Chapter 8 - Financial Accountability

Pinellas County School Food Service Procedure Manual

Chapter 8 Financial Accountability8.01 Overview

8.02 Food Service Manager’s Responsibilities

8.03 Cashier’s Responsibilities

8.04 Change Funds

8.05 Prepayments

8.06 Refund of Prepayment Account Balances

8.07 Cash Closeouts

8.08 Deposit Procedures

8.09 Returned Checks (NSF Checks)

8.10 Courier Procedures

8.11 Weekly and Monthly Reports – Schools

8.12 Inventory

8.13 Travel – In County Reimbursement

8.14 Travel – Out-of-County Reimbursement

8.15 Travel – Temporary Duty Elsewhere (TDE’s)

8.16 Payroll Procedures

8.17 Petty Cash

8.18 Profit and Loss Statements

8.19 Office Security

8.20 Audits and Reports

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8.01 OverviewPinellas County School Food Service Department is self-supporting. To

that end, the goal of the financial management process is to provide quality product, service and customer satisfaction, while maintaining a fiscally sound program using cost containment procedures.

The school food service program in Pinellas County receives federal and state funds and donated commodities. In exchange for these revenue items, the school food service department must meet specific federal requirements. In order to achieve these requirements the financial accounting system must:

Provide accurate meal counts by Free, Reduced price and Paid categories at the Point of Sale.

Ensure that students served a Free or Reduced-price meal have a current, approved application on file.

Comply with all federal and state requirements for the National School Lunch, School Breakfast and After-school Snack and Donated Foods programs.

Comply with federal and state regulations in purchasing. Provide an accounting system that properly manages, records and

accounts for the revenues, expenditures and all other fund transactions.

Accrue all interest earned by school food service funds to the school food service account.

Maintain records for three (3) years plus the current year.

Reference: Pannell-Martin, D., School Food Service Management for the 21 st Century , 5 ed. Alexandria Virginia. (1999)

Sound Business Practices Collecting and expending of school food service funds shall be in

accordance with the federal and state regulations governing Child Nutrition Programs, the Florida Constitution, Florida Statutes, State Board of Education rules, and school board rules. Sound business practices should be observed in all transactions.

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8.02 Food Service Manager’s Responsibility

1. Operates the school's child nutrition program within the established financial management guidelines.

A. Follows rules, procedures and expectations for handling District and customers’ money.

B. Accepts responsibility as guardian of CNP funds.C. Protects the financial integrity of the CNP.

a. Follows established procedures to assure accuracy.b. Follows established procedures to prevent fraud.c. Follows established security measures at all times.

2. Operates a cost effective program.A. Uses profit/loss statement as a management tool for program

improvement and goal setting.B. Implements cost controls using established standards.C. Implements methods and work schedules to maximize productivity.D. Implements methods and supervises staff to minimize waste.E. Participates in the budget process by providing information for

forecasting equipment needs, repair needs and other costs when requested.

3. Ensures that all personnel responsible for meal counts and cash collections are properly trained.

A. Trains cashiers to correctly run POS.B. Trains cashiers in cash counting.C. Trains cashiers to accept prepayments. D. Trains cashiers to complete the cash closeout.E. Supervises all cashiers to ensure procedures are followed and

financial integrity is maintained.

4. Ensures that all accounting procedures are documented for meal counts, sales and cash collections.

A. Ensures compliance with established procedures.a. FRP Meal Counts.b. Prepayments.c. Cash Collection.d. Lunch Loan Program.e. Ala Carte Sales.f. Change Fund.g. Petty Cash.h. Catering.

B. Documentation is accurate, thorough, organized and “audit-ready.”

5. Ensures that all accounting procedures are documented for deposits and cash over/short.

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A. Ensures compliance with established procedures.a. Cash Closeouts.b. Bank Deposits.c. Courier Logbook.d. Bank Receipts.

B. Documentation is accurate, thorough, organized and “audit-ready.”

8.03 Cashier’s Responsibility

1. Follow the rules, procedures and expectations for handling the District and customers’ money.

2. Protects the financial integrity of the Child Nutrition ProgramA. Follows established procedures to assure accuracy.B. Follows established procedures to prevent fraud.C. Follows established security measures at all times.

3. Cashiers’ Procedures:A. Count drawer prior to start of meals.B. Record all prepayments on Record of Meals Sold form.

a. Use pen on form.b. Make corrections by crossing out mistake with one line. c. No white out.

C. Note any problems or unusual occurrences at the POS on paper for Manager. (A sample Cashier Correction form is provided in Chapter 15, which may be used by Cashiers.)

D. Each cashier (including Manager) has a separate, distinct ID for cashiering.a. Only one person uses the POS at one time.b. Each cashier signs on before using the POS.c. Each cashier signs off before leaving the POS.

4. Unattended drawers will be locked or the till will be removed before leaving the POS.

5. Holding cash in hand while cashieringA. For most regular serving lines:

a. Each transaction is keyed into the POSb. Money is received from the customer.c. Money is placed into the till.d. The transaction is tended (completed.)

B. For more fast-paced ala carte lines:a. The cashier may hold no more than 30 one-dollar bills in their hand

for making change quickly.b. All other bills are placed into the till immediately.c. Each transaction is keyed into the POS and tended (completed.)

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6. Making changeA. When the cashier receives cash from the customer, which requires

change back, the bill is placed on the POS keyboard.B. The cashier counts out the required change.C. The cashier re-counts the change while handing it to the customer.D. The larger bill is then placed into the till. E. The transaction is tended (completed.)

7. Cashier performs a Cash Closeout at the end of each meal, according to established procedures.

8.04 Change Funds Financial Change Fund check will be distributed at the Back To School

meeting. A form will be attached to the check designating the name of the person responsible for the fund and the amount of change fund that has been issued for your cafeteria. Sign the form and return it to Cafeteria Finance.

Adjustments to the change fund amount are requested through the

Area Field Specialist with final approval from the School Board. Change Fund Set-Up

Managers are responsible for the accountability of the change fund for their food service program. After meal service for the day, the change bank is prepared for the next day. The following are approved methods for the set-up of the change banks:

Basic Method1. Cashier separates and counts change fund.2. Change fund is set aside.3. Close-out is completed.4. Change fund is returned to drawer or bagged for next day

Buy Change from Another Drawer1.Prior to finalizing closeout, cashier buys change from another

cashier’s drawer. Both cashiers verify amount. Verify the cash exchanged. Both cashiers are responsible for correct totals.

2. Cashier then proceeds with "Basic Method."

Change is Pooled1. Cashiers remove an amount equal to the change fund, from their

drawer.2. Change fund is placed in central location (pooled). Total amount in

the pool equals daily total of schools change fund in circulation.3. Cashier continues with closeout.

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4. Manager buys change for the next day from: The Days Deposit The Office Change Fund

5. Manager sets up next day’s change fund(s).

All Monies Merged Together1. Cashiers complete closeout. (Count change fund and remaining

monies). 2. Manager merges all monies together.3. Manager counts and set-ups change funds for next day.4. Remaining cash is deposited.

Office Change FundManagers at the High School Level may reserve a portion of their school’s change fund in their office. This amount continues to be part of the change fund and is used to make change for the POS drawers.

Managers will verify the office change fund amount and document the total daily in one of the following ways: On the final closeout slip for the day. Adding machine tape Notebook/Log of daily verification.

8.05 Prepayments

1. Prepayments for Meals

A. Prepayment of meals protects from overt identification of free and reduced-price eligible students. PCSFS accepts prepayments in accordance with Federal, State and Local policies (7CFR 210, 7CFR 245, Florida Statutes, State Board of Education Rules and PCS Board Policy).

B. From the PCSFS Count and Collection Procedure:a. All students are encouraged to prepay money into their accounts for

meals and ala carte items.

b. Parents are notified of the prepayment service by school newsletters.

c. All cash and personal checks received for cash sales, prepayments, lunch loan repayments, catering payments or any other operational activity, are entered into the WinSNAP system and included in the bank deposit on the same day of receipt.

Occasionally, cash/checks are received after the Manager has completed the daily bank deposit. In this case, the Manager records the

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cash or check on a Prepayment form. The form and money received is secured in the Food Service safe. The payment is entered into the WinSNAP system and deposited the next business day.

Occasionally, prepayments are received for students who are not yet entered into the District’s Scholl Accountability Student Information System (SASI.) In this case, the prepayment is deposited on the day the cash/check is received. This will create an overage in the daily deposit. The Manager will make note of this on their daily reports. Meals are entered as cash transaction (paid status) at the POS. The Manager manually tracks the meals/sales to the student, until the student is entered into SASI (and subsequently the WinSNAP system.) The Manager then deducts the meals/sales to the student and enters any remaining monies onto the student’s account. This will create a shortage in the daily deposit. The Manager will make note of this on their daily reports.

2. Standardized Procedures for Prepayments

Standardized procedures have been developed in order to assist the Manager in maintaining the financial integrity of the food service program.

A. No change is given from checks presented to the cafeteria. For example, a parent writes one check for a field trip fee and prepayment of lunches. The student will be expected to cash the check with the school for the field trip and then bring the remainder to the cafeteria for their prepayment.

B. Personal checks are not cashed under any circumstances for school staff, teachers, or administrators from cafeteria funds.

C. Checks must be drawn on U.S. Banks.

D. Traveler’s Checks and Money Orders are acceptable. (These are deposited as checks.)

E. Two-party checks are not accepted for deposit.

3. Prepayment Procedures

A. Manager or designee receives cash or check prepayment from a student or parent.

B. Receipt of the prepayment is documented on a Prepayment form. All prepayments are manually documented when received.

C. Prepayment forms are available from the Central Printing Intranet site.

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(PCS- Form 3-2195.)

D. At the Point-of-Service (POS)

a. In order to assure the highest speed of service and financial accuracy during meals, it is recommended that prepayments not be taken at the POS.

b. At the discretion of the Manager, cashiers may accept prepayments during meals service as long as: All prepayments are recorded on a Prepayment form at the time

of receipt.

Prepayments are entered either: Using the Account key on the POS keyboard. Using the Prepayment key on the POS keyboard. No change is given from the checks presented by the

customer. If a customer, paying cash, requests that the change from their transaction be placed on their account, the cashier records this amount as a prepayment on a Prepayment form. The cashier will enter the amount using either the Account key or the Prepayment key.

c. The Account key on the POS keyboard: Can be used to apply funds to a student’s account. Must be used to enter lunch loans.

d. Managers will attempt to contact parents when student accounts are low or out of funds.

Recommended methods: Reminder notices given to students at the POS. (See

examples, Chapter 15.) Telephone calls directly to the parent. Other methods of notification should be pre-approved by

the school administrators.

e. Should any audit concerns arise about the accuracy or accountability of prepayments taken at the POS, the Manager will be directed to enter all prepayments at the computer only.

E. At the computer (Food Service Manager’s Office)a. All prepayments taken in the Manager’s Office are documented on

a Prepayment form.

b. In WinSNAP, two methods are available for entering prepayments EZ View Screen

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This method is most efficient when entering multiple prepayments.

See WinSNAP Manual for specific directions. Graphic Terminal

This method is most efficient when entering single prepayments.

This method can be used during meal service (while POSs are in use.)

This method provides access when the Manager is out. Entries are traceable and auditable.

Entries are documented in the Cashier Summary Report. See WinSNAP Manual for specific directions. Managers will create a graphic terminal ID called Edit

Manager, using #9999. (The Manager will choose a unique ID number for their use at the POS.)

c. The prepayments accepted in the office are then entered on the Office Close-Out Slip and reconciled with the total bank deposit for the day.

F. Scheduled periods for accepting prepayments

a. In order to assure highest speed of service and financial accuracy during meals, prepayments should be accepted before breakfast or before lunch. Managers will work with school administrators to select an appropriate period to accept prepayments. Managers will be given a sample flyer to be used to advertise

this change in procedure. Signage should also be used to communicate scheduled

prepayments periods with customers.

b. During meal service, any student who comes through the serving line with a prepayment will be politely reminded to bring their prepayment in during designated times, however, the prepayment will be accepted at that time.

c. Many Managers have found attending pre-school activities allows them to accept prepayments before the start of school year. Reminder: All prepayments must be documented on the Prepayment Form.

Prepayments accepted prior to school opening: Must be documented on a Prepayment form. Must be entered into WinSNAP. Must be placed into a separate deposit. On the first Weekly Report of the school year, the

manager will include any days before the school year on

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which they accepted prepayments.

G. End of the Day Reports

a. Prepayments, repayments of lunch loans, and funds applied to student accounts are reported in the Sales and Meals Count Report.

b. The Prepayment Summary Report no longer needs to be printed as a normal part of the daily paperwork.

8.06 Refund of Prepayment Account Balances

Refunds During the School Year

A parent may request a refund of their child's prepayment account balance if the child leaves the District during the school year. (See Request for Check Refund, Chapter 15.) The parent has the option of going to the cafeteria and receiving a cash refund from the manager or requesting a check refund through the Food Service Central Office.

The manager arranges for a check refund using one of several methods: The manager sends the completed form to Jeanne Lamoureux, Food

Service Office, WPSC. The manager sends an e-mail message, containing all of the

information requested on the refund form, to Jeanne Lamoureux. The manager completes a screen print of the child's account

balance. If this method is used, the manager signs the copy indicating that a refund has been requested and provides the parent's name and address.

Refunds at End of School Year:

Prepayment account balances will not be carried over from one school year to the next. (See End of Year Prepayment Account Request, Chapter 15.) The manager will send this form home with the child. At the end of the school year, the parent may request the following:

Send cash balance home with the child the last day of school The parent may pick up the balance from the cafeteria manager on

the last day of school Mail a check refund - (Due to administrative costs in preparing a

check, the minimum balance to refunded by check will be $5.00) Donate the balance to the lunch loan fund

If the parent does not return the signed form by the date specified, the balance will be applied to the lunch loan fund. This form must be turned in at the school

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closing meeting at the Food Service Office, WPSC if the parent requests a check refund or a donation to the lunch loan fund.

8.07 Cash CloseoutsA. Cashier:

a. Cashier signs off the POS, removes the till from the drawer, checking for any loose bills, checks or change in the drawer or under the POS.

b. All cash is to be placed into the till at the end of each meal. (Loose change, left by customers, becomes the property of Food Service and is to be included in the daily deposit.)

c. Cashiers should complete the closeout in a private area. d. The Cashier will count out and separate the change fund. Set aside for the

next day.e. Count remaining money in drawer. This is to be completed before the

computer Cashier Summary is given to the cashier. f. Complete Cash Closeout Slip.g. Remain available while manager or designee verifies the change fund and

drawer.

B. Person verifying cash drawer:a. Cashiers, including Manager, do not verify their own drawer.b. Count the change fund and cash remaining in drawer.c. Using a blank Cash Closeout Slip, complete the Cash Closeout Slip.d. With the Cashier, compare the two Cash Closeout Slips.e. If the two Cash Closeout Slips match, turn over the two Cash Closeout

Slips and the cash drawer to Manager.f. If the two Cash Closeout Slips do not match:

Recount drawer. Discrepancy is documented on the Cash Closeout Slip with error. Turn over the two Cash Closeout Slips and the cash drawer to the

Manager.

C. Manager:a. The Manager does not provide the Computer Total to the cashier before

the cashier completes their cash closeout.b. Using the Cashier Summary Report, the Manager compares the Cash

Closeout Slips to the Computer Total. c. Manager determines cash over/short for each drawer.d. Manager researches any discrepancies with Cashier.e. Manager performs edits to correct discrepancies when identified.f. If over/short is above accepted limit of $2.00 per POS, and manager is

unable to locate discrepancy, a note will be made on the Cashier Summary Report – for that cashier.

g. Managers are responsible for tracking discrepancies, correcting/training cashiers and notifying immediate supervisor of continuing concerns.

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h. If over/short is below accepted limit of $2.00 per POS, manager should attempt to locate discrepancy. If unable to find the error, the manager will accept the discrepancy.

i. All cash over/short for the weekly period are also documented on the Weekly Report.

j. Total Daily Closeout – Cash Closeout Slips will be prepared for each of the following: Breakfast Each POS at Lunch Each cash box (if applicable) Any money taken in at the Manager's office

A Prepayment form will be used to track monies. Include any monies – prepayments, catering, for example.

Closeout Total for the day. This Total is equal to the daily bank deposit.

D. Best Practices – Faster Close-outsa. Give customer back coins as change. Saves time in “rolling coins.”b. Prepare change banks early and verify. Secure in safe after first line.c. Between lines – Endorse checks and begin making deposit slip.d. Accept checks at one specific POS or early in the morning only.e. Cashiers verify one-dollar bills with each other, between lines. Wrap, strap

and initial between lines.

8.08 Deposit Procedures1. Completing the Deposit

A. Deposit Preparationa. Currency (Paper Money)

Full straps only (100 of the same denomination). No half straps. Stack bills face up.

b. Loose Coin Do not roll coins. If you have $25 or less in loose coins, place in deposit bag with

paper money and checks. If you have more than $25 in loose coins, place in a separate

deposit bag. NOTE: Bags should not be overfilled. Coin deposits should not weigh more than 50 pounds.

c. Checks Endorse checks with your stamp. Stack checks face up. Run an adding machine tape for your checks. Wrap adding machine tape around checks. Include Money Orders and Travelers Checks with your checks.

B. Deposit Ticket

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a. Prepare deposit ticket for each bag.b. Only one deposit per bag. EXCEPTION: Combo Schools with small

programs will prepare a separate deposit for each program, place each small deposit in an envelope, write the dollar amount on the outside of the envelope, and the seal envelope. Place the envelope(s) in the deposit bag.

C. Deposit Baga. Fill out the front of the bag – Customer Name (Cost Center # -

School Name) and Date in the white box.b. Fill out the space: “Said to contain herein.” This is the total amount

of the deposit(s) in the bag. c. Fill the bag:

Place loose coin on the bottom, if included. Stack the paper money, checks wrapped with adding machine

tape and deposit ticket. Secure stack with rubber band and place in bag. The deposit ticket should be visible from the outside of the bag.

d. Seal bag. (Squeeze the air out as you seal.)e. Tear off the “bag number strip” from the bag. Attach to your daily

paperwork.f. List deposit bags on courier manifest.

D. WinSnapa. Listing multiple bag numbers:

At the “Bank Deposit” screen, under “Bank Bag #”: For sequential bag numbers --Type in the entire bag number for

the first bag. Type in a “/”, a forward slash. Type in the last 2 digits of the next bag number. Continue as needed with the forward slash and last two digits of

the next bag. NOTE: If the bag numbers are NOT sequential, type in the

entire bag number for each deposit bag.b. Enter the total deposit for the day under the “Deposit” column.

2. Receipts A. Receipts for daily deposits will not be sent.B. Managers will receive a fax from the bank if there is a discrepancy

between the school’s deposit ticket and the bank’s count of the bag contents.

3. NSF ChecksA. Follow the instructions from Café Finance.B. Managers will re-deposit the NSF check using their school’s deposit

ticket.C. NSF checks are sent in a separate deposit bag.

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4. Other: Managers may continue to wrap the coins in their Change Funds if desired.

5. Ordering Banking Supplies

Banking supplies are ordered at the end of the school year, for the following year. If additional banking supplies are needed during the school year, contact the following people:

A. Deposit Tickets Ordered from Cafeteria Finance.

B. Deposit Bags, Coin Wrappers and Currency Straps Ordered from Jeanne Lamoureux, WPSC-Food Service.

C. Courier Supplies Ordered from the Courier. [email protected]

SAMPLE DEPOSIT TICKET

SAMPLE DEPOSIT BAG

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mailto:[email protected]


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8.09 Returned Checks (NSF Checks)1. Initial Notification:

A. Cafeteria Finance notifies a cafeteria manager whenever a check is returned by the bank and marked “insufficient funds”. A “Returned Check” memo is sent to the Manager.

B. Follow the procedures as instructed by Cafeteria Finance.

2. Attempts to Collect:From the Auditing & Property Records Procedure Handbook --A. Attempt to contact the maker of the NSF check by telephone and

request it be redeemed with cash, money order or other form of guaranteed payment. Document the contact attempts and the outcome.

B. Do not accept another personal check for the re-payment.

C. Keep the NSF check separate from other funds and secure in the cafeteria safe. (An NSF check is still legal tender, so must be kept secure.)

D. Food Service should solicit assistance from the school principal in attempting to collect on NSF checks. The building principal is ultimately responsible for collection, but may ask the Food Service Manager to be the person actively seeking the repayment.

3. Write-Offs:A. If all attempts to collect the money to cover the returned check fail, the

check must be written off against the cafeteria as a miscellaneous expense.

B. A memo is directed from the school principal to the Director of Accounting, requesting that a check be written off. The NSF check and original memo from Cafeteria Finance should be attached to the memo from the principal.

C. When this step in the process occurs, Cafeteria Finance will notify the Food Service Central Office of the accounting journal entry that was used to write off the check.

8.10 Courier Procedures1. Loomis, Fargo Manifest

A. Sample of Loomis, Fargo Manifest B. NOTE: Managers complete only the red/pink areas, noted by the

squares below.

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B. The Loomis, Fargo Driver will complete the Pickup Messenger line, including his/her signature.

C. Manager will keep the second copy for their records. The remaining three copies go with the Driver.

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MANAGER’S SIGNATURE

Bank Bag Number.

Deposit Amount in one Bag.

DO NOT

use this area.

Total dollar

amount of deposits

listed above.

Total number of bags listed

above.

YOUR SCHOOL

YOUR SCHOOL STREET ADDRESS

BANK OF AMERICA

MAIN VAULT

TAMPA

YOUR SCHOOL CITY

Ex:123455

DATE OF PICK-UP.

Manager Signs at Pick-up.

(Do not Pre-sign the Manifest.)


2. Courier Pick-upsA. Armored car services are provided for the bank deposits.B. The courier schedule is as follows:

Daily High Schools, Administration Building Cafeteria Monday, Wednesday, Friday Middle SchoolsTuesday, Thursday Elementary Schools, Exceptional CentersFriday WPSC Cafeteria

C. When the courier arrives, the Manager will verify the courier identification, then unlock the safe and remove the deposit(s) and manifest.

D. Managers should not hold any deposit bag for any reason.

E. The courier will take the deposit bag(s).

F. Both the Manager and courier will sign the manifest.

G. If the courier misses a pick-up, the Manager will call Loomis, Fargo & Co. at (813) 223-6822.

H. The Manager will also send an e-mail to Jeanne Lamoureux regarding the missed pick-up. In the event a charge appears on the invoice from Loomis, Fargo & Co. for the missed pick-up date, the Manager’s e-mail will be forwarded to the billing department of Loomis, Fargo & Co. It will serve as documentation for a credit.

I. After sending the e-mail to Jeanne Lamoureux regarding a missed pick-up, print a copy of the e-mail and file it with your Loomis, Fargo & Co. manifest copies.

8.11 Weekly and Monthly Reports – Schools1. The Weekly and Monthly Reports are a summary of the daily reports

generated during the period.

2. Managers generate a weekly and monthly report according to the schedule listed on the Composite Calendar.

3. Managers/Satellite Kitchen Coordinators keep a full copy of the Weekly /Monthly Report with their paperwork for the period.

4. Managers/Satellite Kitchen Coordinators send a full copy of the Weekly /Monthly Report to their Area Field Specialist.

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DATE OF

Manager Signs at Pick-up.

(Do not Pre-sign the Manifest.)


5. On a Monthly basis, (follow the Composite Calendar), Managers send a partial report to Cafeteria Finance.

A. This report is sent to: Cafeteria Finance, Administration Building.B. Satellite schools that generate their own WinSnap Monthly Report,

may send their report directly to Cafeteria Finance (it does not have to go to the Production School first.)

C. This report includes:a. PCCOUNTb. PCCASH 1c. PCCASH 2

D. Managers attach the corresponding copies of the bank deposit slips to the monthly report.

E. If the Monthly Report includes catering deposits , the Manager/Satellite Kitchen Coordinators includes a copy of the Catering Request form. Monies deposited as “Catering” submitted without a matching Catering Request form, will be transferred to “Miscellaneous Revenue.”

6. Managers will summarize excessive overage/shortages on the Weekly and Monthly Reports with the notation – “See daily reports concerning overage/shortage.”

7. Managers must be sure that all information appears and is correct on the Monthly Report – before sending it to Cafeteria Finance. Cafeteria Finance does not accept corrected reports. Any corrections needed after the report has been sent to Cafeteria Finance must go through the Area Field Specialist.

8. Cafeteria Finance will be responsible for entering the data from the Monthly Reports into TERMS. This information is used to reconcile with the monthly bank statement, consolidate all reports and prepare the monthly reimbursement request from the USDA/DOE.

9. Timely and accurate Monthly Reports are critical. Late reports result in delays in closing the Department and District’s finances, delays the application for reimbursement, and create a loss of revenue from interest earned on the reimbursement. Inaccurate reports create the need to submit a revised claim to the State. Penalties may occur against the District for repeated or frequent revisions.

8.12 Inventory1. Timely & accurate entry of ending physical inventory levels is extremely

important for financial accountability.

2. Managers are responsible for maintaining a perpetual inventory and taking a physical inventory at least once a month throughout the school year.

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3. As noted on the Composite Calendar, a physical inventory is taken on the last business day of each month beginning in August and ending with the close of the regular school year in May.

4. Managers operating school sites in the summer term should consult the summer school calendar.

5. After the monthly physical inventory is reported, food, commodities, paper goods and supplies are reported as usage in the Profit & Loss Statement.

6. Usage is calculated as:

Beginning monthly inventory levels+ Delivery amounts received during the month- Ending physical inventory levels reported = Usage for the period

7. Inventory Example:Results when Inventory is:

Correctly Stated

Overstated Understated

FOOD FOOD FOOD

+ Beginning Balance 1,387.45 1,387.45 1,387.45+ Deliveries 486.25 486.25 486.25- Ending Balance 1,293.47 2,648.57 586.13= Usage 580.23 -774.87 1,287.57

8. Overstating inventory is reporting more than is actually present.

9. Understating inventory is reporting less than is actually present.

10. Inaccurate ending inventory creates an incorrect usage report for the period, particularly for food & commodities, which together are one of the largest expenditures for the CNP.

8.13 Travel – In County ReimbursementIn-County Travel Vouchers (PCS Form 3-1090-A) should be filed for reimbursement at least quarterly. Due to the verification process required in Cafeteria Finance, it is requested that the reimbursement period cover no more than three calendar months.

Round each trip to the nearest whole mile. If your destination is not a school board site, include the address of the site on your travel reimbursement report. You will be reimbursed at the maximum per mile allowance specified in Florida Statutes. The

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current reimbursement rate is: $0.405 (forty and one-half cents) per mile. Send the form to your Field Specialist for processing. Use the following coding:

FUND FUNCTION OBJECT CENTER PROJECT

Travel 0410 7600 0331 XXXX 9502 (Enter your own cost center on the requisition.)

Travel Voucher forms are available online through the PCS Intranet, under the Central Printing Department link, # 3-1090-A. The forms may be downloaded and printed.

8.14 OUT-OF-COUNTY TRAVEL REIMBURSEMENTOut-of-County Travel Vouchers (PCS Form 3-1090-B) should be completed immediately following your trip. All reimbursement for the use your own vehicle for out-of-county travel will be computed based on the Florida Department of Transportation or AAA mileage charts. Original invoices, itemized folio for lodging expenses, and original receipts are required for reimbursement. If an original receipt is not available, provide a note documenting the expense signed by the immediate supervisor of the employee. This note will be acceptable documentation for reimbursement. Send the forms to your Field Specialist for processing. Use the following account coding:

COST FUND FUNCTION OBJECT CENTER PROJECT

Travel 0410 7600 0332 XXXX 9502 (Enter your own cost center on the requisition.)

8.15 Temporary Duty Elsewhere (TDE’s)Temporary Duty Elsewhere, PCS Form 3-650 is to be completed when an employee travels outside of Pinellas County. This form authorizes expenses for the employee, states the name, location and date of the activity as well as the purpose for attending. The Food Service Office secretary at Walter Pownall Service Center will maintain the TDE file.

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8.16 Payroll Procedures1. Overview

A. Managers are responsible for accurate and thorough documentation/ reporting of payroll.

B. Pinellas County Schools uses an exception payroll system.a. Each regular employee is contracted for a specified number of

hours per day.b. If an employee works his/her specified number of hours each

day during the pay period, nothing needs to be reported.c. Only exceptions to an employees regularly scheduled hours

are reported.C. Payroll is reported according to the District’s payroll calendar. The

run number and payroll entry due dates are listed on the Composite Calendar.

D. Contract year. Managers, Manager Interns and Kitchen Coordinators running schools are on contract for 10-months (196 days.) All other school-based employees are on contract for 9-months (192 days.) Central Office staff is on contract for 12-month (247 days.)

2. Timesheets A. Managers will post a timesheet to be used to document hours

worked every pay period. B. Timesheets are posted in an area, which can be supervised.C. Each person working for the Child Nutrition Program is listed on the

timesheet, including the Manager.D. Each employee records his or her arrival and departure times at

his/her arrival or departure.E. Timesheets (SL 205) are available from the Central Printing Intranet

site (#3-1018.) Other versions of an acceptable timesheet are available in Chapter 15.

3. Time Clocks A. Schools with time clocks post a completed schedule displaying each

employees work hours.B. Employees punch his/her own time card.C. Employees punch their card for each arrival and departure.

4. Temporary Duty Elsewhere (TDE) A. TDE occurs when an employee is on duty, but not at his/her

regularly assigned location.B. Employees who leave their school during the day must sign out

using school-approved procedure. C. Employees who leave their school during scheduled hours, to tend

to non-work related activities must document the time as exceptions (Personal or Sick time) for his/her payroll.

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D. Employees who leave their school during their unpaid 30-minute lunch break, to tend to non-work related activities do not need to document the time as exceptions, but must sign out using school-approved procedure.

E. Examples:a. Manager leaves school to bring food orders to WPSC – Sign

out using school-approved procedure. b. Employee goes to neighboring school to borrow 6-

compartment trays – Sign out using school-approved procedure.

c. Employee goes to his child’s school after receiving phone call from the school nurse – Sign out using school-approved procedure and document absence on timesheet. Complete a Certificate of Absence form.

5. Payroll Exceptions A. All exceptions to regularly scheduled time are documented on the

timesheet on a daily basis.

B. Absencesa. All absences, including late arrivals or early departures, are

recorded on the timesheet.b. A Certificate of Absence form must be completed, signed by

the employee and Manager and sent to Payroll.c. If the Certificate of Absence is for the Manager, the Principal or

designee must sign.d. If the employee is unavailable to sign the Certificate of

Absence form, the Manager retains the form. The absence is entered into the payroll system, as scheduled. The Manager writes an ”R” in the upper right corner of the form, indicating that the exception has been “reported”. After the employee signs the form, it is then sent to Payroll.

e. Certificate of Absence forms are submitted for all absences, including Leave of Absence and absence due to Workers’ Compensation injury. NOTE: A copy of the Certificate of Absence is sent to the Workers’ Compensation Department in Risk Management. Also, check the appropriate box on the form for Workers’ Compensation – “Illness/Injury in the Line of Duty.”

f. Certificate of Absence forms are available from the Central Printing Intranet site (#3-135.)

C. Extra Time / Over Timea. Pre-Approval

Any time worked over the regularly scheduled time requires pre-approval from the Area Field Specialist.

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Failure to obtain pre-approval for Extra Time or Over Time may result in disciplinary action for failure to comply with District Policy.

Pre-approval is accepted as an email message to the Area Field Specialist with a “CC” to the Principal.

The message must contain a request for time above the regular scheduled hours, a reasonable estimate of the amount of time needed and a valid reason for the overtime.

The Area Field Specialist will reply to the request – with either approval or denial. This reply will be sent to the Manager with a “CC” to the Principal. Should the reply from the Field Specialist come after the payroll due date, the Manager will submit the additional time in the next pay period.

Principals have been informed that documented pre-approval must accompany all requests for pay above the regular scheduled hours. The Principals have been asked to not approve any payroll above regular hours without valid, documented pre-approval.

Should any employee work time above their regular schedule and they are paid for that time without pre-approval, a payroll adjustment may be submitted by Food Service.

Documentation of the pre-approval must be maintained with the payroll reports to which it applies. Documentation justifying the need for overtime must be maintained with the pre-approval request.

b. All hours worked above regularly scheduled time is reported as E1 or E2 depending on which week of the pay period the hours were worked.

c. Extra Time (ET) is additional hours worked up to 8 (eight) hours per day. ET is scheduled in accordance with District Policy (SEIU

Agreement, Article 3.A.13, pg 44.) ET is documented on the timesheet. This is the only

record of extra time prior to entering payroll. ET is paid at the employee’s regular pay rate.

d. Over Time (OT) is time above 8 hours per day, 40 hours per week or 80 hours per pay period. OT is paid at the rate of time and a half per hour. OT is not scheduled on a regular basis. Over time must be approved by the Area Field Specialist

before OT is worked. The School-based Administrator or designee verifies that

pre-approval has been obtained before the OT is entered into payroll.

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NOTE: Employees with dual positions who work a total of 8 hours per day (4 hours in Food Service and 4 hours Plant Operations, for example) are paid at the OT rate if they work any extra time.

D. Payroll Exceptions Not Previously Reporteda. A Payroll Adjustment form is used to report any exceptions not

reported during prior pay periods.b. Payroll Adjustment forms are available from the Central

Printing Intranet site (#3-2260.)c. Payroll Adjustment forms are not used to report Food Service

Substitute hours without prior approval from Payroll.

E. Additional Dutya. Additional Duty (AD) is time scheduled outside of the regular

contract year.b. The Manager requests AD at the close of the school year.c. AD is scheduled for the beginning or end of the school year,

under special circumstances.d. The Area Field Specialist reviews and approves each

Additional Duty request on an individual basis. e. Managers are not authorized to schedule employees outside

of their contract year, without approval for additional duty.

F. Reimbursement for Extra Time Associated with a School Eventa. When a Food Service employee works above their regularly

scheduled hours, for a school or District sponsored event, the Manager reports the time in Payroll.

b. A reimbursement for the costs of labor & benefits is expected from the sponsor of the event. The Manager does the following: Managers send a copy of the payroll exception TERMS

screen to Jeanne Lamoureux, WPSC – Food Service. Indicate the name and date of the event and the total

number of hours each person worked at the event. If the reimbursement is made by check and sent to the

Central Office, notification will be sent to the Manager. If the reimbursement is made by journal entry from a

department in the District, for example the Title One office, notification is sent to the Manager when the journal entry is posted.

6. Health/Life Insurance Benefits A. Health and Life Insurance Benefits are paid according to the coding

for the primary position.

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B. If an employee has two or more jobs in which the total hours qualifies him/her for benefits, the cost will be paid from the primary job coding.

C. These costs are pro-rated and transferred by journal entry, (manually from the Food Service Central Office), to the other accounts at the end of each month.

7. Roving Managers/Specialists’ Salaries

A. The salary and benefit expenses for the Roving Managers and Roving Specialists are charged to the schools according to the days and hours recorded at the Central Office, in the Rover’s Assignment Book.

B. A charge-back is recorded on each payroll date.

8. Electronic Payroll Entry A. All Managers have received District training on the electronic payroll

system. The Payroll Training Guide is available from the Payroll Intranet site: http://pcs.pinellas.k12.fl.us/payroll/User%20Guides/PRTrainingGuide.pdf

B. Authorization and online permissions are set for the Manager at the school level.

C. After entering the Food Service payroll, the Manager submits the information to the Principal or designee.

D. Effective July 2004, the Manager will submit his/her time to the Payroll person at his/her school, typically the School Secretary. A timesheet will serve as documentation for the hours reported. This can be a separate “Manager Only” timesheet or a copy of the kitchen timesheet with the Manager’s hours highlighted.

E. Managers will enter payroll for their staff including Substitutes.F. Managers receive a Payroll Turnaround Report via email from

payroll after submission. This report is printed and used to confirm that all paychecks have been received and that the gross amount of each check is correct.

G. Substitutesa. Food Service Substitutes are entered into the electronic payroll

system on a separate screen (C12.)b. Managers will contact their Payroll Clerk if they have difficulty

entering a Substitute’s Social Security Number.c. Prior approval is needed from payroll before submitting a

paper payroll adjustment form for a Food Service Substitute.

9. Paychecks A. Paychecks are sent to the employee’s cost center location unless

otherwise indicated.B. Direct deposit is available to all employees.C. Managers compare paychecks to the Payroll Time Report as noted

above.

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10. Record keeping/Audit A. All documentation relating to payroll is retained for three years, (in

addition to the current year.) This includes:a. Timesheetsb. Certificate of Absence formsc. Payroll Adjustment formsd. Payroll Time Reportse. Food Service Overtime Pre-Approval formsf. Leave of Absence documentsg. Worker Compensation documentsh. Requests for Additional Dutyi. Other payroll related documents

B. Payroll audits may be requested.

8.17 Petty Cash Petty Cash fund checks will be distributed at the Back To School meeting. A form will be attached to the check designating the name of the person responsible for the funds, the amount of change fund and/or petty cash that has been issued for your cafeteria. Sign the form and return it to Cafeteria Finance. If the form is not returned, petty cash fund reimbursements will be held up until Cafeteria Finance receives the signed form.

Adjustments to the amount of Petty Cash fund are requested through the Area Field Specialist with final approval from the School Board.

The Internal Auditors will audit petty cash during the school year. It will be an unannounced, random audit. The receipts and cash should equal the Board approved amount of your petty cash fund. Keep copies of all reports and receipts submitted for reimbursement.

Petty cash is not to be used as a change fund.

Cash advances are not to be made to an individual in order to purchase an item. The individual making the purchase should use their own funds (cash, personal check or credit card) and submit the receipt for reimbursement.

Requests for reimbursement to the petty cash fund should be made on a timely basis. For example, if your petty cash fund is $50 and you have receipts for $25, submit a request for reimbursement. You do not have to make your petty cash fund last all year.

Authorized petty cash purchases are not to exceed $100.00. Multiple purchases of like items, with a unit value of less than $100.00 are not permitted if the total of the entire purchase exceeds $100.00.

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IMPORTANT: There is no legal requirement to replenish for purchases in excess of the Board approved petty cash fund. If you make purchases out of your own pocket that exceed the amount of the petty cash fund, you may consider it a donation to the program. Requests for employee reimbursement above the Board approved amount of your petty cash fund will not be processed.

The petty cash fund and receipts are kept in the cafeteria safe.

All purchases must serve the Child Nutrition Program. Theme decorations for the cafeteria and serving line are allowable.

Candy purchases are allowable if the candy serves a decorative purpose such as candy sprinkles on cakes. State on the petty cash reimbursement form that the candy has been purchased for decorative purposes.

Purchases for decorations to be used in the staff cafeteria are not allowable. Reimbursement for purchases of tablecloths, flowers, etc. for the staff cafeteria will be denied.

You may purchase items to be used for catering events. Items such as flowers, ice for sculpture, or special decorations are to be listed on the special dinner request form and the price of such items must be included in the total cost of the event. Attach a copy of the special dinner request form to your petty cash reimbursement report in order to document the purchase of the special item. If you run into any problems with the amount of your petty cash fund, an increase can be requested to accommodate your catering activities.

Purchases are to be made through the approved vendors. “Day-old” bread purchases are not allowable. If an emergency arises and you run out of bread, you may purchase bread from Publix, Albertson’s, Winn Dixie, etc. The nature of the emergency must be stated on the petty cash reimbursement form.

Petty Cash should not be used for bid items such as bread, milk, juice, paper goods or chemicals.

Office supply items must be ordered through the warehouse catalog.

Receipts are to be marked “paid” and signed by the person receiving the reimbursement from petty cash.

Take care when submitting receipts for reimbursement. Do not include items such as bottles of Zephyrhills water, Coke or Pepsi that you purchase for yourself when you are shopping. These types of items should not be submitted for reimbursement and such requests will be denied.

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Do not submit receipts for full reimbursement when an item on the receipt has been marked as “returned for refund” by the store.

Order your First Aid supplies through the Warehouse catalog. Do not purchase any medications that are not listed in the First Aid section of the catalog.

Do not purchase small equipment with petty cash. If the item you need for your cafeteria is not available from the Small Equipment Catalog, notify your Field Specialist. The Field Specialist will initiate the requisition for the small equipment item.

Petty Cash Expenditure ReportYou will find a sample copy of the Petty Cash Fund Expenditure Report in this procedure manual. Procedures are listed on the back of the report form. Outdated Petty Cash Fund Expenditure Reports will not be accepted for processing. The current form is available through the PCS Intranet, under the Central Printing Department link. It can be downloaded and printed.

Common Errors The following list indicates areas where errors are commonly made on the Petty Cash Fund Expenditure Report.

Complete the report in ink. Blue ink is best. Reports submitted in pencil are not acceptable.

Enter your name and title. Enter the date the report is being submitted. Enter your school name, address, city and ZIP code. An original signature of the petty cash custodian is required . Blue ink is best. Check one or two:

Check “1” To request a reimbursementCheck “2” To close the petty cash fund. All three lines should be

completed when closing the fund. Make a separate deposit of any remaining petty cash and include the deposit in your weekly report.

List of Items. List the items that were purchased. A store name is not an acceptable description.

Record the receipts in date order on the report, and attach the receipts in date order. Staple the receipts to the report. Do not paperclip the receipts to the report.

Coding: Fund 0410, Function 7600 and Project 9502 are common to all school cafeterias. Enter your own cost center number. The object may vary depending on the type of item purchased. Use the following object codes:

0510 Supplies0512 Paper Goods0570 Food

If one receipt contains two types of items, split the receipt and report it on two lines with the appropriate object code.

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You may receive reimbursement for sales tax. If a receipt is split as noted above, apply the sales tax to the appropriate items. It is not necessary to write a separate line for sales tax.

Approval NeededSend your Petty Cash Expenditure Report to your Field Specialist for approval. If the report is sent directly to Cafeteria Finance for payment, it will be returned to the Food Service Office for approval.

Petty Cash Reimbursement CheckManagers may cash their Petty Cash Reimbursement check using their daily sales. An accurate and thorough audit trail must be maintained.

o The Manager will endorse the Petty Cash Checko Remove the cash from the day’s saleso Enter the Petty Cash check on the daily deposit slipo Include the Petty Cash Check in the daily deposito Document the Petty Cash check on the final closeout slip for the

day.

Easy Procedure For Keeping Track Of Petty Cash Begin a petty cash form after you have purchased your first item. Sign the receipt and paper clip to the form. Keep form with the remaining Petty Cash monies. Continue filling in form and attaching receipts. When approximately half of your Petty Cash money is spent:

Review form (be sure all items are properly coded) Place all receipts in date order (Oldest on top) Staple receipts to upper left corner Sign the form Make a copy of the completed report and receipts for your records Send original form and receipts to your Area Field Specialist Reimbursement check will be sent from Cafeteria Finance.

8.18 Profit and Loss StatementsIntroductionThe profit & loss statement is a valuable financial report for School Food Service managers and administration. The P/L indicates how the CNP is doing financially. Pinellas County School Food Service provides P/L statements monthly. All profits generated must go back into the school food service program.

Statement GroupsProfit & Loss statements are generated for the following groups:

Individual schools by cost center*

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Production Level (Madeira Beach Elementary & Middle, Walsingham Elementary and Southern Oak Elementary.

Elementary Level (All EL combined) Middle School Level (All MS combined) High School Level (All HS combined) Exceptional/Alternative School Level (All Excp/Alt combined) Administration & WPSC Cafeterias Summer Vending Program Countywide (All Cost Centers combined)

*Production Schools with Satellite Schools receive a copy of their satellite’s P/L as well as the appropriate level report for each satellite.

Frequency of P/L Statement The P/L Statement is generated monthly, July 1 through June 30. Statements are generated for the prior month after the department

and District have completed the financial closing.

Organization of Information in P/L Statement The P/L statement shows the Daily Average for each section of the

report. Daily Average is calculated as the Total divided by number of Operating Days.

The P/L statement shows the financial activity for Year to Date (YTD). Year to Date is from the first day of operation (July 1) to the end of the current period.

Information is organized by Actual Count or Value (Number of meals sold or number of dollars earned or spent.)

The Percent of Total is also provided (Percent of total reimbursable meals served or percent of total revenue.)

Sections in the P/L StatementThe Profit & Loss statement is divided into the following sections, starting from the top:

1. Identifying Information2. Reimbursable Meals Served, including Meal Equivalents3. Revenue4. Expenditures (Expenses), including Program Overhead5. Profit or Loss6. Breakeven Point Analysis

Section #1 – Identifying Information The header information shows:o School Name

o Date Range of the Statement

o Cost Center o Areao Number of Days Served

o Enrollment

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EXAMPLE:

Section #2 – Reimbursable Meals Served, including Meal Equivalents The information is taken from Monthly Reports. School enrollment figures are updated from the Monthly Reports. Number of Student meals sold are reported by category- Free,

Reduced and Paid. Adult sales are reported by Meal. Catering, Ala Carte and Miscellaneous Sales are reported as total

dollars. Numbers of meals reported are Year to Date (YTD). The Daily Average

is calculated as YTD divided by Number of Operating Days. Each Meal Equivalents are calculated using the FUNDamentals Model

(See Chapter 4) and the Daily Meal Equivalents are noted in the right column.

Participation is reported as a percent of enrollment. The formula for participation is:

Total number of meals served / Number of days YTD / Enrollment

Use of information:o Identify trends in participation as the school year progresses.o Comparison of participation between schools of similar sizes,

school & grade entire level and school & countrywide.o Identify potential areas for improvement or growth.

Example:

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Section #3– Revenue Revenue is the inflow of cash while doing business. Information is taken from Federal & State reimbursement received,

inventory and monthly reports. Sources of revenue for Pinellas County School Food Service are:

Federal Reimbursement – Lunch Student Lunch – paid & reducedFederal Reimbursement - Breakfast Student Breakfast – paid & reducedFederal Reimbursement – Snack Adult Breakfast/LunchUSDA Commodities Ala Carte LunchSummer Food Service Program Ala Carte BreakfastState Supplement - Breakfast After School SnacksState Supplement - Lunch MiscellaneousState - Miscellaneous CateringInterest on Investments Cash Over

Sale of Junk

Percent of Total Revenueo The dollar values of all sources of revenue are added

together to find the Total Revenue.o Each individual source of revenue divided by the total

revenue provides the percent of total revenue.o The sum of all percent of total revenues always equals

100%.o The percent of total revenues identifies those sources that

provide the greatest to least amount of revenue to the program.

Percent of total revenue – ranked highest to lowest (Period ending 05/31/05):

Source Percent of Total RevenueFederal Reimbursement – Lunch 38.94%Ala Carte Sales 23.53%Student Lunch – Paid 18.23%Federal Reimbursement – Bkfst 9.36%Commodities 5.52%Food Service Supplement - Lunch 0.95%Federal Reimbursement – Snack 0.76%Food Service Supplement - Breakfast 0.72%Adult Lunch and Bkfst 0.51%Student Snacks 0.49%Miscellaneous 0.41%Student Bkfst – Paid 0.39%Catering 0.19%Total 100.00%

Use of information:

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o Identify trends as the school year progresses.o Comparison of revenue between schools of similar sizes, school &

grade level and school & countrywide.o Identifies areas for improvement.o Identifies which areas may have biggest potential and largest

payoff when focused on improvements.o Provides budgetary information.

Example:

Section #4 – Expenditures (Expenses)

Expenses are costs incurred while doing business. Information is taken from:

o Invoiceso Inventoryo Warehouse Requisitionso Charge backso Journal Entries

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Expenses for Pinellas County School Food Service include:

Salaries PaperFood Services Substitutes FoodRoving Manager/Specialists CommoditiesBenefits A/V MaterialsConsultants Building & Fixed EquipmentTravel & Registration Equipment (over $750)Repairs & Maintenance Equipment (less than $750)Rentals Computer EquipmentCommunications (Phones & Pagers) Motor VehiclesPostage Remodeling & RenovationsWater SoftwareSewer Dues & FeesGarbage & Trash Sanitation CertificatePurchased Services Miscellaneous ExpenseNatural & Bottled Gas ELKE Work Order ChargebacksElectricity NSF ChecksGasoline & Diesel Cash ShortSupplies Program Overhead

Expenses as a Percent of Total Revenueo Identifies how much of the total revenue earned is used to

pay each expense.o Indicates whether the revenue is adequate to cover

expenses.o Formula:

Dollar value of the expense divided by total revenue

Expenses as a Percent of Total Revenue – ranked highest to lowest (Period ending 5/31/05):

Expense Percent of Total RevenueSalaries 32.20%Food 30.73%Benefits 10.24%Program Overhead 8.23%Commodities 5.12%Paper 2.80%Electricity 1.01%Supplies 0.98%Other 0.82%Equipment (over $750) 0.58%Repairs & Maintenance 0.51%Purchased Services 0.41%ELKE Work Order Chargeback 0.37%

Total 94.01%

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Department Standards for Expenses as a Percent of Total Revenue

Labor and BenefitsLabor/ Benefits and Food/Commodities together should not exceed 80%.

40%

Food and CommoditiesCommodities – should be approximately 25% of the food used in a reimbursable lunch/breakfast program

40%

Direct Overhead Items purchased for the individual program. For example – Electricity, Purchased Services, Computer Equipment, Paper, Repairs & Maintenance, etc.

6%

Equipment (Total) 1%

Program Overhead Purchases occurring district wide & shared by all cost centers

11%

Final Profit 2%

Total 100%

Importance of Accurate Inventory o Food, commodities, paper goods and supplies listed in the Profit

& Loss Statement are reported as the usage for the period.

o Usage is calculated as:

Beginning monthly inventory levels

+ Delivery amounts received during the month

- Ending physical inventory levels reported

= Usage for the period

o Inaccurate or late ending inventory creates an inaccurate usage report for the period, particularly for food & commodities, which together are one of the largest expenditures for the CNP.

o Inaccurate or late ending inventory also lead to invalid P/L statements for grade levels and countywide.

o Timely & accurate entry of ending physical inventory levels is extremely important to the Profit & Loss statement.

Program Overhead o Program overhead are the costs incurred from the District and

from operating the Central Office.

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o Program overhead include food service costs, which are not directly tied to a specific school cost center.

o Total program overhead is prorated (divided up) and applied to schools based on revenue.

o Each school’s share of program overhead is provided in actual dollars and as percent of total revenue.

o Program overhead may fluctuate month to month, due to the numerous sources, however the YTD figure is typical of the overall expense.

o Sources of Program Overhead include:o Food Service Central Office – Salaries & fringe benefitso Warehouse - equipment, vehicle maintenance, gasoline, dieselo Postageo Media Services - A/V tapeso Salaries & fringe benefits for employees in other departments:

Cafeteria Finance (four accounting clerks - 100%) Accounting Supervisor (one position - 41.3%) Institutional Services - (three positions - one at 75% and

two at 25%) Maintenance - (one position - 100%) Pest Control - (three positions - 66%) Warehouse - (six positions - 100%)

o New vehicle purchases - satellite vans, refrigerated truckso Commodity processingo Rentals - off-site warehouse, copier, pagerso Conference travel expense for eligible employeeso Consultantso WinSnap technical supporto Temporary employee services -for free and reduced

applicationso Marketingo Food Service resource room

Use of information: Identify areas that are in line with department standards. Identifies areas that are out-of-line (too high) with

department standards. Identify trends as school year progresses. Identifies problems, sudden changes or errors. Comparison of expenditures between schools of similar

sizes, school & grade level and school & countrywide. Provides budgetary information.

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Example:

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Section #5 – Profit (Loss) Formula: Total Revenue – Total Expenditures = Profit or Loss Use of Information:

o Provides a “bottom line” measure of the individual cost center, school level or countywide financial status taking into account all revenue, expenses and program overhead.

o Quick reference point of how well the unit is doing for the given time period and year-to-date.

o Identifies areas for improvement.

Example:

Section #6 – Breakeven Point Analysis The Breakeven point is the position when Total Revenue = Total

Expenses. That is, the point when enough revenue is earned to cover all expenses.

On the P/L Statement, the breakeven point is stated in daily revenue and daily meal equivalents.

The Breakeven Point is calculated as:

Fixed Costs ($FC) / 100% - Variable Costs (%VC)

Fixed Costs are the expenses that are constant for the program. These expenses that are the same or nearly the same each month, no matter how many meals are served. Fixed Costs include: Labor, Benefits, Utilities, Gas, Diesel and Program Overhead. In the Breakeven Point Analysis, Fixed Costs are stated in dollars.

Variable Costs are the expenses that change month-to-month. These expenses will fluctuate, up or down, depending on the number of meals served. Variable Costs include: Food, Commodities, Paper, and Supplies. In the Breakeven Point Analysis, the Variable Costs are stated as a percentage of total revenue.

The Breakeven Point stated as Daily Revenue can be compared to the Total Daily Revenue.

The Breakeven Point stated as Daily Meal Equivalents can be compared to the Daily Meal Equivalents.

If the Breakeven Point is below the Daily Revenue/Meal Equivalents, the program is losing money. Three options are available:

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1. Reduce Fixed Costs – Decrease labor, adjust staffing for better productivity, use energy conservation measures as much as possible.

2. Reduce Variable Costs – Follow the menu, watch portion sizes, avoid excessive inventory to decrease food costs, conserve on paper, use the dish machine, use chemicals properly, etc.

3. Increase Revenue – Promote your program to attract students, seek out catering opportunities at the school, promote/add a breakfast program, etc.

Example of Breakeven Point Calculation :

Example from P/L statement:

Use of Information:o Quick reference point of how well the unit is doing on a daily basis.o Provides a potential goal for under-achieving programs.o Identifies areas for improvement.

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8.19 Office Security

A. Safe Combination1. Combination to the safe must remain secure.

a. Location at the school – Front Office in sealed envelope with Principal/Bookkeeper.

b. Sealed envelope with Jeanne Lamoureux.c. No one outside of Food Service (other than a School

Administrator.)d. Not posted or written where another person may see it.e. Not filed in Roving Manager information.

2. The combination will be changed:a. When there is a change of Manager.b. When it is determined that too many people know the combination.c. After any irregularities in accountability or security.d. At the Manager’s request.

B. Safe is kept locked during day1. Close the door and spin the dial. 2. Manager opens it for courier.3. All deposits are locked in the safe.4. Petty cash fund and receipts are kept in the safe and separate from

other monies.5. Change fund(s) are kept in the safe when not in use.

C. To avoid co-mingling of funds, only Food Service funds are to be kept in the Food Service safe.

D. No monies are to be left out in the open, unattended, at any time.

E. No checks, including NSF checks, are to be left out in the open, unattended, at any time.

F. The Manager’s Office must remain closed, preferably locked, during the day.

G. The back door should remain locked during the day.

8.20 Audits and Reportso Cafeteria Finance. Cafeteria Finance performs an audit of the monthly

reports by reconciling the daily deposit tickets to the amount of the deposit indicated on the report. Cafeteria Finance also verifies that the correct numbers of days are reported on the PCCOUNT, PCCASH 1 and

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PCCASH 2 sections of the monthly report. After the monthly reports are reconciled, they are posted in TERMS and the revenue is credited to each cafeteria. At the end of each month, a summary report is run indicating the total number of meals served. This data is the basis for the federal claim for reimbursement.

o Cash Management. At the end of each month, Cash Management reconciles the bank statement to the daily deposits as reported via the monthly reports. Any discrepancies are noted and posted to the cafeteria’s account in TERMS.

o PCS Auditing & Property Records Department. The School Board’s Auditing Department incorporates the cafeteria program into the school’s internal audit visit. On a rotating basis each food service program is reviewed every two years. The auditors focus on three areas – procedures, security and processes. Initially, a letter of notification is sent to the manager requesting the items needed for the audit be available. The day before arriving a telephone call is made to the manager. The auditors observe service, cashiering, cash handling, and banking preparation. They review daily reports, edits, second lunches, end of day procedures, edit checks, lunch loans and deposit preparation. The auditor will hold an exit conference with the Manager, Principal and Field Specialist. A narrative review of their findings and recommendations is prepared and forwarded to the Director of Food Service after the review is completed.

o Legislative and Independent Auditors. The Food Service Program is included in the School District’s annual audit.

o Office of Program Policy Analysis and Government Accountability (OPPAGA.) The OPPAGA office is a special branch of the Florida Legislature, which reviews state agencies, including school food service. Their goal is to help improve the performance and accountability of state government. The review cycle is every five years.

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Chapter 8 - Financial Accountability

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