary code instead of breaking out into 1631-1637

14. Indirect Cost Issues  Use nonrestricted rate or a lesser rate  Apply the rate to salaries and benefits (excluding on-behalf payments)  Cannot treat something as a direct cost if it is also included in the indirect cost pool

15. Indirect Cost Pool

16. Indirect Cost Issues  If a cost is considered a direct cost to one federal program, it must be treated as a direct cost to ALL federal programs Example: garbage removal Example: maintenance personnel  Recommendation: make indirect cost entry monthly

17. Other Issues  Administrative Review Finance component will involve finance officers  Interest earned on food service funds – make entry monthly