RPEP INC. FINANCIAL MANAGEMENT

Transcription

1 RPEP INC. FINANCIAL MANAGEMENT

2 RPEP Inc. REQUIRES All Centers to Maintain a Separate Bank Account for the CACFP program beginning January (No Co-Mingled Accounts Allowed) CACFP is a separate not-for-profit business within your business Please submit, Bank Statements, Payroll Reports, Cancelled Checks, etc. to support Claim. You must show how you spend CACFP reimbursement in an allowable way.

3 IS Federally Funded Passed through RPEP Inc. A Not-for-profit Food Program Operation. Healthy meals to eligible participants Optional Program Heavily Administered Detailed program requirements. IS NOT Free money Funding for personal expenses To purchase soda/coffee for teachers, non-healthy and/or not enough food and snacks for participants Entitlement Program For the disorganized 3

4 CACFP funds used solely for operation of food service for enrolled participants. Cannot make a profit on Federal food program No more than 3 month operating balance per program year Documentation to support actual costs Must have other source of income Costs Not Covered Temporary interruptions in program payments Unallowable program costs 4

5 1. Accounting System Does your agency have one? If so is it in compliance to GAAP! Generally Accepted Accounting Principles (GAAP) 5

6 Cash/Accrual/Modified Accrual Cash System: Recognizes revenues and costs when cash is received and bills are paid. Accrual System: Recognizes revenues and costs when costs are incurred and uses a payable and receivable system. Modified Accrual System: Certain expenses are reported on an accrual basis. Compliance with Generally Accepted Accounting Principles (GAAP) Rules for the accounting of costs and revenues Resource: or Ask your staff Accountant Financial Reports General Ledger / Check Register Profit/Loss Statement Balance Sheet Co-mingled CACFP funds with Agency funds Method of separation (ie. independent account codes) Approved allocation plan for shared costs 6

7 Acceptable Credit card Checking account Charge Account at local store Invoice or COD Food delivery vendor Unacceptable Cash Purchases (without proper receipts or invoices) Cash Purchases must have paper trail! Including cash-back Food Stamps * Information per GAAP 7

8 Operational Kitchen Meals Preparation Delivery Cleaning Menus Purchasing / Vended Meals 8

9 Allowable Food (consumable) Kitchen Supplies/Nonfood Contract / Vended Meals Food Program Personnel Operational e.g. Grocery shopping Equipment Purchase/Rental 9

10 Costs in purchasing ingredients for menu items (Food Supplies) AND/OR the cost of purchasing itemized CACFP meals from an outside vendor (Contracted Service) that are served to the participants 10

11 Consumable food products used to create menu items served to program participants. Costs can include delivery costs. Report on the Food Supplies/Food Costs line On the Operating Form. 11

12 Outside food service, not related to agency. Contract approved with RPEP/DECAL Provide all CACFP components. Report as Food/Contracted Services on CACFP Operating Cost Form. 12

13 Costs of purchased, prepared meals are contracted service costs Contract must be signed prior to beginning date (contracted service) The vendor should keep production records (a record of quantity of food prepared) 13

14 Unallowable Bad Debts, Fines, Penalties Non food program food costs Coffee, non-cacfp personnel meals (i.e. car payment,mortgage,maintenance, non-employee/family member) Entertainment Toys, Cribs, Roof,etc Purchase of food for personal use Money received must be kept in food program account. Must have strict internal policy. 14

15 Menu planning Food purchasing Cooking Serving the food Cleaning-up after the meal Meal Attendance 15

16 All wages Salaries Employee benefits, and the share of the employee taxes paid by the center 16

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18 Review of Food Program Receipts/Invoices Food Service Labor Time Sheets/and Time Distribution Reports Payroll Statements Balance Sheet or Bank Statements On-Site Financial Reviews 18

19 Operating Cost Form 19

20 The CACFP funds are replacing funds you are now spending 20

21 CACFP Reimbursement is based upon: Number of meals your Center serve to the children in your care Eligibility of the participants There MUST be Food Services Expense to Account for the Food Reimbursement Need. MUST BE ALLOWABLE and CREDITABLE 21

22 Costs should equal expenditures charged to food service program Amounts must be supported by actual documentation NO ESTIMATES 22

23 CACFP is part of your overall organization. Funds received to run organization must also be available to fund CACFP costs not covered by reimbursement. Food Stamps is not another source of income for the center. 23

24 Plan, budget, and organize the funds available will help you to maximize your CACFP reimbursement. No planning, using funds on non-program needs, no accountability of funds spent will result in repayment of funds, loss of funding and/or participation 24

25 SA Reviews (continued) Any non-food program/unallowable cost found to be paid with CACFP funds will be disallowed. May result in repayment to RPEP/DECAL CACFP funds exceed CACFP costs MUST BE ORGANIZED Be able to show and explain your organizations system USDA Reviews Monitoring SA as part of Management Evaluation RPEP Inc. will work with Child Care Centers on Corrective Action (if needed) 25

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27 Milk Beer & Liquor Personal Groceries Spices Bread Crab meat Soda Pop Rabbit Food Teacher Meals Refrigerator 27

28 Dishes Milk Cups Arts/Crafts Supplies Toilet paper Cooking utensils Dishwashing detergent Paper towels used in the classrooms Need to be separated from food supplies on receipts. 28

29 Food Service labor Operational Exp. Admin. Labor Only CACFP % Vended Meals Contracted Service Kitchen Equipment Gas for Vehicles Only CACFP % Maintenance/Repairs Only CACFP % CACFP funds should always be spent on food and kitchen supplies FIRST 29

30 Receipts Invoices Payroll (timesheets, paystubs, etc.) Checkbook/check register General Ledger CACFP Claim documentation Bank Statements A shoebox or garbage bag The number to your accountant Retained for 4 years (3 yrs plus the current) 30

31 Financial Management: Guidance Memo 11 State agency Financial Management policy Child and Adult Care sites (Sponsors & Independent) Instructions Completion of NPFS Report(s) Allowable/Unallowable costs Fiscal Action Procedures FNS Instruction (rev. 3) Abbreviated version Available Electronically User Friendly (under Guidance memo 11) 31

32 Please contact RPEP Inc 950 Eagles Landing Pkwy, Suite 429 Stockbridge GA For any questions! 32

33 Day Care Centers CACFP Training