PRE-CON

VCA BASICS

1

2 16

2

ARE YOU IN THE RIGHT

PLACE?

This session is NOT the place to evaluate your VCA – it is intended to

address the following:

• What is VCA?

• Why is VCA important?

• When will an organization’s VCA be evaluated?

• Things to keep in mind

• Practical exploration of materials presented

• Common errors/issues

Note: ISDs are not required to demonstrate VCA at time of application.

3

YOU promise to follow HOUSE

RULES for this session:

• Turn off the ringer on your phone.

• Sit next to someone that you DO

NOT KNOW so you can fully

benefit from the session activities.

• Sit in the front of the room, if

possible.

• Leave the room if you need to text

or take a call; come back when

you are ready.

• Be back on time from breaks –

doors will close promptly at the

designated time and the session

will continue.

• PARTICIPATE IN ALL ACTVITIES!

WE promise that:

We will give you our undivided attention

during this session.

We will share our experience and knowledge,

and some Best Practices, to enable you to

navigate VCA at any stage of the program.

We will start the session on time.

We will end the session on time.

4

ABOUT THIS SESSION

• This is a 4 hour session.

• You will need something to write with to fully participate in this session’s activities.

• This session is covering A LOT of information in a fairly small amount of time. Use the notecards provided to write down any question(s) that may come up – we’ll answer what we can during class.

• If there are any questions that we do not have the time to address during this session and/or that do not apply to the group, we will post the answers on SquareMeals after the conference.

Resource materials:

• USDA CACFP Handbooks

• TDA CACFP Handbooks

• 7 CFR Part 226

Disclaimer: The examples and ideas included in this session are meant as viable options to teach and provide additional guidance to each organization. There are other approaches not addressed in this presentation that can be utilized to demonstrate VCA. Please refer to applicable Federal & State regulations for additional guidance.

5

6

V

C

A

7

WHAT IS VCA?

VCA

Viability

Capability

Accountability

8

WHY IS IT IMPORTANT IN

THE CHILD AND ADULT

CARE FOOD PROGRAM

(CACFP)?

The federal CACFP regulations require all participating

institutions to demonstrate financial viability, maintain adequate

administrative capability, and have internal controls for

accountability.

• These requirements were put into place to ensure that tax payer

money is being used effectively for the intended purpose.

9

CONSIDER THESE QUESTIONS:

• How many years have you/has the organization been in business

(operated)?

• More years = indicator of viability

• Do you/does the organization have a steady history of

community involvement and/or services?

• History of community involvement and/or services can be an

indicator of capability

• How is business?

• Net income/increase in net assets (each year and/or cumulative)

= indicator of viability & capability

• Trends in cash flows (increases in cash and total net asset

position) = indicator of viability & capability

10

WHEN WILL AN ORGANIZATION’S

VCA BE EVALUATED?

The Texas Department of Agriculture (TDA) will assess each

organization's viability, capability, and accountability during the

initial application process and continue to monitor viability,

capability, and accountability by requesting updates and

conducting administrative reviews.

• FYI:

Based on compliance data, a Renewing CACFP CE may be

required to complete a VCA evaluation at the time of application

renewal. If this is the case, the CE will be notified via email.

11

SUBMITTING VCA

DOCUMENTATION FOR REVIEW

• Provide current, accurate,

and complete information.

• Provide policies and

procedures that answer

WHO, WHAT, WHEN,

WHERE, WHY, HOW and

HOW MUCH.

• Provide policies and

procedures that are easy

to understand and follow.

• Provide someone else’s

forms.

• Provide outdated

information.

• Provide inaccurate

information.

12

WHAT DOCUMENTATION IS REQUIRED

TO BE SUBMITTED TO TDA ?

Documentation requirements will

vary depending on:

• The type of CE you/your organization

represents (Independent Center, Sponsor of

Centers, Sponsor of Day Care Homes, or a

Dual Sponsor), and

• Any history and/or issues that may be

identified during review.

13

STANDARD DOCUMENTATION REQUIRED

FOR A NEW INDEPENDENT FOR VCA @

APPLICATION

• Financial documentation

• Audited financial statement; or balance sheet and income statement.

• Organizational Chart

• Organization’s Legal Documentation – Articles of Incorporation, Assumed Name Certificate, Certificate of Formation (all that apply)

NOTE: The above noted required documentation may not be all-inclusive of the documentation that is required for your particular application as requirements may vary based on the type of organization and/or available review history.

14

STANDARD DOCUMENTATION

REQUIRED FOR A NEW SPONSOR FOR

VCA @ APPLICATION

• Performance Bond (Form ID: CACFP-005)

• Requests to waive the performance bond must be submitted in writing via CACFP.Bops@TexasAgriculture.gov

• Comprehensive Financial Statements

• Balance Sheet, Income Statement, and Statement of Cash Flow (For Profit) OR

• Comprehensive Financial Statements – Statement of Activities, Statement of Financial Position, and Statement of Cash Flow (Non-Profit)

• Policies and procedures that assign CACFP and Civil Rights Responsibility

• Outside Employment Policy

• Organizational Chart

• Site Monitor Review procedures AND/OR Provider Monitor Review procedures

• Site Recruitment Plan AND/OR Provider Recruitment Plan

• Organization’s Legal Documentation

• Articles of Incorporation, Assumed Name Certificate, Certificate of Formation (all that apply)

NOTE: The above noted required documentation may not be all-inclusive of the documentation that is required for your particular application as requirements may vary based on the type of organization and/or available review history.

15

COMMON ERRORS FOR VCA @

APPLICATION

Incomplete P&Ps, and/or P&Ps do not

have the correct organization name.

Budget information submitted does not match

financial documentation submitted.

Staffing information does not match across the

application materials submitted.

VCA information submitted for

application cannot be verified

during an on-site review.

16

BEST PRACTICES SUBMITTING

FOR VCA EVALUATION

• ALWAYS remember – this is BUSINESS.

• BE HONEST!

• Don’t wait until the last minute to prepare your VCA

information for review.

• This includes training staff

• More information is always better than not enough.

• Documentation, documentation, documentation…

• Spell-check

17

WHAT QUESTIONS MUST THE VCA

ANSWER?

1. Who

2. What

3. When

4. Where

5. Why

6. How

7. How often/How much

18

LET’S BREAK IT DOWN

19

WHAT IS VIABILITY?

20

ASK YOURSELF:

Does your organization have an operation that will be here

tomorrow and the next (even without being part of the

Program)?

HINT: The argument that you

cannot pay staff until you

are reimbursed by TDA is

contrary to the characteristics

noted above for VCA…

21

Financial Management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. Efficient Management of money for CACFP:

Performing or functioning in the best possible manner with the least waste of time and effort; having and using requisite knowledge, skill, and industry; utilizing a particular commodity or product with the least waste of resources or effort (usually used in combination) – all ensuring efficient use of program money/funds.

Effective Management of money for CACFP:

Ensuring and maintaining accountability with program rules and regulations because operating in conflict with the program rules and regulations causes money/funds to be lost, and possibly becoming a debt/liability.

Objectives of organization for CACFP:

Provide a nonprofit food service program to qualified children and/or adults in compliance with program rules and regulations while ensuring the continued financial health of the organization.

NOTE:

Financial Management includes budgeting, accounting, costing standards, management of property, procurement standards, and fiscal audits. Records of these activities must be supported by source documents to accurately and completely disclose the sources and application of funds.

VIABILITY IN BUSINESS –

FINANCIAL MGT.

22

23

Activity #1:

In writing:

Explain your organization’s viability status for a reader that DOES NOT

have any familiarity with your organization.

FYI:

Be prepared to share and discuss!

24

Remember: Who, What, When, Where, Why, How, and How Much/How Often?

25

BREAK TIME

26

WHAT IS CAPABILITY?

27

ASK YOURSELF

Do you/your organization not only WANT to be in the

Program but do you/does your organization have the

(cap)ABILITY to operate all aspects of the Program?

28

ADMINISTRATIVE

CAPABILITY IN

BUSINESS

Remember, your organization is a BUSINESS first. So which

aspect(s) of a business is/are demonstrative of

Administrative Capability?

• One aspect would be Staffing

• Total number of staff

• Qualifications of staff

• Staffing plan

29

DOES THE

ORGANIZATION HAVE

Staff that has/have experience areas applicable to running

the Program?

This could be demonstrated by experience with the

following:

• General Business,

• General Management,

• Accounting & Finance,

• Food Management,

• Grant Monitoring & Compliance, and/or

• Food & Nutrition Programs.

30

31

32

Activity #2: Discussion

Discussion topic -

Explain to your partner(s) how your organization ensures and demonstrates

capability.

Remember: Who, What, When, Where, Why, How, and How Much/How Often?

SO, ARE YOU CAPABLE?

33

WHAT IS ACCOUNTABILITY?

FYI:

For CACFP there are 2 “main” areas of Accountability:

Fiscal and Program.

34

ACCOUNTABILITY

35

POLICY VS. PROCEDURE –

WHAT IS THE DIFFERENCE?

• Policy = a high-level overall plan embracing the general goals

and acceptable procedures

• Example: It is the policy of ______________ that the organization will file claims on the 1st of the month (or the following business day if the 1st is a non-workday) for the pre-ceeding month.

• Procedure = a series of actions that are done in a certain way or order : an established or accepted way of doing something

• Example: Usually _________________ files claims on the 1st of the month for claims accrued in the pre-ceeding month.

• Think “Follow-Through”: If the P&Ps are not adhered to in the operations of the organization it’s an indicator that there may be an issue with accountability.

36

ASK YOURSELF:

Are you willing and able to take ownership of the Program operations?

37

38

39

Activity #3:

In writing, explain how your organization ensures and demonstrates fiscal and program

accountability for a reader that DOES NOT have any familiarity with your organization.

Remember to answer the following: Who, What, When, Where, Why, How, and How

Much/How Often? Be prepared to share and discuss!

Share your assignment with your neighbor; discuss and give honest

feedback: Did the assignment answer: Who, What, When, Where, Why,

How, and How Much/How Often?

40

BREAK TIME

41

KEEP IN MIND

• Not all CEs are the same = not all situations are the same.

• We have not exhausted all indicators of VCA within this

presentation; we’ve focused on general concepts that will

allow you to make an informed decision.

• VCA must be maintained for the entire duration of your

organization’s participation in the CACFP.

42

COMMON ERRORS FOR VCA

MAINTENANCE – COMPLIANCE

Most compliance findings occur because a CE not following their own written policies & procedures, and/or because there is a lack of internal controls in place at the organization.

• Internal controls are the steps in place to make sure the organization is operating effectively and are significant indicators of capability and accountability

A large number of compliance issues are caused by a CE failing to maintain the appropriate documentation.

• ALL documentation related to the CACFP MUST be maintained, and be provided to TDA upon request, by the CE for a minimum of three (3) years.

43

44

VCA Crossword

RECAP

VCA

VCA - applications

VCA - Renewals

VCA - Reviews

VCA -Maintenance

Accountability

Capability

Viability

45

Use the Action Plan handout to prepare for application for

participation in the CACFP.

46

PLEASE

COMPLETE THE

SURVEY BEFORE

YOU LEAVE THIS

CLASS

47

48