M arch 2024 Edition
For Non-School Food Authorities
CACFP FINANCIAL MANAGEMENT
WORKBOOK
Developed by the Oregon
Department of Education – Child
Nutrition Programs (ODE CNP)
March 2024 Edition
Disclaimer: This workbook is meant as a guide
for non-School Food Authority sponsors of
the Child and Adult Care Food Program
(CACFP) in Oregon only.
ODE CNP cannot provide financial counsel
and sponsors should reach out to a certified
financial accounting professional for financial
advice.
This workbook is intended to provide
technical assistance on the financial
management of CACFP only.
2
Non-Discrimination Statement
In accordance with federal civil rights law and U.S. Department of Agriculture
(USDA) civil rights regulations and policies, this institution is prohibited from
discriminating on the basis of race, color, national origin, sex (including gender
identity and sexual orientation), disability, age, or reprisal or retaliation for prior
civil rights activity.
Program information may be made available in languages other than English.
Persons with disabilities who require alternative means of communication to
obtain program information (e.g., Braille, large print, audiotape, American Sign
Language), should contact the responsible state or local agency that administers
the program or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or
contact USDA through the Federal Relay Service at (800) 877-8339.
To file a program discrimination complaint, a Complainant should complete a
Form AD-3027, USDA Program Discrimination Complaint Form which can be
obtained online at: https://www.usda.gov/sites/default/files/documents/ad
-
3027.pdf, from any USDA office, by calling (866) 632‐9992, or by writing a letter
addressed to USDA. The letter must contain the complainant's name, address,
telephone number, and a written description of the alleged discriminatory action
in sufficient detail to inform the Assistant Secretary for Civil Rights (ASCR) about
the nature and date of an alleged civil rights violation. The completed AD-3027
form or letter must be submitted to USDA by:
1. mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil
Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; or
2. fax: (833) 256-1665 or (202) 690-7442; or
3. email: Program.Intake@usda.gov
This institution is an equal opportunity provider.
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Table of Contents
Definitions 5
Financial Management 101 9
Performance Standards in CACFP 11
What is Non-Profit Food Service 13
Non-Profit Food Service and Your Organization 15
Maintaining Non-Profit Food Service 27
Management Plan 28
Financial Management Procedure 34
4
Definitions
Terms used in this workbook with specific financial meaning or definitions specific to the Child and
Adult Care Food Program are listed here.
Te r ms
Definition
Account codes Account codes are used for specific categories of income and
expenses.
Administrative Costs incurred by organizations related to planning, organizing, and
costs/expenses managing the CACFP
Allowable
Costs the occur during the routine operation of CACFP for which
costs/expenses Program funds may be used. These are costs that serve the purpose
of operating or improving CACFP and are included in the approved
CACFP budget
Budget An annually required document detailing the expected income and
expenses for the CACFP in the upcoming fiscal year.
Capital equipment Equipment with costs of at least $5,000. Purchasing large
equipment with CACFP funds will require Specific Prior Written
Approval.
Chart of Accounts
A type of financial organizational tool which includes a listing of all
the financial accounts in a company’s general ledger.
Child and Adult Care
A Federal Program that provides reimbursements for nutritious
Food Program (CACFP) meals and snacks served to eligible participants who are enrolled in
eligible programs.
Cost allocation/
The process of identifying and distributing costs proportionately
Allocated costs among two or more programs operated by the organization that
benefited from the goods and services purchased. The cost
allocation method must be approved by ODE CNP.
Federal regulations
The written requirements based on laws passed by Congress. The
Code of Federal Regulations dictates the implementation and
operations of legislative bills in the United States. The regulations
related to CACFP is 7 CFR 226.
5
6
Te r ms
Definition
Financial Management
The effective control and accountability over all funds, property,
and other assets to assure that they are safe-guarded and used
efficiently to fulfill authorized purposes.
Food Service An organization other than a public or private non-profit school
Management Company with which a sponsor contracts for preparing and delivering meals
(FSMC) for use in the CACFP or other Child Nutrition Programs.
Fiscal Year A one-year period determined by the organization or Federal
program for use in financial reporting and budgeting. In CACFP, the
fiscal year operates from October to September of the following
year.
Indirect costs Shared costs that are not directly related to a program function but
are necessary for the general operations of an organization.
Management Plan
A Federal requirement and part of the application for CACFP. It
includes a broad overview of the sponsor’s CACFP operations.
Negative account When expenses exceed income at the end of a defined period of
balance time and additional funding sources are needed to cover the excess
costs.
Non-Profit Food Service
A guiding principle for CACFP financial management. It means that
(NPFS) the food service operations conducted by the organization is
principally for the benefit of the participants and all CACFP
reimbursement funds are used solely for the operations and
improvements of the program. No profit is made from operating the
Program.
Non-Profit Food Service A method of documenting fiscal accountability of CACFP funds
(NPFS) Account/Fund required by USDA. It requires CACFP income and expenses to be
Account tracked separately from organizational income and expenses. In a
NPFS fund account, all income and expenses are tracked in one
account for the CACFP.
Operational costs/ Costs incurred by organizations in serving meals to participants in
expenses the CACFP.
Oregon Department of The State agency in Oregon that administers the United States
Education – Child Department of Agriculture – Food and Nutrition Services’ Child
Nutrition Programs Nutrition Programs, including the CACFP.
(ODE CNP)
Te r ms
Definition
Positive account balance
Prior approval
Profit and Loss
Statement
Program integrity
Reimbursable meal or
snack
Reimbursement
Specific Prior Written
Approval (SPWA)
Sponsor/CACFP sponsor
State agencies
Written financial
management procedures
Unallowable costs/
expenses
When money is left over in an account at the end of a defined period
of time after all expenses are deducted from income.
Securing the State agency’s permission to incur costs prior to
incurring them. All costs require prior approval through the annual
budget.
Financial statement that summarizes the revenues, cost, and
expenses incurred during a specified period.
A concept that sponsors will operate the program to meet all
requirements and with the intention to use reimbursements
received to serve participants nutritious meals. Program integrity
is only possible if sponsors are qualified and capable of operating
CACFP by meeting all Performance Standards (see VCA).
A meal and snack that meets the nutrition requirements and other
eligibility requirements of the CACFP as set by USDA FNS and paid
by ODE CNP.
The only Federal funding provided to sponsors of the CACFP.
Reimbursements are provided only for reimbursable meals or
snacks served to eligible participants at approved sites.
Securing the State agency’s written permission for a particular
Program expense before incurring costs. Contracts and some
purchases will require Specific Prior Written Approval (SPWA).
In Oregon, a sponsor is an organization that enters into a contract
with ODE CNP to operate at least one Child Nutrition Program,
including CACFP. Sponsors may have one or more sites.
The state educational agency or any other state agency designed to
operate the CACFP. In Oregon, this is ODE CNP.
A requirement of operating CACFP and part of the Performance
Standards (see VCA). Written procedures help sponsors
understand the fiscal requirements for CACFP and how those
requirements must be implemented within their organization on a
consistent basis.
A cost that cannot be paid for using CACFP funds.
7
Te r ms
Definition
Unfunded CACFP costs
Costs for CACFP that exceed the amount of reimbursements
received.
United States The Federal department that oversees and manages Child Nutrition
Department of Programs (CNP), including the CACFP. Often shortened to USDA.
Agriculture – Food and
Nutrition Services
(USDA FNS)
Unrestricted funds
Funds that are not earmarked for a specific purpose and can be
used to supplement shortages in the CACFP non-profit food service
account.
Vended meals
Meals, with or without fluid milk, prepared by a facility other than
the sponsor and sold to the sponsor.
Viability, Capability, and The three Performance Standards that all CACFP sponsors must
Accountability (VCA) meet. It stands for Financial Viability, Administrative Capability, and
Program Accountability.
8
Financial Management for CACFP 101
1
The Child and Adult Care Food Program (CACFP) is a Federally-funded Program that
provides meal reimbursements for organizations that serve nutritious meals and
snacks to eligible participants in eligible organizations.
Under CACFP, the funding available is from the reimbursements for each creditable
meal or snack served that meets all eligibility requirements. No additional
reimbursements are available to cover expenses incurred for staffing or equipment,
although there may be additional grant opportunities available from time to time.
When applying for the CACFP in Oregon, the Oregon Department of Education—Child
Nutrition Programs (ODE CNP) reviews many financial documents of the applicant
organization, including bank statements, profit and loss statements, a projected
budget for CACFP, and other documents as applicable. This is part of the application
process. Once the application is approved, the applicant becomes a CACFP sponsor.
Each year, CACFP sponsors complete an application renewal process which includes an
annual budget. In addition, starting in Fiscal Year 2025, all State agencies, including
ODE CNP, will be required to review at least one month of bank account activity and
associated financial records to verify that CACFP financial transactions meet program
requirements.
Creditable is a term used to define meals,
snacks, and food items that can be served
for reimbursement in CACFP. A
reimbursable meal or snack will be paid at
the rates set annually by the USDA FNS.
9
WHY DOES ODE CNP NEED MY BANK STATEMENTS?
ODE CNP is responsible for ensuring program integrity, meaning that sponsors in Oregon are qualified
and capable of operating the CACFP. Looking at bank statements helps to determine if Program financial
requirements are met. Additional financial supporting documentation will also be reviewed. These
documents help ODE CNP verify that the reimbursements received from CACFP were used for the
purpose intended: to serve nutritious meals for participants.
WHAT’S INVOVLED IN CREATING A BUDGET?
ODE CNP provides a budget spreadsheet template each year. CACFP sponsors must complete the
budget with the CACFP income they anticipate earning based on CACFP revenue earned the prior year
and their estimated expenses for CACFP, such as food costs, non-food costs, or labor costs. ODE CNP
reviews the budget and will approve allowable costs and deny unallowable costs. This budget will be
the financial framework for operating CACFP in the fiscal year. If circumstances change and the budget
no longer reflects actual operations, a revised budget must be submitted to ODE CNP for approval. ODE
CNP has a Budget Guidance and Procedures tool to help sponsors complete the budget.
WHAT’S INVOLVED WITH THE ONE MONTH REVIEW
OF FINANCIAL RECORDS?
Starting Fiscal Year (FY) 2025, ODE CNP will reach out to collect receipts and documentation for
income and expenses charged to CACFP funds (ex. food receipts, payroll, time sheets, mileage logs),
credit card statements (if applicable), and bank statements as part of new regulatory requirements.
The goal is to be able to verify CACFP transactions from purchase to payment.
Purchase
Payment
Payment Completed
Credit Card, checks,
Food receipts, time
sheets, utility bill,
ACH transactions
mileage log
Bank Statements
The goal of ODE CNP financial reviews is to ensure CACFP
reimbursements are used for authorized and allowable CACFP expenses.
10
Performance Standards for the CACFP
To ensure program integrity, all CACFP sponsors must meet the following
three CACFP Performance Standards set out in the CACFP regulations under
7 CFR 226.6(b)(1)(xviii). These are known by the initials VCA, which stands for
Financial Viability, Administrative Capability, and Program Accountability.
Performance Standard #1: Financial Viability
• Must spend CACFP funds appropriately and account for them
• Must demonstrate there are adequate financial resourcesto
operate CACFP on a daily basis
• Costs in the annual budget must be necessary, reasonable,
allowable, and appropriately documented
Performance Standard #2: Administrative Capability
• Must have adequate number of qualified staff to run CACFP
• Multi-site sponsors must have appropriate ratios for monitors
• Have policies and procedures in writing, and ensure
compliance with civil rights requirements.
Performance Standard #3: Program Accountability
• Must have adequate oversight of their programs
• Must have written financial management procedures
• Must maintain all required CACFP records
• Must provide training to staff and meet all meal pattern and
meal service requirements
2
V
C
A
C
11
HOW TO MEET PERFORMANCE STANDARDS
Financial Requirements
☐
Hire qualified financial staff
☐ Ensure your organization has sufficient financial resources to run the CACFP
☐ Have a written financial management procedure
☐ Submit an annual budget
☐ Save all documentation supporting income and expenses for CACFP (as applicable):
☐ Claim reimbursement documentation
☐ Bank statements
☐ Food and non-food receipts and invoices for meals
☐ Timesheets and payroll records
☐ Utility bills and cost allocation documentation
☐ Mileage logs
☐ Profit and loss statements
Cost Allocation:
Allocated costs are costs that are
shared with other programs (ex.
electricity bill) and must be
allocated using methods approved
by ODE CNP.
WRITTEN FINANCIAL MANAGEMENT PROCEDURES
Written procedures for CACFP are part of Performance Standard #2—Administrative Capability, and
written financial management procedures are specifically listed as a requirement of Performance
Standard #3—Program Accountability. Having written procedures help organizations ensure staff
understand their duties and responsibilities and operate the program in compliance with regulations. A
written financial management procedure also helps ensure that documentation is saved properly and
that CACFP funds are used appropriately on authorized and allowable costs.
Here are 5 questions that must be answered in all financial management procedures:
1.
How is fiscal integrity of all CACFP funds maintained?
2.
What is the process to ensure accountability of all expenses?
3.
How is the organization ensuring program funds are only used for authorized CACFP purposes?
4.
What are the safeguards in place to prevent improper financial activities?
5.
How do you ensure CACFP administrative costs do not exceed the regulatory limits?
Don’t want to create your own procedure from scratch? Turn to page 34 for the ODE CNP template.
12
What is Non-Profit Food Service?
3
The Performance Standards are in place to support Non-Profit Food Service
(NPFS). What is it? Non-Profit Food Service means that sponsors must account for
CACFP revenue and expenses separately from organizational expenses and ensure
CACFP funds are solely for the operation and improvement of the CACFP. This is
the core principle of CACFP financial management.
DETERMINING NPFS
In order to determine if all CACFP reimbursements are used
towards CACFP expenses, sponsors must establish a CACFP
fund account or CACFP account codes in their accounting
system. This does not require a separate bank account,
however it does require separation of accounting for these
funds.
One way to do this is to set up CACFP income and expense
account codes in the Chart of Accounts used by your
organization. Entering CACFP allowable expenses and
income to this account allows sponsors to identify all
CACFP transactions and the account balances.
A positive account balance means that money is left over
in the account and that money must be spent on other
allowable CACFP expenses. A negative account balance
means that CACFP expenses exceeded the income and
additional funding sources must be used to cover this cost.
A net zero account is rare, and means that CACFP expenses
exactly totaled CACFP income.
Allowable CACFP Expenses
Some allowable CACFP Expenses
include:
• Food and non-food supplies
• Food service labor cost
• Vended meals*
• Food Service Management
Company meals and services*
• Donated food maintenance cost
• Administrative labor cost
• Capital equipment purchases*
• Contracted services*
• Mileage
*Indicates ODE CNP specific prior
written approval is required
13
BEST PRACTICES & TIPS FOR NPFS
Not all CACFP expenses have to be charged to
the CACFP account. Some sponsors find that food
and non-food supplies make up 100% or more of
reimbursements received. Charge unfunded
costs to other non-program funds as identified
on the budget and management plan.
Set up CACFP account codes in the Chart of
Accounts and document the account codes and
name of accounts in the written financial
management procedure.
Specific prior written approval (SPWA) is
Make sure all CACFP expenses are approved in required for some expenses (see page 13). The
the CACFP annual budget by ODE CNP prior to SPWA must be received for high value costs and
spending. some allocated costs. Specific expenses must be
listed in the budget with detailed information.
Identify the source and amount of unrestricted
funds your organization has available for
unfunded CACFP costs (costs exceeding
reimbursements).
When purchasing non‐CACFP foods (ex. coffee
and tea for staff, treats for a celebration) with
CACFP food and non-food items, ring it up on a
separate receipt or buy them on a separate trip
when possible.
Food costs must make up a minimum of 50% of
the CACFP reimbursements earned.
Administrative costs must not exceed 15% of
CACFP reimbursements. Costs in excess of 15%
will be considered unfunded CACFP costs.
Scan receipts on a monthly basis and save them
in an electronic file folder organized by month
and year. Thermal receipt paper often fade with
time. Save duplicate copies of the files on the
cloud or in a separate hard drive.
Have a back-up in place for all financial
management duties and make sure key staff
know where the financial management
procedure can be found.
14
Non-Profit Food Service (NPFS) and
Your Organization
4
Now that you have a basic understanding of CACFP financial management
requirements, let’s apply this to your own CACFP operations.
CACFP expenses often exceed
the reimbursement earned.
Having sufficient unrestricted
funds is essential to maintain
financial health and viability
requirements
YOUR ORGANIZATION’S FINANCIAL HEALTH
Before you start to set up a non-profit food service (NPFS) account for CACFP, answer a
few basic questions to ensure you meet the Performance Standards for CACFP.
Do you have a bank account for your organization?
Does your organization have enough qualified
employees to operate on a continuous basis?
Do you have an unrestricted funding source that
can cover shortfalls in your CACFP expenses?
List your unrestricted funding source(s):
If you can check off all of these questions affirmatively,
move on to the next section on Looking at the Big Picture.
If not, work on your organization’s financial health and
re-apply for CACFP once these requirements are met.
Having an organizational
(not personal) bank
account is a requirement
for financial viability.
15
LOOKING AT THE BIG PICTURE
In CACFP, the main financial goal is to ensure that all CACFP reimbursements are applied towards
allowable CACFP expenses. This means that the reimbursements you receive must go towards
serving nutritious meals that meet CACFP meal pattern requirements, which is the core principle
of Non‐Profit Food Service (NPFS). Every organization will spend their CACFP funds in a different
way, but some requirements will be the same for every CACFP sponsor.
Fiscal responsibility cannot
be outsourced—financial
Back‐up staff and double Budgets will require two
oversight must be tasked to
checks are a necessary part different staff at your
the organization’s
of running CACFP effectively organization to sign off
employees only
The first step in developing a strategy for CACFP NPFS accounting is to figure out who will
be responsible and what they will be responsible for. Below are a list of required
financial tasks for all CACFP sponsors. In the blank space, indicate the position(s) or title(s)
of the staff who will be responsible for each of these tasks in your organization.
Overseeing financial management
Writing/updating the non-profit
food service procedure
Creating an annual budget
Tracking CACFP income and
expenses
Completing monthly claims for
reimbursement
Maintaining receipts and invoices to
document NPFS
Maintaining food and labor costs
Purchasing and preparing food
16
FINANCIAL OVERSIGHT CYCLE
Once you know who will be involved, it’s important to understand how the duties will be
implemented on an annual basis.
Below is the Financial Oversight Cycle for each fiscal year. Every year, before the fiscal year begins,
sponsors will be required to create a budget for the upcoming year and have it approved by ODE
CNP during renewals. Throughout the year, sponsors purchase food and incur expenses such as
non-food costs, labor costs, or mileage that applies to the CACFP non-profit food service (NPFS)
account. Once incurred, sponsors must document and track all expenses charged on a monthly
basis. Sponsors will also submit monthly claims based on meals served.
The CACFP revenue, expenses, and account balance must be tracked each month in the accounting
system and must be supported by reports such as a profit and loss statement or revenue expense
and summary. This is how sponsors document NPFS. Sponsors with a CACFP account balance that
is equal to or greater than three months expenses are considered to have an excessive balanceand
must notify ODE CNP. A revised budget and spending plan may be necessary.
17
FINANCIAL OVERSIGHT
Financial oversight is an ongoing process throughout the entire program year. The main purpose of
financial oversight is to ensure that CACFP funds received from claims are used for allowable CACFP
expenses only. We know the big picture, now we need to fill in the details of the tasks assigned.
A
Tracking Your Non-Profit Food Service (NPFS) Account:
All organizations need to have a way to track the income and expenses for CACFP.
Many sponsors have an accounting software, such as QuickBooks, to track CACFP
income and expenses. Sponsors who are not able to track CACFP income and
expenses separately from organizational income and expenses may use ODE CNP’s
Expense Report (Excel) to document NPFS.
Sponsors should set up a CACFP-specific fund account or set up
a CACFP income and expense account. This will be the CACFP
NPFS account. If you have an account number, enter it here.
NPFS Account #
B
What expenses will be charged to the NPFS Account?
Expenses vary from sponsor to sponsor, but food expenses will always be the
major expense for all sponsors. Check off all CACFP expenses that will be
charged to your CACFP NPFS account per your approved CACFP budget.
Operating Expenses
Food Costs
Donated Food Expenses
Food Service Supplies
Operating Labor Costs
Contracted Services
Facility Costs
Utility Costs
Other(List here)
Administrative Expenses
Admin Labor Costs
Contracted Services
Facility Costs
Utility Costs
Other (List here)
Not all expenses have to be charged.
Only check off the charged expenses.
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C
What documentation are you keeping for charged expenses?
Required documentation for each type of expense is listed, check the box if those are
the documents saved for your organization or write in additional or alternative
documentation that you will be keeping. Check N/A if not applicable.
Operating Expenses
N/A? Charged Expenses
Documents Saved
Additional/Alternative
Documentation?
Food Costs
☐ Food receipts/invoices
☐
Donated Food
Expenses
☐ Detailed receipts from food
bank identifying specific foods
purchased
☐
Food Service Supplies
☐ Receipts/invoices
☐
Operating Labor
Costs
☐ Time sheets, time
distribution reports, and payroll
records
☐
Contracted Services
☐ Contract, invoices, approved
allocation method and amount
☐
Facility Costs
☐ Rental agreement, cancelled
checks, approved allocation
method and amount
☐
Utility Costs
☐ Invoices, cancelled checks,
approved allocation method and
amount
☐
Other (List here)
Operating expenses are expenses required to run day-to-day CACFP operations. This can
include costs associated with creating a meal, including food, food service supplies,
kitchen and meal service labor, and the cost of vended meals, kitchen utilities, or kitchen
space. Since the CACFP is a food program, a minimum of 50% of the CACFP
reimbursement must be applied to food costs.
19
Administrative Expenses
Administrative expenses are expenses required to oversee the operations of CACFP. This
can include administrative labor cost for the time it takes to train staff, complete renewals,
update the budget, or site monitor. It can also include phone bills, electricity bills, cost of
office space, or mileage (not listed above, can be listed in the other category) for staff who
have to travel between sites.
N/A?
Charged Expenses Documents Saved Additional/Alternative
Documentation?
☐
Admin Labor Costs
☐ Time sheets, time
distribution reports and payroll
records
☐
Contracted Services
☐ Contract, invoices, approved
allocation method and amount
☐
Facility Costs
☐ Rental agreement, cancelled
checks, approved allocation
method and amount
☐
Utility Costs
☐ Invoices, cancelled checks,
approved allocation
method and amount
☐
Other (List here)
ALLOWABLE COSTS
To be allowable, all costs must have received prior approval from ODE CNP by being included
on the approved budget and supported by documentation showing the cost was incurred for
CACFP and paid with CACFP funds. Page 13 includes a list of common allowable costs and
indicates costs that must have specific prior written approval by ODE CNP. Any costs not
listed on that page must have specific prior written approval.
When thinking about allowable costs, think about whether the cost serves the CACFP or will
allow improvements towards the CACFP operations at your site(s). Costs must be necessary
and reasonable. In certain situations, only part of a cost may be allowable. This include
shared costs that benefit multiple programs.
20
D
Do you have any allocated costs?
Some expenses cannot be charged entirely to CACFP because they are shared between
programs. This can apply to any of the operating or administrative costs listed. Think about
the expenses that you listed on the previous pages, are any of them shared costs?
Example 1: A sponsor operates both Example 2: Garbage services are used by
CACFP and a non-CACFP meal program and both the kitchen serving CACFP and other
purchases all foods together. The food parts of the organization. The utility cost
costs must be allocated. must be allocated.
Not every sponsor will need to allocate costs. If you are only charging food costs and some
food service supply costs to the NPFS fund and you don’t operate any other food programs
or share any of the costs with other programs, you can skip this section.
DETERMINING ALLOCATION AMOUNTS
Allocation methods will vary based on the expenses that are being allocated. Some costs,
like labor costs, can be clearly coded by program and can be based on actual amounts
charged or time spent. Other allocated costs require more calculations. Below are some
common ways that costs are allocated. Check if you use the method listed. All allocated
costs require approval from ODE CNP and non-rental or utility allocated costs must
receive specific prior written approval.
Rental or Utilities Other Allocated Costs
There are many different costs that can be
Rental or facility costs must be broken out
allocated and allocation methods will vary.
by percentage, typically by time and space.
For non-rental/utility allocations, sponsors
How often is CACFP operating at the site
must develop an equitable method of
compared to other programs and how much
allocating costs to CACFP and submit it for
space does CACFP operations take? This
approval to ODE CNP. ODE CNP will work
percentage must be calculated using the
with the sponsor to develop a system that
CACFP Annual Budget in Schedules B and C.
will be equitable.
Note: Sponsors with indirect costs should reach out to their assigned Child Nutrition
Specialist to determine the appropriate allocation method.
21
E
How are you managing unallowable costs?
Unallowable costs are those that cannot be charged to the CACFP NPFS fund account.
These may be necessary and reasonable costs to operate your organization, but do not
further the goals of serving CACFP meals and snacks to your participants. Some costs
are expressly unallowable, even if the cost appears to support CACFP. Unallowable
costs must be paid using other funding sources.
Take a look at the list of common unallowable costs below and then think of how you
would manage the common situations below that.
Unallowable CACFP Expenses:
• Non-program expenses
• Costs not approved on the budget
• Costs that are not properly documented
• Administrative costs over 15% of
reimbursement
• Licensing fees and other general business
expenses
• Fundraising costs
• Improvement of facilities
• Bad debts, fines, and late charges
• Tips and gratuities
Situation 1
Your staff purchases all items for the week
at the local grocery store, including coffee
and tea for the teachers, supplies for
crafts, as well as CACFP food items. How
would you disallow unallowable items?
Situation 2
Your cook also works in the classrooms as
a substitute teacher, but she does not use
different codes to track her time. Her time
this month for CACFP is unallowable. How
do you ensure future time on CACFP is
documented correctly?
Situation 3
Your dairy vendor started allowing tips and
your office manager gave $5. What
account do you charge the tip to?
22
Answers for Situations 1-3:
• Situation 1: If receipts include both allowable and unallowable expenses, ODE CNP recommends
crossing out all unallowable expenses, and totaling all allowable expenses to facilitate entering
only the allowable total amount for your CACFP NPFS fund account.
• Situation 2: To charge labor costs when staff works on multiple programs, timesheets must be
maintained for all labor charged, and a time distribution report of the time spent on CACFP and
non-CACFP activities must be available showing what portion of labor costs can be charged to the
NPFS account. Payroll records must also be kept. Labor costs must be charged based on actual
time spent on CACFP.
• Situation 3: Tips and gratuities cannot be charged to the NPFS account. This will need tobe
charged to another unrestricted fund.
Funding Source Estimated Amount ($) Notes
CACFP Reimbursements
F
How do you track CACFP income?
CACFP reimbursements will often be the major source of your CACFP income.
Reimbursements are provided for meals and snacks that meet nutrition
standards for CACFP as well as eligibility requirements for participants and
sponsors. Reimbursement rates vary from sponsor type and may be based on
participant income eligibility percentages. Rates will vary by sponsor. You can
use the ODE CNP Estimate Your CACFP Reimbursement Calculator for an idea
of how your monthly reimbursement might look.
Some sponsors may have additional funding sources. All sources of Child
Nutrition Program funds may be deposited in the NPFS account, but must be
tracked separately by the source of funding. If funds are restricted to be used
in the CACFP, then it should be tracked as CACFP income.
Below, list out your sources of CACFP income for this year.
23
DETERMINING NPFS—ACCOUNT BALANCE
Sponsors must determine if they are meeting non-profit food service (NPFS) requirements on a
monthly basis. To meet NPFS requirements, CACFP funds must be tracked separately from other
funds and must be spent only on allowable costs. Any unspent CACFP funds (positive account
balance) must be reserved for future CACFP costs. If you have a negative account balance,
additional funding must be moved over to the CACFP fund account to cover the unfunded costs.
Below is a list of CACFP income and expenses that you have reported in this workbook. Add in the
estimated income and expenses for a given month and see if you are meeting NPFS.
CACFP Income Monthly Amount ($)
Month/Year
CACFP Reimbursements
CACFP Operating Monthly Expenses
Expenses ($)
Food Costs
Total
Donated Food
CACFP Admin Monthly Expenses
Food Service Supplies
Expenses ($)
Operating Labor
Admin Labor Costs
Contracted Services
Contracted Services
Facility Costs
Facility Costs
Utility Costs
Utility Costs
Other(List here)
Other(List here)
Total
Total
Monthly Balance
If negative, additional funding source?
If positive, plan to spend down?
24
CREATING A BUDGET
The annual CACFP budget is a way for ODE CNP to approve allowable costs and for determining
VCA. All CACFP expenses that will be charged towards the CACFP NPFS fund must be document-
ed in the annual budget and submitted to ODE CNP for approval each year.
Expenses not approved in the CACFP budget are not allowable.
The ODE CNP Budget template is updated each year and sponsors will be instructed on where to
download the file in their Renewal Memo. Sponsors who need step-by-step guidance on
completing the budget can review the ODE CNP Budget Guidance and Procedures tool.
Sponsors should develop their budget each year based on CACFP income and expenses from the
prior year. Basing the budget on past experience and making adjustments for anticipated changes
will help sponsors to develop a budget that supports their financial plan for CACFP.
CHECKLIST FOR YOUR BUDGET
Complete the following tasks as preparation for creating your budget:
One responsible principal/person listed in CNPweb to complete the budget
A second responsible principal/person listed in CNPweb review to review the
budget (this cannot be the same person)
Review the following resources:
• Budget Guidance and Procedures
• FNS Instruction 765-2 Rev. 4
• USDA Guidance for Management Plans and Budgets
Figure out your projected CACFP income for the upcoming fiscal year
Figure out what unrestricted funds will be available
A list of all operational expenses and general costs
A list of all administrative expenses and general costs
25
THE MANAGEMENT PLAN AND FINANCIAL
MANAGEMENT PROCEDURE
A management plan is part of the application process for CACFP. It includes a broad list of tasks
related to the operations of CACFP and provides ODE CNP with an idea of how your organization
will run CACFP. The management plan in CNPweb has questions on financial management and
those select questions are included on pages 28—33 of this workbook.
While the management plan provides a general overview of CACFP operations, the procedure for
non-profit food service , also known as the written financial management procedure, provides a
detailed look into how your organization will implement financial requirements as part of CACFP.
The ODE CNP procedure template is available on pages 34—47 of this workbook.
Together, the management plan and the financial management procedure work together to
provide a comprehensive picture of how your organization operates CACFP. Information in the
management plans, written procedures, and budget must match when the topics intersect. When
they do not match, ODE CNP may view this as a potential area of concern.
Both the management plan and financial management procedure are considered living documents
that are expected to be continually updated as situations change. Sponsors must update both of
them as needed. When ODE CNP is on review, the expectation is that sponsors will be operating
according to their management plan and written procedures.
NOTES ON COMPLETING THIS WORKBOOK
The next section of this workbook will include completing your own management
plan and financial management procedure.
• Sections or questions that do not apply to all sponsors will have a N/A boxthat
can be checked. N/A stands for Not Applicable. If there are no N/A boxes
available, the questions will apply to all sponsors.
• This workbook has linked sections and some answers provided earlier inthe
workbook will auto-populate in the management plan or the procedure for
maintaining non-profit food service.
• ODE CNP also has a narrative Word Document template for the procedurefor
maintaining non-profit food service for sponsors who prefer to include more
detailed information.
• If you have questions, review the resources available on page 47 or reachout
to your assigned Child Nutrition Specialist.
26
Maintaining Non-Profit Food Service
Management Plan and Financial Management Procedure
Sponsor Name
Procedure Revision Date
Overview of CACFP Requirements:
• Sponsors must maintain non-profit food service meaning that “all food service
operations conducted by the institution [is] principally for the benefit of enrolled
participants, from which [CACFP] Program reimbursement funds are used solely for
the operation or improvement of that food service.” (FNS 796-2, Rev 4)
• Non-profit food service must be documented by the sponsor showing that all CACFP
income is spent on Program expenses.
• Acceptable documentation includes itemized receipts, invoices, time and attendance
reports, payroll records and bank statements.
o Sponsors who operate multiple Child Nutrition Programs must account for
these funds in the nonprofit food service account separately by Program.
Information provided in the Management Plan and written Financial Management
Procedure must match information provided on the CACFP Annual Budget and reflect
current practices. Sponsors must update the Management Plan and the written Financial
Management Procedure when situations change.
Sponsor Notes
27
Management Plan
This abbreviated management plan only includes questions related to CACFP financial
management from the full CNPweb Management Plan under the Applications Tab. The
management plan provides an overview of your organization’s CACFP operations. Complete this
management plan to provide a “big picture” view of how you are ensuring non-profit food service
requirements are met in the CACFP.
Financial Viability and Financial Management:
In this section, indicate the resources used. Institution refers to your organization, and facility
means your site(s).
Fiscal Resources and Financial History
Check all Resources that apply
If the institution should experience a temporary
interruption of CACFP funds, how would it
continue to operate?
(See: Schedule A of the CACFP Annual Budget)
☐
Line of Credit/loans
☐ Tuition/parent fees
☐ Sponsor discretionary funds
☐ Other, provide explanation:
If the institution must repay CACFP funds due to an
over-claim, how would this be done?
(See: Summary Tab of the CACFP Annual Budget)
☐
Line of Credit/loans
☐ Tuition/parent fees
☐ Sponsor discretionary funds
☐ Other, provide explanation:
Does the institution have a waiting list for
enrollment at one or more facilities?
☐
Yes
☐ No
Institution Structure and Capability:
In this section, indicate all program staff who will be responsible for the following CACFP
management functions. See: Schedules B and C of the CACFP Annual Budget.
CACFP Function Staff Position(s)/Title(s)
CACFP management/coordination
Compiling claims for reimbursement
Completing CACFP Budget
Site Monitoring
Purchasing and preparing food
Maintaining receipts and invoices to
document non-profit food service
Maintaining food and labor costs
Written Policies and Procedures
Management Plan
28
Site Monitoring: ☐ Check if Not Applicable
Required for multi-site Sponsors. Federal regulations require that sponsors employ staff sufficient
to ensure that for every 25-150 centers sponsored, at least one full-time equivalent (FTE) staff is
devoted to monitoring activities. Fill out this table to determine the total monitoring FTE needed.
If this section is not applicable, check the Not Applicable box above. See also: Schedule C of the
CACFP Annual Budget.
Allowable Activities for Site Monitoring Sponsor Responses
Number of Sites
Number of Site Monitoring Reviews per Year
Number of CACFP Operation Months per Year (12 maximum)
Average Number of Reviews per Month
Estimated Site Monitoring Staff Hours per Month (includes
preparation, travel, follow-up, documentation, and site review
including 5-day reconciliation, and other required items).
Estimated Average hours per Month for Child Enrollment Form
Collection, Processing, and Tracking (The number will be “0” for
Afterschool At-Risk, Emergency Shelters, and Adult Care
Programs)
Estimated Hours for New Site Pre-Approval and 30-day Follow-up
Reviews (The number will be “0” unless the sponsor plans to add 1
or more sites during the fiscal year)
Total Monitoring FTE (FTE = 173.3 hours/month)
Site Monitoring is a requirement for any sponsor with more than one site, however it is
best practice for all sponsors to monitor all sites. Multi-site sponsors must monitor
each site as least three times per year with no more than six operating months
between each review. Site Monitoring Requirements can be found in the ODE CNP
CACFP Policy and Procedure Manual, Chapter 14.
Fiscal Accountability:
This section covers questions related to fiscal integrity and accountability for all funds and
property received, held, and disbursed.
Account(s):
Question Sponsor Response
Does your institution have a bank account?
☐
Yes
☐
No
Note: An organizational bank account is required.
29
CACFP Financial Records:
What documentation is maintained on file to support CACFP expenditures/expenses? (Check all
that apply)
Check
Here
Documentation Maintained
☐
Itemized receipts, invoices, and bills
☐
Timesheets
☐
Time distribution reports
☐
Rental agreements
☐
Bank records
☐
Payroll records
☐
Board minutes
☐
Cost allocation plans
☐
Procurement documentation, e.g., bids, quotes, etc.
☐
Balance sheet
☐
Other, provide an explanation here:
Validation of Receipts and Expenditures:
Question
Sponsor Response
How frequently are CACFP
receipts and expenditures
validated against the budget?
☐
Daily
☐ Weekly
☐ Monthly
☐ Other, provide an explanation here:
Financial Records will vary from sponsor to sponsor due to different expenses that may be
charged to the CACFP, however, all sponsors must have the following at a minimum:
• For CACFP expenses: Food receipts and/or invoices for meals
• For CACFP income: Claim reimbursement documentation
• To show that expenses were paid: Bank statements
• To show that non-profit food service was met: Profit and loss reports or equivalents
Additional documents may be required depending on the expenses charged to the program.
30
Consolidating Claims:
What methods are used to consolidate and submit claims for reimbursement before the claim
deadline and ensure only eligible meals are claimed? (Check all that apply)
Check
Here
Methods Used
☐
Point of service meal counts are used for preparing the claim.
☐
Claims are reviewed by a second party for accuracy prior to submission for
reimbursement.
☐
Menus and menu documentation reviewed for meal pattern compliance.
☐
One Month Enrollment Report reviewed for accuracy.
☐
Regulatory edit checks are performed prior to submission for reimbursement.
☐
Claim deadline reminder, e.g., calendar, tickler file, etc.
☐
Back up claim staff
☐
Reimbursement does not exceed two meals and one snack or one meal and two snacks
per child per day.
☐
Each participant claimed is enrolled and attending the facility.
☐
Only approved meal types are claimed.
☐
Reimbursement is not claimed for meals served in excess of the facility’s authorized
capacity or total enrollment.
☐
Meals are only claimed for approved facilities.
☐
Meals are only claims for participants that are within the regulatory age limit.
☐
Monthly For-Profit roster reflecting 25% or more enrolled participants qualify as free
and/or reduced price.
☐
Other, provide an explanation here:
Site Affiliation:
Question
Sponsor Response
Are all sites affiliated with the sponsor?
(Affiliated means they are part of the same legal entity)
☐
Yes
☐
No
If no, does the institution disburse reimbursement to
facilities within five working days or receipt of payment
from ODE CNP?
☐
Yes
☐
No
☐
Not Applicable
Sponsors with unaffiliated sites are rare in Oregon. An example of a sponsor with unaffiliated
sites can include a community organization that agrees to oversee CACFP for a day care
center that they do not operate and is a separate legal entity. This type of agreement has more
regulatory requirements, including the requirement to disburse reimbursements to the facility
operating the site within five working days that payment is received from ODE CNP.
31
CACFP Fund Management:
What methods are used to ensure that CACFP funds are used in accordance with FNS Instruction
796-2, Rev 4? (Check all that apply
)
Check
Here
Methods Used
☐
Referred to FNS Instruction 796-2, Rev 4, ODE Budget Guidance, and CACFP
Center Policy Manual as needed.
☐
Cost allocation plans are used for costs shared between programs.
☐
Only costs included in the annual budget are charged to CACFP.
☐
Receipts are reviewed to ensure no unallowable costs are accounted as CACFP
costs.
☐
Sought guidance from ODE CNP staff.
☐
Other, provide an explanation here:
Internal Controls:
What system of safeguards and controls is in place to prevent and detect improper financial
activities by employees? (Check all that apply)
Check
Here
Methods Used
☐
Different employees are responsible for food ordering and food delivery receipt.
☐
Different employees are responsible for receipt and expenditure of funds.
☐
Different employees are responsible for verifying claims and submitting claims.
☐
More than one signature is required for checks used for paying CACFP expenditures.
☐
Accountant prepares monthly reports and yearly tax returns.
☐
Annual Single Audits are performed.
☐
Board reviews CACFP expenditures and gives approval prior to purchases being made.
☐
Board makes fiscal decisions for CACFP.
☐
CACFP duties are rotated periodically within the institution.
☐
Inventory is taken periodically for items purchased with CACFP funds.
☐
Other, provide an explanation here:
32
Procurement:
Question
Sponsor Response
Does the institution have a written
procurement procedure that follows
applicable federal regulations?
☐
Yes
☐ No
Recordkeeping:
Where are the following records kept?
CACFP Financial Records
Central Office
Site
Online
Not Applicable
Reimbursement Claims
☐
☐
☐
☐
Receipts/Invoices of
Expenditures
☐ ☐ ☐ ☐
Credit Card and Bank
Statements
☐ ☐ ☐ ☐
Vended Meal Agreements
☐
☐
☐
☐
Procurement Records
☐
☐
☐
☐
Additional Sponsor Notes:
33
CACFP Financial Management Procedure
Completing this CACFP Financial Management Procedure template will meet the regulations
under 7 CFR 226.6(b)(1)(xviii)(C)(2 and 4) requiring all CACFP sponsors to have written
management controls in place to ensure fiscal integrity of all program funds, accountability of all
expenses, use of funds only for authorized purposes, and that administrative costs do not exceed
the regulatory limits. Sponsors may use their own templates, however, using this template will
help sponsors to provide all required information.
Notes on using this template: Fill in all sections, as applicable. Sections that will not apply to all
sponsors include a ‘Not Applicable’ checkbox.
I. Record Process and Timeline:
A. Overview:
1. Overview of Non-Profit Food Service (NPFS):
Sponsors must ensure non-profit food service operations, meaning that CACFP income
and expenses must be accounted for separately from organizational income and
expenses and only spent on allowable costs per the approved CACFP budget. In this
section, answer questions related to the ‘big picture’ in financial oversight.
#
Overview Questions
Sponsor Responses
a
Software program used to track
organizational income & expenses
Provide name of software here:
b
Method to document NPFS in software
program:
☐CACFP fund account
☐CACFP account codes (Chart of
Accounts)
☐ODE CNP Expense Report – if using
this method, explain in more detail in
under question c below
If CACFP fund account or CACFP
account codes are used, identify the
fund account number or
account codes for CACFP expenses:
c
If applicable, identify software limitations
that don’t allow tracking CACFP separately
d What is your organization’s fiscal year?
e
Position(s) of staff who receives expense
documentation (ex. invoices, receipts, etc.)
f Back-up position(s)
g
When documentation is initially received,
where is the document maintained?
Procedure
34
# Overview Questions Sponsor Responses
h
Are these documents given to another
position after this to maintain?
☐
Yes
☐
No
i
If yes, provide the position title who
receives the document(s) – enter N/A if not
applicable
j
Back-up position(s) – enter N/A if not
applicable
K
What is the timeframe for submitting these
documents to the position(s) responsible
for maintaining them?
l
How are documents submitted? Ex. Left on
desk or mailbox, scanned and e-mailed, filed
in common folder
2. Allowable and Unallowable Expenses:
Allowable expenses are those that can be charged to the CACFP account (can use
CACFP reimbursements for these costs) while unallowable expenses must be paid by
other funding sources. Refer to FNS Instruction 796-2, Rev 4
for information on
allowable and unallowable expenses.
#
Allowable/Unallowable
Expenses Questions
Sponsor Responses
a
How are allowable and
unallowable expenses
determined?
b
Position(s) responsible for
documenting allowable and/or
unallowable expenses on
receipts/invoices
c Back-up position(s)
35
#
Allowable/Unallowable
Expenses Questions
Sponsor Responses
d
Describe the method used to
indicate allowable or
unallowable costs, ex.
highlight allowable or
unallowable costs
e
Position(s) responsible for
determining if allowable costs
were included in the approved
annual budget and who
ensures that allowable costs
are accurately documented
f Back-up position(s)
g
Position(s) who enter in
unallowable costs on non-
profit food service accounting
software in 1a above
h Back-up position(s)
3. Allocated Costs: ☐ Not Applicable
Allocated costs are those which cannot be charged entirely to CACFP since they are
shared with other programs. Allocated costs must be given prior approval by ODE CNP
during budget approval annually. Non-rental/facility or non-utility costs requires
Specific Prior Written Approval (SPWA). In the table below, indicate which costs are
allocated and describe the process to determine the allocation percentages for each of
the allocated costs listed above.
If the allocation is not determined based on percentages, write in N/A for Not Applicable
under the “What is the ODE CNP Approved Percentage” and provide the specific
methods used to determine equitable allocation charged to CACFP.
36
Allocated Costs How allocation percentages/methods are determined
Identify the allocated cost:
What is the ODE CNP
Approved Percentage?
Identify the allocated cost:
What is the ODE CNP
Approved Percentage?
Identify the allocated cost:
What is the ODE CNP
Approved Percentage?
Identify the allocated cost:
What is the ODE CNP
Approved Percentage?
See Schedule C of the CACFP Annual Budget – expenses requiring a SPWA
must be submitted with detailed information on method of allocation.
Additional Allocated Costs Questions:
#
Allocated Costs Questions
Sponsor Responses
a
Position(s) responsible for
ensuring all allocated costs
are charged per the ODE
CNP approved allocation
percentage on the approved
CACFP annual budget
b Back-up position(s)
37
# Allocated Costs Questions Sponsor Responses
d
Position(s) responsible for
double checking the
allowable costs against the
approved budget to ensure
that allowable costs are
accurately documented
e Back-up position(s)
f
Timeline for double checks,
ex. monthly, quarterly, etc.
B. Operating Expenses:
For the following list of operating expenses, indicate the position(s) and back-up position(s)
who would enter the invoices or receipts for the expenses and the time frame to complete
the reporting.
CACFP Expenses
Position(s) responsible for
entering expenses into
tracking software and
back-up position
Time frame for entering expenses
Food Expenses
☐
When received within ___ days
☐ Weekly on ____________
☐ Monthly, by ___________
☐ Alternate time frame, enter here:
Donated Food
☐
When received within ___ days
Items
☐ Weekly on ____________
☐ Monthly, by ___________
☐ Not applicable
☐ Alternate time frame, enter here:
Non-Food Items
☐
When received within ___ days
☐ Weekly on ____________
☐ Not applicable
☐ Monthly, by ___________
☐ Alternate time frame, enter here:
38
CACFP Expenses Position(s) responsible for
entering expenses into
tracking software and
back-up position
Time frame for entering expenses
Operating Labor
☐
When received within ___ days
Costs
☐ Weekly on ____________
☐ Monthly, by ___________
☐ Not applicable
☐ Alternate time frame, enter here:
Contracted
☐
When received within ___ days
Services
☐ Weekly on ____________
☐ Monthly, by ___________
☐ Alternate time frame, enter here:
☐ Not applicable
Facility Costs
☐
When received within ___ days
☐ Weekly on ____________
☐ Not applicable
☐ Monthly, by ___________
☐ Alternate time frame, enter here:
Utility Costs
☐
When received within ___ days
☐ Weekly on ____________
☐ Not applicable
☐ Monthly, by ___________
☐ Alternate time frame, enter here:
Other Approved
☐
When received within ___ days
Operating Costs,
☐ Weekly on ____________
list here:
☐ Monthly, by ___________
☐ Alternate time frame, enter here:
☐ Not applicable
39
C. Administrative Expenses: ☐ Not Applicable
For the following list of administrative expenses, indicate the position(s) and back-up
p
osition(s) that would enter the invoices or receipts for the expenses and the time frame t
o
c
omplete the reporting. Sponsors not charging administrative expenses to the CACFP Non-
Profit Food Service Fund must still document administrative labor on the annual budget
.
CACFP Expenses
Position(s) responsible for
entering expenses into
tracking software and
back-up position
Time frame for entering expenses
Admin Labor Costs
☐
When received within ___ days
☐ W
eekly on _________
___
☐ Not applicable
☐ M
onthly, by __________
_
☐ Alternate time frame, enter here:
Co
ntracted
☐
When received within ___ days
Services
☐ Weekly on _________
___
☐ M
onthly, by __________
_
☐ Alternate time frame, enter here:
☐ N
ot applicab
le
F
acility Costs
☐
When received within ___ days
☐ W
eekly on _________
___
☐ Not applicable
☐ M
onthly, by __________
_
☐ Alternate time frame, enter here:
U
tility Costs
☐
When received within ___ days
☐ W
eekly on _________
___
☐ Not applicable
☐ M
onthly, by __________
_
☐ Alternate time frame, enter here:
O
ther Approved
☐
When received within ___ days
Operating Costs,
☐ Weekly on _________
___
lis
t here:
☐ Monthly, by __________
_
☐ Alternate time frame, enter here:
☐ N
ot applicab
le
40
D. Determining Non-Profit Food Service (NPFS):
1. Income Verification:
To determine if you are meeting non-profit food status, it is important to understand
what income sources are applicable and availab
le.
#
Income Verification Questions
Sponsor Responses
a
Position(s) responsible for
verifying the income and
entering it into tracking
software or report.
b Back-up position(s)
c
Describe how the income
documentation is maintained.
Ex. Electronically, by
downloading the monthly
claims summary from CNPweb
and documenting the claim
reimbursement amount in the
tracking software.
d
Do you receive reimbursement
income from other Child
Nutrition Programs?
☐
No
☐ Y
es – list all programs below
:
e
If yes, how do you ensure
income & expenses for each
CNP is documented in the
NPFS account?
f
What additional funds do you
receive for operating CACFP?
List all funding sources,
including Farm to Child
Nutrition Programs, sanitation
grants, expansion grants, etc.
g
Describe the process that is
used to document annual
CACFP income and expenses
41
2. Verifying 50% of Reimbursement is Spent on Food Expenses:
As a food program, sponsors must ensure that food costs will comprise a minimum of
50% of the CACFP reimbursements earned. In this section, provide information showing
that there is a system to ensure compliance with this requirement.
#
Verification Questions
Sponsor Responses
a
Position(s) responsible for
verifying that 50% of the
reimbursement received each
month is spent on food
b Back-up position(s)
c
Describe the steps and
documentation used to verify
50% of reimbursement is used
for food.
d
If 50% of reimbursement is not
used on food for a month,
describe what is done to ensure
this does not occur in the
future
42
3. Administrative Expenses/Costs - 15% of Reimbursement Cap ☐ Not Applicable
Administrative expenses or costs are listed out in Section C: Administrative Expenses.
Costs in excess of 15% of reimbursements must be charged to other non-CACFP funding
sources (unrestricted funds). Check Not Applicable above if you do not charge
administrative expenses to the CACFP fund.
#
Admin Cost Questions
Sponsor Responses
a
Position(s) responsible for
verifying that Administrative
Costs are limited to 15% of the
reimbursement received for
each month.
b Back-up position(s)
c
Describe the steps and
documentation used to verify
no more than 15% of
reimbursement is used for
admin costs.
d
If more than 15% of
reimbursement is used on
admin costs for month,
describe what is done to
remedy this.
4. Closing the Claim Month:
Financial management oversight requires monthly tracking of CACFP income and
expenses.
Journal Entries are records of a business transaction in your financial accounts
which detail how transactions affect accounts and balances. It must identify the
date, amount credited or debited, and a brief description of the accounts affected
and the reason for the journal entry.
43
# Closing Claim Month Questions Sponsor Responses
a
Position(s) responsible for completing
a Profit and Loss Report for the CACFP
account or completing a monthly
expense report.
b
Back-up position(s)
c
Identify the timing of completing a
Profit and Loss Report or monthly
expense report. Provide a timeframe.
Ex. End of month, first week of the
following month, etc.
d
Which position(s) reviews the Profit
and Loss report or monthly expense
report after it is completed?
e
Position(s) who determines whether
funds must be transferred or journal
entry completed.
f
Back-up position(s)
g
Position(s) that completes transfer of
funds or journal entries
h
Back-up position(s)
i
If CACFP expenses are less than
CACFP reimbursements earned, what
steps are taken?
☐ The balance will remain in the CACFP
account and applied to future CACFP
purchases
☐ The balance will be applied to a
different Child Nutrition Program
expense, a journal entry will be
completed, and documentation retained
to support the transfer of funds (only
applies to sponsors operating multiple
Child Nutrition Programs, ex. SFSP)
j
Describe supporting documentation
that will be maintained for fund
transfers or journal entries.
44
#
k
Closing Claim Month Questions
Position(s) responsible for maintaining
documenting for transferred funds or
journal entries
Sponsor Responses
l Back-up position(s)
5. Year-End Reconciliation:
#
a
Year-End Reconciliation Questions
Position(s) responsible to run a year-end
reconciliation report at the end of the
fiscal year to ensure all transactions
entered into the software program or
expense report matches the actual
amounts received and spent.
Sponsor Responses
b Back-up position(s)
c
If there is a CACFP positive fund balance,
identify which position(s) will be
responsible to develop a plan* to spend
down funds on allowable CACFP
expenses if more than 3 months of
operating expenses are in the CACFP
account?
*Note: The plan must be submitted to
ODE CNP, and approved, prior to
spending excess funds.
d Back-up position(s)
e
If the CACFP account balance is
negative, which position(s) will transfer
funds or complete a journal entry?
f
Back-up position(s)
g
What source of unrestricted fund(s) will
be transferred to cover the negative
CACFP fund balance? List all.
h
Describe the supporting documentation
that will be maintained for fund transfers
or journal entries.
45
# Year-End Reconciliation Questions Sponsor Responses
i
Position(s) responsible for documenting
transferred funds
j Back-up position(s)
II. Where Records Are Kept
A. Describe the location (room, cabinet, file folder, file path) where the following records are
maintained. Include any additional information that would be necessary for someone t
o
loc
ate these documents
.
C
heck
if N/A
Document Location
Reimbursement claims/income
documentation
Itemized receipts, invoices, and
purchase orders
☐
Timesheets and time distribution
reports
☐
Rental agreements
Bank records
☐
Payroll records
☐
Board minutes
☐
Cost allocation plans
Procurement documentation, e.g.,
bids, quotes, contracts etc.
☐
Contracts, e.g., vended meal
agreements
☐
Profit & loss report, ODE Expense
Report
☐
Credit card statements
☐
Other – List here:
46
III.
Resources Used/Reviewed:
1. ☐ CACFP Policy and Procedure Manual, Chapter 7
2. ☐
ODE CNP’s Financial Management Guidance
3. ☐
ODE CNP Memo on Fiscal Policy and Procedure Requirement, February 8, 2021
4. ☐
ODE CNP’s Budget Guidance and Procedures
5. ☐
FNS Instruction 796-2, Rev 4.
6. ☐ Guidance for Management Plans & Budgets – USDA Resource, December 2013
7. ☐
7 CFR 226.6(b)(1)(xviii) – CACFP Performance Standards 1, 2, and 3
8. ☐
2 CFR 200 Subpart D – Post Federal Award Requirements
9. ☐
2 CFR 200 Subpart E – Cost Principles, 200.405 – Allocable Costs
10. ☐
2 CFR 400 – Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards.
11. ☐
2 CFR 415 – General Program Administrative Regulations
12. ☐ Assessing Costs in the CACFP, USDA FNS Memo CACFP 08-2015
13. ☐
Additional resources – List below:
Additional Sponsor Notes:
47
Sponsor Notes
48
