Tennessee Department of Education Fiscal Accountability – School Nutrition Spring 2012 Workshops.
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Transcript of Tennessee Department of Education Fiscal Accountability – School Nutrition Spring 2012 Workshops.
School Nutrition Program Finance
Administration“Fiscal Excellence”
Tennessee Department of EducationFiscal Accountability – School Nutrition
Spring 2012 Workshops
7 CFR Parts 210.14 and 220.13(i)
Non-profit basis
Safeguard assets
Management of Non-Profit Food Service Account
Other Federal Programs – program costs for reimbursement
SFA’s – reimbursement = meals x rate
SNP vs. Other Federal Programs
The goal of the SNP is for every student to have nutritionally adequate meals served at school.
School Nutrition Program
Paid Lunches 0.26 (Free + Reduced) <60%
Paid Lunches 0.28 (Free + Reduced) >=60%
Free Lunches 2.77 (Free + Reduced) <60%
Free Lunches 2.79 (Free + Reduced) >=60%
Reduced Lunches 2.37 (Free + Reduced) <60%
Reduced Lunches 2.39 (Free + Reduced) >=60%
2011-2012 Reimbursements
Federal meal reimbursements Children’s and adults’ payments for meals A la carte items Interest Catering
Revenue Sources
Cash on hand Cash receivables Earnings on investments Cash on deposit Value of stocks, bonds, or other securities.
Net Cash Resources
One issue on School Nutrition Side:
Not being allowed to budget and expend the excess balance plan.
Excess Balance Plan
Treated Consistently
A cost may not be assigned to a Federal award as a direct costs if that same cost, incurred for the same purpose, in similar circumstances, has been allocated to other Federal awards as an indirect cost.
Two Examples:
Direct vs. Indirect
A school district requires its custodians to record the distribution of their work hours on time cards that capture only two categories:
Kitchen and Cafeteria andOther
“Kitchen” is billed to food service as direct“Other” is treated as an indirect cost, no
portion allocated to food service.
Inconsistent – only SNP is charged directly. Indirect Cost Guidance p. 18
Direct vs. Indirect
Similarly, food service cannot be charged directly for normal maintenance cost if such costs are included in the school district’s indirect cost pool.
Indirect Cost Guidancepage 21
Direct vs. Indirect
Food in addition to reimbursement Federal farm subsidy Based on number of meals served to
students 2011/2012 value is 23 cents Revenue reported under 47112. Accompanying expenditure under 469
Commodity $’s and Reporting
One time yearly receipt 100% used solely in SNP 10% applied to:
◦ Employment of endorsed food service supervisor◦ Employment of cafeteria managers or assistant
managers certified by SNA or working toward certification
◦ Professional training programs for non-accredited personnel.
State Matching
Rebates received during the year in which the food is purchased are a reduction to food costs.
Rebates received on prior year purchased are recorded as “Other” revenue.
Rebates
Required to make all disbursements of public funds by consecutively pre-numbered warrants or checks. TCA 5 -8-207
Refunds are reductions of revenue, rather than new expenditures.
Internal Accounting manual allows refunds under $2.00 (however not good financial management)
Refunds
TCA 8 -11-110
(f) In the event any federal funds for school lunch program purposes are handled by the county trustee, the trustee shall be allowed for the handling of such funds an amount not to exceed ¼%; provided, that such amount shall not be taken from federal funds, but the equivalent thereof shall be paid to the trustee out of either school funds or county general purpose funds…”
Trustee’s Commission
FNS Instruction 782-5
“The minimum adult payment should reflect the full price charged to students, plus the current value of Federal cash reimbursement plus the value of donated food assistance (entitlement and bonus)
Pricing Adult Meals
Directly involved in the operation and administration of the school nutrition program
and Paid from SNP funds or Permission granted on a case by case basis
by the State School Nutrition Program Director. This requires written request from the Director of Schools.
Adults Eating Free
All foods and beverages sold outside of the reimbursable meal
Purchased from school food service funds
The sale must generate at least the same proportion of SFA revenues as they contribute to SFA food costs
Non-Program Revenue
Healthy, Hunger-Free Kids Act of 2010 requires:
SFA’s to ensure sufficient funds are provided to the nonprofit school food service account for lunches served to students not eligible for free or reduced price meals either through1. prices charged for paid lunches2. non-Federal sources
Paid Lunch Equity (PLE)
Per audit - includes value of inventory
Per books – may or may not include value of inventory
Reported to State Department does not include value of inventory
All must balance except for reconciling inventory per audit
Operating Balance
Income – Account number 47114
Expenditures – current chart of accounts with addition of sub object code
Fresh Fruit and Vegetable
What steps are you taking toward inventory control?
Do you have written procedures to govern inventory management?
Inventory Control
Do your cafeterias cater? If so, do you have a contract? Is the contract itemized to include all
expenses (food, labor, non-food supplies, etc.)?
Did your SNP recoup all costs incurred?
Catering
SNP Supervisor’s Responsibility:
Notify DOS who in turn is obligated to notify comptroller’s office.
http://www.comptroller1.state.tn.us/ca/ (fraud reporting form)
Share Examples
Fraud
In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a complaint of discrimination, write USDA, Director, Office of Adjudication, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call toll free (866) 632-9992 (Voice). Individuals who are hearing impaired or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339; or (800) 845-6136 (Spanish). USDA is an equal opportunity provider and employer.