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Answer Sheet
Case Study # 2 Budgeting
Chapter Six-Monitoring Operational Revenue and Expenditures;studying trends that will impact on both
National Food Service Management Institute Financial Management Participant Workbook
Calculate blank cells using Oaks SD data. Answer Sheet School Food Service – Revenue Budget Worksheet
Breakfast Number Price Reimbursement Total Paying Students
57,550
.80
46,040.00
Reduced Price
24,750
.30
7,425.00
Adult Breakfast
930
.95
883.50
Paying Student (Fed. R.)
57,550
.23 13,236.50
Reduced Student (Fed. R.)
24,750
.93 23,017.50
Free Student (Fed. R.)
233,400
1.23 287,082.00
Total Rev./Breakfast
377,684.50*
Lunch Number Price Reimbursement Total Paying Students
391,500
1.75
685,125.00
Reduced Price
70,300
.40
28,120.00
Adult Lunch
36,300
2.25
81,675.00
Paying Student (Fed. R.)
391,500
.21 82,215.00
Reduced Student (Fed. R)
70,300
1.84 129,352.00
Free Student (Fed. R.)
430,900
2.24 965,216.00
Afterschool Snacks (Free sites)
63,885
.61
38,969.85
Total Revenue/Lunch & Snacks
$2,010,672.85*
Other Revenue Revenue Item Revenue from
Previous Year 100% plus % increase Revenue
A la carte
$50,550.00
0%
50,550.00 Special Functions
20,802.00
103%
21,426.06 Interest
1850.00
101%
1,868.50 State Matching
17,850.00 102%
18,207.00
Total Other
92,051.56*
Total Revenue
(Total of all *cells) → $2,480,408.91 Commodity Value (.1575 per student
lunch) (.1725)(892,700) 153,990.75
Total All Revenue
$2,634,399.66
Note - Check with your State agency for the best method to project revenue from State funds. If State funds are issued on reimbursable meals served, add sections under meal & breakfast categories for State revenue.
Chapter Six-Monitoring Operational Revenue and Expenditures;studying trends that will impact on both
National Food Service Management Institute Financial Management Participant Workbook
Budget Building Case Study #2
Answer Sheet
School Food Service – Expenditure Budget Worksheet Expenditure Category
Current Year (rounded)
% Increase
Projected Cost /Budget
Salaries
$699,400.00
104%
727,376.00
Benefits
297,530.00
0%
297,530.00
Purchased Food + **Extra Snacks
909,400.00
103% 12,600 x .61
936,682.00 7,686.00
Commodity Value
140,581.00
(Based on lunches served/ should match
revenue)
153,990.75
Supplies and Miscellaneous 363,900.00 102%
371,178.00
Equipment, Capital 48,520.00
(Budget based on need)
32,000
Indirect Cost 60,650.00
0%
60,650.00
Overhead 90,980.00
101%
91,889.80 Total Expenditures
$2,678,982.55
Hint – To calculate projected cost in budget, multiply expenditure x percent increase + 100, then enter using the percent key. Example – Enter 909,400 x 103, then hit % key. The new budget figure for purchased food is $936,682 **Hint – To calculate cost of food purchased for extra snacks counts over last year due to the addition of a new school, multiply the 70 snacks x 180 days x reimbursement.
Chapter Six-Monitoring Operational Revenue and Expenditures;studying trends that will impact on both
National Food Service Management Institute Financial Management Participant Workbook
Budget Building Case #2 Analyzing the Budget
Answer Sheet A budget is a tool for financial management. It helps the school food service administrator decide when a price increase is needed and when expenditures must be decreased. Analyze the budget you have just completed for Oaks School District by answering the following questions. 1. What is the bottom line net (excess or deficit)? Revenue – $2,634,399.66 Expenditures – 2,678,982.55 -($44,582.89) 2. Calculate the budgeted amount of each expenditure to total budgeted revenue in the following areas. Formula - Budgeted Amount ÷ Revenue
Revenue - $2,634,400 Category
Budgeted Amount
% of Revenue
Salaries and Wages
$727,376.00
.2761
Employee Benefits
297,530 .1129
Purchased Food
944,368.00 .3585
Commodity Value
153,990.75 .0584
Supplies
371,178.00
.1409
Capital Equipment
32,000 .0121
Indirect Cost
60,650
.0230
Overhead
91,889.80
.0349
Total Expenditures
2,678,982.55
1.0169
3. Based on the budget analysis, will there be an improvement in the
financial status of the school food service program in Oaks School District in the next school year? Yes, less deficit (current year deficit = $ -142,563) (budget deficit = ($ -44,583)
If so, what has contributed to the improvement? Increased revenue due to higher student lunch prices and reimbursement rates. Note - Expenditure percentages are about the same.
Chapter Six-Monitoring Operational Revenue and Expenditures;studying trends that will impact on both
National Food Service Management Institute Financial Management Participant Workbook
Budget Building Case Study #2 Analyzing the Budget
Answer Sheet (continued)
4. How many student and adult meal equivalents are projected for Oaks School District in the new budget? Lunch - 892,700 (students) + 36,300 (adults) = 929,000 Breakfast – 315,700 x .66 = 208,362 (students) + 930 x .66 = 614 (adults) = 208,976 Snack - 63,885 ÷ 3 = 21,295 Other - $50,550 + 21,426 = 71,976 ÷ 2.4125) = 29,835 1,189,106 5. What is the projection for meal cost per meal equivalent? revenue per meal equivalent? Revenue per meal equivalent – Revenue $2,634,400 = $2.2154 ($2.22) Meal Equivalents 1,189,106 Meal cost per meal equivalent – Expenditure $2,678,983 = $2.2529 ($2.25) Meal Equivalents 1,189,106 6. Calculate the cost of adult meals based on budget projections. Will revenue from adult meals cover the costs? No, though the loss is considerably less than the current year, there is a budgeted deficit of $498.00 Adult meal equivalents - 36,300 lunch 614 breakfast meal equivalents 36,914 adult meal equivalents Adult Breakfast costs 36,914 x 2.25 = $83,056.50 Revenue $81,675 + 883.50 = $82,558.50 $ (498.00) 7. Are there any changes you would recommend? Why? Allow participants to discuss their ideas on recommendations. Point out the unusually high cost percentage of supplies.
Chapter Six-Monitoring Operational Revenue and Expenditures;studying trends that will impact on both
National Food Service Management Institute Financial Management Participant Workbook
