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