Financial Management

Counting & Claiming

• Meals are counted at the point in the food service operation where it can be accurately determined that reimbursable free, reduced-price, or paid meals have been served to eligible students.

• Meal counts are reported to your director by category.

Non-Program Adults

• Meals served to adults are neither eligible under the authorizing legislation for the School Lunch & Breakfast programs nor do they earn commodity assistance.

• The school food authority must ensure that all revenue earned by the CNP does not subsidize program meal served to adults.

Adult Meal Price

• Price of full paid child meal + Federal reimbursement + Value of commodities

Counting Money

• ALWAYS have 2 people count the money in an enclosed place.

• Store money in school safe at night.

• Divide the responsibilities for record keeping and counting money. Do not let one person handle both tasks.

Daily Edit Checks

• Inaccurate meal counts can cause loss of reimbursement

• POS system automates this process

• Calculated daily

Internal ControlsCustomer Theft

• Train staff about theft on the serving line

• Place cashiers at exit of the serving area

• Place a la carte before cashier

Internal ControlEmployee Theft

• Take a daily inventory of pre-packaged items

• One person to a cash drawer

• Keep the cash drawer locked

• Count money after each meal

• Deposit money daily

CNP Revenue

• Reimbursement (free, reduced, & paid students)

• Adult meal sales

• A la carte

• Extra meals/components

• Catering

• Special school functions

CNP Revenue

• Commodities

• Subsidies

• Interest bearing bank accounts

• Rebates

• Contributions

CNP Expenditures

• Salary/wages

• Fringe benefits

• Purchased services

• Operating, maintenance, & energy

• Food

• Non-food supplies

• Capital equipment & supplies

Food Production Standards

• Meal Equivalents (MEQ) is the rate used to compare the amount of labor needed to prepare breakfast, snack, or a la carte with the labor needed to prepare one lunch.

• 1 lunch = 1 meal equivalent

• 2 breakfasts = 1 meal equivalent

• 4 snacks = 1 meal equivalent

• $3.00 a la carte = 1 meal equivalent

Meals Per labor Hour

Current meal equivalents____________________

Total labor hours worked= Meals per labor hour

Meal Equivalents

• 80 breakfasts = 40 MEQ

• 60 snacks = 15 MEQ

• $270 a la carte = 90 MEQ

• 200 lunches = 200 MEQ

• Total = 345 MEQ

Labors

• Manager 6 hours day

• 1 staff 5 hours day

• 1staff 4 hours day

• Total = 15 hours day

Meals Per Labor Hour

• 345 MEQ ÷ 15 hours = 23

What Happens When…

• Participation increases?– 80 breakfasts = 40 MEQ– 60 snacks = 15 MEQ– $270 a la carte = 90 MEQ– 250 lunches = 250 MEQ– Total = 395 MEQ

• 395 MEQ ÷ 15 hours = 26.33

What Happens When…

• A la carte sales increase?– 80 breakfasts = 40 MEQ– 60 snacks = 15 MEQ– $300 a la carte = 100 MEQ– 200 lunches = 200 MEQ– Total = 355 MEQ

• 355 MEQ ÷ 15 hours = 23.66

What Happens When…

• Total hours worked decreases?– Manager 6 hours day– 1 staff 3 hours day– 1staff 4 hours day– Total = 13 hours day

• 345 MEQ ÷ 13 hours = 26.5

Alabama Productivity Standards

• 16-19 meals per labor hour

Calculating Food Cost Percentage

• The percentage of total expenditures spent on food.

• Alabama standard 30-34%

Calculating Labor Cost Percentage

• The percentage of total expenditures spent on labor.

• Alabama standard is 42-46%

CNP “Money” Pie

Labor 42-46%

Food 30-34%Other 20-28%

Jackson Primary School

• Where can revenue be increased?– Paid students 76 breakfasts 38 lunches– Free students 87 breakfasts 26 lunches– Reduced-Price 6 breakfasts 3 lunches