CACFP: Spend It? Track it!
SPEND IT? TRACK IT! C HILD AND A DULT C ARE F OOD P ROGRAM (CACFP)
P ARTICIPANT G UIDE
Class Purpose A record keeping system for your CACFP expenses. Learn a simple organized method to track expenses on a day-to-day basis. We will also demonstrate how vital information from this paperbased system will be transferred to a spreadsheet for quick access of financial data.
Texas Department of Agriculture | Revised 07-01-2016
1
This page is intentionally blank.
Why is keeping good financial records so important?
____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ Tips Capture all financial transactions and activities in a comprehensive record management system. Keep documentation that establishes exactly what was purchased and proof of payment for all financial transactions. Perform periodic checks to make sure your records are complete and have been adjusted when needed. This demonstrates full oversight and accountability for all program assets. Compare your actual expenses against your budgeted expenses regularly, and adjust when necessary. Maintain and organize documentation that allows TDA to determine if your reported expenses were necessary, reasonable and allowable.
Operational vs. Administrative Costs As part of the budgeting and cost tracking process, it is important to know the difference between operational and administrative costs. Remember, sponsors may only retain up to 15% of each of site’s meal reimbursement to cover their administrative costs.
Operational Costs
Administrative Costs
3
Terminology Purchase and Sales Order When you buy an item from a seller or vendor you may complete a purchase order that lists the items, quantity and price. The seller or vendor issues you a sales order as acceptance of a purchase order or as an initiation of the purchase if you did not use a purchase order. The sales order lists the items, quantities and price. Delivery Receipt In most cases the seller or vendor will provide a delivery receipt with the shipped, posted or delivered items. The delivery receipt often includes a description of the delivered items so that you can compare the delivery to your sales order when you receive the items. Best Practice: Make sure to inspect the delivered items quantities and condition before signing the delivery receipt. Ask the delivery person to note any discrepancies in writing on the delivery receipt. Sales Invoice (The Bill) When a seller or vendor sells you an item the seller or vendor will issue you a document called an invoice that provides all of the details of the sale. If the seller or vendor does not require payment before sending you the item, the seller or vendor will list the payment terms on the invoice. The payment terms outline the length of time before you must pay for the item. For example, the payment terms may direct you to pay by the 30th of the month following the invoice date. If the invoice is paid beforehand, the vendor may mark it as “paid.” Credits Sometimes a seller will need to adjust the original sales invoice. For example, the seller may deliver different items or different quantities than what was listed on the sales order. A seller or vendor issues a credit when they reduce the amount you owe due to missing, damaged or returned items. Best Practice: Document any changes from the sales order on the delivery receipt so that the person who makes payments is aware of any changes before paying the sales invoice.
4
Checks A check is a special bank note that represents the cash that you pay to the seller or vendor. Each check contains a space to record the name of the payee. A person in your organization authorized to sign for the bank account from which the check is issued must sign the check. A processed or “cleared” check demonstrates that you paid for goods or services. Best Practice: Record the unique check number for each check you write in your bookkeeping system. Receipts When you pay for your items or services the seller/vendor or service provider should issue a receipt. The receipt will show whether the items or services were paid by cash, check, or credit card. Brick and mortar retail and grocery stores usually provide receipts automatically when you buy something. Best Practice: You should always make sure that the receipts you receive show itemized items or services. Bank Statement A bank statement outlines all transactions for a bank account and outlines the amount of funds available for the bank account owner to use. The bank statement will list expenses such as debit card transactions, processed checks, Electronic Funds Transfers (EFT) and cash withdrawals. The bank statement may also list income such as cash or check deposits, EFT deposits or any money credited back to you from a seller or vendor. Best Practices: Keep in mind that the name on your bank account should tie back to your business name and not your personal name.
5
Tracking Expenses Examples Basic Method
Sales Order
Delivery Receipt
Label by vendor name and dates: For example, Happy Cow Milk Company Oct 2016- Feb 2017
Compare
When you receive the sales invoice compare it to the sales order and delivery receipt for that transaction to ensure that you were charged correctly.
Sales Order Delivery Receipt Sales Invoice Keep corresponding transaction documents together, with the newest items first, behind this page.
6
Ordering Goods from a Seller or Vendor Substantiating Payment Accounting source documents contain the details necessary to substantiate transactions (payments) entered into your record filing system. Payment documentation without source documentation does not adequately support the “necessary, reasonable and allocable” part of allowable. Accounting source documents when ordering goods from a vendor or seller include the following: • Sales Order • Delivery Receipt • Sales Invoice The person that pays the bills in your organization (whether it is you or someone else) should see the source documents before they issue payment. Prior to paying, the person who pays bills must verify that the expense was allowable through the details in the sales order and invoice. They must also be able to verify that the items were actually received through the details provided on the delivery receipt. Demonstrating Payment The documentation that demonstrates payment, on behalf of your organization, using Child Nutrition funds must include: • • • • •
The transaction date The amount The name of both businesses/people A unique payment number A description of the transaction
____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ 7
Purchasing Items from a Brick and Mortar Store _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ Rolling It Up into Your Master Bookkeeping System _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ My goal is… Set a goal to help you get better at tracking your expenses. Make sure that you goal is SMART.
Specific Measurable Achievable Realistic Time Sensitive
_______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ 8
The next four pages are the Transaction Journal for Hungry Kids Inc. that we will help complete for the milk purchase from Happy Cow.
Be sure to use the guidebook app to download the template for your own transaction journal as well as blank transaction vouchers!
When used in Excel, the transaction journal automatically does much of the math and will identify some budget errors.
9
This page is intentionally blank.
10
10/1/2016 10/1/2016 10/1/2016 10/3/2016
Walmart 05282015
Realco-062016 Acme 23456 PW1 Sysco 1001
Check Number Bal Fwd
$7,500.00
Revenue $7,500.00
Hungry Kids Inc. Center 2016 - 2017 Transaction Journal
2017-2 2017-3 2017-4 2017-5 10/8/2016 Walmart -utensils & plates
HC1001
Reference # CACFP 2016-999
2017 -6 10/12/2016 Happy Cow Milk purchase
OD 06122015 HC1002
763 764 765 766 Debit Crd 10009135 767 Debit Crd 10009589 768 ACH 9997823
Transaction Detail - Section 1
Date Description 10/1/2016 CACFP Center PY2016 XS Balance forward
2017-9 10/13/2016 Office Depot - office supplies 10/14/2016 Happy Cow Milk purchase
Payroll 06182015
Transaction # 2017-1
2017-10 2017-11 10/14/2016 Payroll - 10/2/2016 - 10/8/2016
Facilities Lease Payment October 2016 Acme Rental - Freezer & Refrigerator Piggly Wiggly - various Sysco Food
2017-12
$440.00 $400.00 $444.98 $1,800.00
Expense
$7,060.00 $6,660.00 $6,215.02 $4,415.02
Fund Balance $7,500.00
$4,135.52 $4,076.32
$279.50 $59.20
$4,001.32 $3,937.32
Section 2
^
$2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87
$2,716.87
$75.00 $64.00 $1,220.45
$4,783.13
^
2017-13 2017-14 2017-15 2017-16
Total PY2017 CACFP Program Transactions
11
^
Prior Yr Excess Program Fund Carryforward $7,500.00
$7,500.00
$0.00
Meal Claim Reimbursement (excluding CIL)
$0.00
Cash-in-Lieu Reimbursement
Program Revenue - Section 2
Other Income
$0.00
Total Program Revenue $7,500.00 $0.00 $0.00 $0.00 $0.00 $0.00
Section 3 $0.00 $0.00
^ $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $7,500.00
^
Section 1
^
12
Labor Executive Staff
Labor Management Labor Staff Other Staff Food
$273.99 $1,800.00 $279.50
$400.00
Supplies & Equipment
$0.00
Purchased Services
$0.00
Media Cost
Program Operating Expenses - Section 3
Facilities & Space
$400.00
$400.00
Contracting Organization Cost
$0.00
Unaffiliated Facility Cost
$0.00
Other Operating Expense
$0.00
Total Operating Expenses
$0.00
$400.00 $400.00 $273.99 $1,800.00
Section 4
^
$776.65
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $4,053.34
^
$679.50
$279.50 $59.20
$443.80
$2,197.19
$59.20
$332.85
$443.80
$0.00 $64.00
$332.85
$64.00
$0.00
Section 2
^ ^
13
^ Section 3
^
$443.80
$443.80
Labor Labor Executive Management Staff Staff
$0.00
$40.00
$40.00
$0.00
$0.00
Media Cost
$0.00
$0.00
Contracting Other Organization Administrative Expense Cost
Program Administrative Expenses - Section 4
$170.99
$75.00
$245.99
$0.00
Labor - Facilities Supplies Other & & Purchased Financial Staff Space Equipment Services Cost
$0.00
Indirect Cost
$0.00
$75.00 $0.00
$0.00 $0.00
$40.00 $0.00 $170.99 $0.00
$0.00
YES
YES YES
YES YES
YES YES YES YES
YES
Did the financial transaction amount get fully distributed among budget categories? YES / NO
$443.80
YES YES YES YES YES YES YES YES YES
Total Administrative Expenses
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $729.79
14
Showing the Payment Has Been Made
15
100
/
Milk cartons
1000 Sunshine Ln Happy TX 12345-6789
Invoice #1003
First Bank of Happy
20
Happy Cow Milk Company
Fifty Nine and
John Doe HUNGRY KIDS INC 123 Hungry Dr. Happy , TX 79999
SECURITY FEATURES 1. Microprinting around border on face 2. Laid lines on back 3. The words “ORIGINAL
59.20
National Bank of Dairyland Dairyland, TX >345678912
P ARTICIPANT G UIDE
Class Purpose A record keeping system for your CACFP expenses. Learn a simple organized method to track expenses on a day-to-day basis. We will also demonstrate how vital information from this paperbased system will be transferred to a spreadsheet for quick access of financial data.
Texas Department of Agriculture | Revised 07-01-2016
1
This page is intentionally blank.
Why is keeping good financial records so important?
____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ Tips Capture all financial transactions and activities in a comprehensive record management system. Keep documentation that establishes exactly what was purchased and proof of payment for all financial transactions. Perform periodic checks to make sure your records are complete and have been adjusted when needed. This demonstrates full oversight and accountability for all program assets. Compare your actual expenses against your budgeted expenses regularly, and adjust when necessary. Maintain and organize documentation that allows TDA to determine if your reported expenses were necessary, reasonable and allowable.
Operational vs. Administrative Costs As part of the budgeting and cost tracking process, it is important to know the difference between operational and administrative costs. Remember, sponsors may only retain up to 15% of each of site’s meal reimbursement to cover their administrative costs.
Operational Costs
Administrative Costs
3
Terminology Purchase and Sales Order When you buy an item from a seller or vendor you may complete a purchase order that lists the items, quantity and price. The seller or vendor issues you a sales order as acceptance of a purchase order or as an initiation of the purchase if you did not use a purchase order. The sales order lists the items, quantities and price. Delivery Receipt In most cases the seller or vendor will provide a delivery receipt with the shipped, posted or delivered items. The delivery receipt often includes a description of the delivered items so that you can compare the delivery to your sales order when you receive the items. Best Practice: Make sure to inspect the delivered items quantities and condition before signing the delivery receipt. Ask the delivery person to note any discrepancies in writing on the delivery receipt. Sales Invoice (The Bill) When a seller or vendor sells you an item the seller or vendor will issue you a document called an invoice that provides all of the details of the sale. If the seller or vendor does not require payment before sending you the item, the seller or vendor will list the payment terms on the invoice. The payment terms outline the length of time before you must pay for the item. For example, the payment terms may direct you to pay by the 30th of the month following the invoice date. If the invoice is paid beforehand, the vendor may mark it as “paid.” Credits Sometimes a seller will need to adjust the original sales invoice. For example, the seller may deliver different items or different quantities than what was listed on the sales order. A seller or vendor issues a credit when they reduce the amount you owe due to missing, damaged or returned items. Best Practice: Document any changes from the sales order on the delivery receipt so that the person who makes payments is aware of any changes before paying the sales invoice.
4
Checks A check is a special bank note that represents the cash that you pay to the seller or vendor. Each check contains a space to record the name of the payee. A person in your organization authorized to sign for the bank account from which the check is issued must sign the check. A processed or “cleared” check demonstrates that you paid for goods or services. Best Practice: Record the unique check number for each check you write in your bookkeeping system. Receipts When you pay for your items or services the seller/vendor or service provider should issue a receipt. The receipt will show whether the items or services were paid by cash, check, or credit card. Brick and mortar retail and grocery stores usually provide receipts automatically when you buy something. Best Practice: You should always make sure that the receipts you receive show itemized items or services. Bank Statement A bank statement outlines all transactions for a bank account and outlines the amount of funds available for the bank account owner to use. The bank statement will list expenses such as debit card transactions, processed checks, Electronic Funds Transfers (EFT) and cash withdrawals. The bank statement may also list income such as cash or check deposits, EFT deposits or any money credited back to you from a seller or vendor. Best Practices: Keep in mind that the name on your bank account should tie back to your business name and not your personal name.
5
Tracking Expenses Examples Basic Method
Sales Order
Delivery Receipt
Label by vendor name and dates: For example, Happy Cow Milk Company Oct 2016- Feb 2017
Compare
When you receive the sales invoice compare it to the sales order and delivery receipt for that transaction to ensure that you were charged correctly.
Sales Order Delivery Receipt Sales Invoice Keep corresponding transaction documents together, with the newest items first, behind this page.
6
Ordering Goods from a Seller or Vendor Substantiating Payment Accounting source documents contain the details necessary to substantiate transactions (payments) entered into your record filing system. Payment documentation without source documentation does not adequately support the “necessary, reasonable and allocable” part of allowable. Accounting source documents when ordering goods from a vendor or seller include the following: • Sales Order • Delivery Receipt • Sales Invoice The person that pays the bills in your organization (whether it is you or someone else) should see the source documents before they issue payment. Prior to paying, the person who pays bills must verify that the expense was allowable through the details in the sales order and invoice. They must also be able to verify that the items were actually received through the details provided on the delivery receipt. Demonstrating Payment The documentation that demonstrates payment, on behalf of your organization, using Child Nutrition funds must include: • • • • •
The transaction date The amount The name of both businesses/people A unique payment number A description of the transaction
____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ 7
Purchasing Items from a Brick and Mortar Store _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ Rolling It Up into Your Master Bookkeeping System _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ My goal is… Set a goal to help you get better at tracking your expenses. Make sure that you goal is SMART.
Specific Measurable Achievable Realistic Time Sensitive
_______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ 8
The next four pages are the Transaction Journal for Hungry Kids Inc. that we will help complete for the milk purchase from Happy Cow.
Be sure to use the guidebook app to download the template for your own transaction journal as well as blank transaction vouchers!
When used in Excel, the transaction journal automatically does much of the math and will identify some budget errors.
9
This page is intentionally blank.
10
10/1/2016 10/1/2016 10/1/2016 10/3/2016
Walmart 05282015
Realco-062016 Acme 23456 PW1 Sysco 1001
Check Number Bal Fwd
$7,500.00
Revenue $7,500.00
Hungry Kids Inc. Center 2016 - 2017 Transaction Journal
2017-2 2017-3 2017-4 2017-5 10/8/2016 Walmart -utensils & plates
HC1001
Reference # CACFP 2016-999
2017 -6 10/12/2016 Happy Cow Milk purchase
OD 06122015 HC1002
763 764 765 766 Debit Crd 10009135 767 Debit Crd 10009589 768 ACH 9997823
Transaction Detail - Section 1
Date Description 10/1/2016 CACFP Center PY2016 XS Balance forward
2017-9 10/13/2016 Office Depot - office supplies 10/14/2016 Happy Cow Milk purchase
Payroll 06182015
Transaction # 2017-1
2017-10 2017-11 10/14/2016 Payroll - 10/2/2016 - 10/8/2016
Facilities Lease Payment October 2016 Acme Rental - Freezer & Refrigerator Piggly Wiggly - various Sysco Food
2017-12
$440.00 $400.00 $444.98 $1,800.00
Expense
$7,060.00 $6,660.00 $6,215.02 $4,415.02
Fund Balance $7,500.00
$4,135.52 $4,076.32
$279.50 $59.20
$4,001.32 $3,937.32
Section 2
^
$2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87 $2,716.87
$2,716.87
$75.00 $64.00 $1,220.45
$4,783.13
^
2017-13 2017-14 2017-15 2017-16
Total PY2017 CACFP Program Transactions
11
^
Prior Yr Excess Program Fund Carryforward $7,500.00
$7,500.00
$0.00
Meal Claim Reimbursement (excluding CIL)
$0.00
Cash-in-Lieu Reimbursement
Program Revenue - Section 2
Other Income
$0.00
Total Program Revenue $7,500.00 $0.00 $0.00 $0.00 $0.00 $0.00
Section 3 $0.00 $0.00
^ $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $7,500.00
^
Section 1
^
12
Labor Executive Staff
Labor Management Labor Staff Other Staff Food
$273.99 $1,800.00 $279.50
$400.00
Supplies & Equipment
$0.00
Purchased Services
$0.00
Media Cost
Program Operating Expenses - Section 3
Facilities & Space
$400.00
$400.00
Contracting Organization Cost
$0.00
Unaffiliated Facility Cost
$0.00
Other Operating Expense
$0.00
Total Operating Expenses
$0.00
$400.00 $400.00 $273.99 $1,800.00
Section 4
^
$776.65
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $4,053.34
^
$679.50
$279.50 $59.20
$443.80
$2,197.19
$59.20
$332.85
$443.80
$0.00 $64.00
$332.85
$64.00
$0.00
Section 2
^ ^
13
^ Section 3
^
$443.80
$443.80
Labor Labor Executive Management Staff Staff
$0.00
$40.00
$40.00
$0.00
$0.00
Media Cost
$0.00
$0.00
Contracting Other Organization Administrative Expense Cost
Program Administrative Expenses - Section 4
$170.99
$75.00
$245.99
$0.00
Labor - Facilities Supplies Other & & Purchased Financial Staff Space Equipment Services Cost
$0.00
Indirect Cost
$0.00
$75.00 $0.00
$0.00 $0.00
$40.00 $0.00 $170.99 $0.00
$0.00
YES
YES YES
YES YES
YES YES YES YES
YES
Did the financial transaction amount get fully distributed among budget categories? YES / NO
$443.80
YES YES YES YES YES YES YES YES YES
Total Administrative Expenses
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $729.79
14
Showing the Payment Has Been Made
15
100
/
Milk cartons
1000 Sunshine Ln Happy TX 12345-6789
Invoice #1003
First Bank of Happy
20
Happy Cow Milk Company
Fifty Nine and
John Doe HUNGRY KIDS INC 123 Hungry Dr. Happy , TX 79999
SECURITY FEATURES 1. Microprinting around border on face 2. Laid lines on back 3. The words “ORIGINAL
59.20
National Bank of Dairyland Dairyland, TX >345678912
