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