SCHOOL FOOD SERVICE FINANCE

ISSUES

Presenters

Susan Barkley

Division of District Support

susan.barkley@education.ky.gov

502.564.3930 extension 4437

Sue Bartenfield

Division of School and Community Nutrition

sue.bartenfield@education.ky.gov

502.564.5625 extension 4922

Nonprogram Food Costs Required by Healthy Hunger-Free Kids Act Effective date: July 1, 2011 (SFY 12) Objective: Ensure nonprogram activities

are not subsidized by program revenues

Program Activities

Nat’l School Lunch

Breakfast

After School Snack

Fresh Fruit &

Vegetable

All other activities are nonprogram

Calculate Nonprogram Food Cost

Obtain an average

reimbursable meal cost

Multiply the average meal

cost by the number of

meals served in a month

Equals one month’s food

costs for reimbursable

meals

Subtract calculated

cost for reimbursable meals from total food

cost

Equals nonprogram food cost

Include: NSLP, breakfast, FFVP, and after school snack

Non-program food revenue tool

Gather the following information:• Food costs of reimbursable meals• Food costs of non-program foods• Revenue from non-program foods• Total revenue

SNP Report

Objective: To ensure that cash balance does not exceed three months’ operating costs

A positive number in “Excess Balance” means there is more than 3 months’ operating costs available

“Opening Balance” will automatically populate from prior period’s report

SNP Financial Report

Jul - Dec 2013

REVENUES AND EXPENDITURES         

1. Opening Balance (populates from prior period closing balance) $ 203,678.39

2. Revenues for Reporting Period

a. Program Revenues (object codes 161*) $ 228,644.25

b. State Matching Requirement (object codes 3***, except 3900) $ -

c. Federal Reimbursement (object codes 4***) $ 578,936.54

d. Nonprogram Revenue (object codes 11**, 12**, 13**, 14**, 15**, 162*, 163*, 1650, 1690, 17**, 18**, 19**, 5***) $ 13,854.07

e. Total Revenues - Items 2: (a + b + c + d) $ 821,434.86

f. Percent Program Revenues = Items 2: (a + b + c) / e 98.31%

g. Percent Nonprogram Revenues = (100 - Item 2f) 1.69%

3. Expenditures for Reporting Period

a. Program Food Expenditures (object code 0630) $ 440,093.27

b. Nonprogram Food Expenditures (object codes 1630N, 1630C) $ 276,511.31

c. Salaries (object codes 01**) $ 60,201.25

d. Employee Benefits (object codes 02**, except 0280) $ 19,929.91

e. Purchased Services (object codes 03**, 04**, 05**) $ -

f. Equipment Purchase (object codes 073*) $ 23,198.07

g. Supplies/Miscellaneous (Object codes 061*, 062*, 064*, 0650, 066*, 067*, 0680, 069*, 071*, 0720, 08**, 0910, 0914, 0915, 0920, 093*, 0940, 0950, 0960, 0990) $ -

h. Indirect Costs (if applicable) (object code 0913) $ -

i. Total Expenditures = Items 3: (a + b + c + d + e + f + g + h) $ 819,933.81

4. Closing Balance = (Item 2e + Item 1 - Item 3i) $ 205,179.44

5. Gain or Loss = (Item 2e - Item 3i) $ 1,501.05

6. Three Month Average Operating Cost = (Item 3i / 2) $ 409,966.91 7. Cash Balance (balance sheet account 6101) $ 173,479.37

8. Excess Balance = (Item 7 - Item 6) $ -

9. Indirect Cost Rate 10.7100%

10. Indirect Cost for Food Service Operation = Items 3:(c + d) * Item 8 $ 8,582.05

2/15/2014 SAMPLE COUNTY BOARD OF EDUCATION PG 1

BALANCE SHEET FOR 2014 glbalsht

FUND: 51 FOOD SERVICE FUND /

NET CHANGE ACCOUNT

FUND: 51 FOOD SERVICE FUND         FOR PERIOD   BALANCE

ASSETS 51 6101 CASH IN BANK 43,780.81 173,479.37

51 6171 INVENTORIES FOR CONSUMPTION 0.00 31,791.00

TOTAL ASSETS

43,780.81 205,270.37

   

LIABILITIES 51 7421 ACCOUNTS PAYABLE 0.00 -90.89

51 7603 PURCHASE OBLIGATIONS -90,064.59 641,231.70

   

TOTAL LIABILITIES -90,064.59 641,140.81

FUND BALANCE 51 6302 REVENUES CONTROL -384,737.40 -1,025,113.25

51 7602 EXPENDITURES CONTROL 137,278.20 819,933.77

51 8739 RESTRICTED - NET ASSETS (FD SVC) 203,678.39 0.00

51 8753 ASSIGNED - PURCH OBL - CURRENT 90,064.59 -641,231.70

   

TOTAL FUND BALANCE 46,283.78 -846,411.18

TOTAL LIABILITIES + FUND BALANCE -43,780.81 -205,270.37

   

* * END OF REPORT - Generated by Beyonce * *

Project Codes

Commodities – 201X School breakfast – 203X National school lunch – 205X Special milk – 206X Child and adult care food – 208X Summer food – 209X Nutrition education & training – 214X Fresh fruits & vegetables – 215X NSLP equipment, child nutrition – 225X

Object Codes

0630 – Food Suggestion:

0630N – Nonprogram food costs0630C – CACFP food costsOr use some other character at the end of

0630 to segregate these costs 0639 – Other

Use this for commodity fees to keep them separate from commodity food value

Revenue Object Codes

May use 1620 as a summary code instead of breaking out into 1621-1629

May use 1630 as a summary code instead of breaking out into 1631-1637

Indirect Cost Issues

Use nonrestricted rate or a lesser rate Apply the rate to salaries and benefits

(excluding on-behalf payments) Cannot treat something as a direct cost

if it is also included in the indirect cost pool

Indirect Cost Pool

Indirect Cost Issues

If a cost is considered a direct cost to one federal program, it must be treated as a direct cost to ALL federal programsExample: garbage removalExample: maintenance personnel

Recommendation: make indirect cost entry monthly

Other Issues

Administrative ReviewFinance component will involve finance

officers Interest earned on food service funds –

make entry monthly