Financial Management for the CACFP

mailboxcuckooManagement

Nov 10, 2013 (4 years and 3 days ago)

113 views

Financial Management for the CACFP

Sponsoring Organizations

VIABLE, CAPABLE & ACCOUNTABLE

Are you VCA?

Financial Viability

7 CFR
§

226.6(b)(2)(
vii)(A)


Have adequate
financial
resources to


Operate
the CACFP on a daily
basis


Pay
employees and
suppliers, even
during
temporary
interruptions in
CACFP payments


Pay fiscal claims


Document
financial
viability through
audits,
financial statements, etc
.

Administrative Capability

7 CFR
§

226.6(b)(2)(vii
)(B)

“Appropriate
and effective
management
practices
must be in effect to
ensure that
the
Program operates in
accordance with [the
regulations].”

Administrative Capability

7 CFR
§

226.6(b)(2)(vii
)(B)


Adequate staff for daily operations


Adequate staff for monitoring


Policies and procedures in place to assign
responsibilities and ensure civil rights
compliance


Accountability

7 CFR
§

226.6(b)(2)(vii
)(C)

Each “institution
must have internal controls
and other management systems in effect to
ensure fiscal accountability and to ensure
that the Program operates in accordance
with the requirements of this part. […]”


Accountability

7 CFR
§

226.6(b)(2)(vii
)(C)


Integrity and accountability


Timely and accurate claims


Funds and resources used for CACFP
purposes


Procedures in place to safeguard funds
and prevent fraud or abuse


How are you using your
CACFP reimbursements?

Allowable Costs


For all costs:


Is it CACFP
-
related?


Did
I seek prior approval
(if needed)
?


Did I follow proper procurement procedures?


Did I allocate the cost
(if needed)
?


Do I have proper documentation?

Proper Documentation


Procurement documents
(if applicable)


Itemized receipts or invoices


Payroll records


Time and attendance
(if applicable)



Allocations
(if applicable)




Good Financial Management


Track CACFP food
reimbursements


Track disbursements


Track CACFP admin
reimbursements


Track CACFP
-
related
expenses

Financial Reports


Administrative Payment Close
-
Out
Analysis


Provider Payment Reconciliation Report


Annual Budget

Admin Payment Close
-
Out


Determine total documented

actual
administrative costs for fiscal year


Submit close
-
out analysis and calculation
of carry
-
over by end of December


Remit unexpended administrative
reimbursement in excess of 10% carryover

Provider Payment Reconciliation


Compare payments disbursed to
payments cleared


Report on prior fiscal year due by first
Friday in April


Cancel un
-
cashed checks and remit
unpaid reimbursements to State Agency
(if
necessary)


Annual Budget Process


Develop budget


Submit budget by
August 30


Receive approval letter by October 1


Maintain financial documentation


Track reimbursements and expenses


Update budget as needed


Submit amendments / approval
requests

FY 2014 Budget


Budget Spreadsheet


Budget for overall
CACFP

operations


Budget Narrative
for administrative
budget


Supporting Documentation
for CACFP
-
funded items in

administrative
budget


Allocation Plan

for multi
-
state sponsors


Advance Funds Request Form

Developing the Budget


Determine estimated reimbursements


Use projections for anticipated number of
homes for
coming fiscal
year

Developing the Budget


Determine
estimated costs


Base on average costs from current year


Adjust for projected changes in
homes


Use Labor Budget Worksheet &
Homes
Sponsorship
Budget

Developing the Budget


Allowable vs. unallowable costs


Prior and specific prior written approval

The Budget Spreadsheet

Budget Narrative


Describe how each line item was
determined


Include allocation formula if expense covers:


CACFP and non
-
CACFP activities


Home and facility sponsorship


Identify
CACFP
-
funded items with red
asterisk (
*
) and provide justification


You MUST receive
s
pecific
p
rior
w
ritten
a
pproval
(SPWA)
separate from budget approval

before
charging these costs to CACFP

Supporting Documents


For all
CACFP
-
funded
line items:


Submit documentation to support amount,
such as:


Payroll records with compensation plan or time
-
and
-
attendance


Lease agreements


Contracts


Bills


Not required for non
-
CACFP funded items


Allocation Plan


Multi
-
State Sponsors:


Describe how all costs will be allocated


Reimbursement percentage or actual
time/
usage


Must submit for USDA approval

Advance Funds Request


For operational and/or administrative
reimbursements


Average
reimbursement for October
-
June


Request up to 2 months of advance payment


October


November


Repay advance over 4
-
10 months


Submit form with FY 2013 budget
documents
even
if not requesting an
advance

Questions