1 / 67

Financial Management – Child and Adult Care Food Program (CACFP) FNS Instruction 796-2 Revision 4

Financial Management – Child and Adult Care Food Program (CACFP) FNS Instruction 796-2 Revision 4. Presenter: Susan Weeks USDA - Food and Nutrition Service Child Nutrition Programs. What is FNS Instruction 796-2? CACFP financial management guidance to State agencies and institutions

aquila
Télécharger la présentation

Financial Management – Child and Adult Care Food Program (CACFP) FNS Instruction 796-2 Revision 4

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financial Management – Child and Adult Care Food Program (CACFP) FNS Instruction 796-2 Revision 4 Presenter: Susan Weeks USDA - Food and Nutrition Service Child Nutrition Programs

  2. What is FNS Instruction 796-2? • CACFP financial management guidance • to State agencies and institutions • to develop financial information • to comply with CACFP regulatory requirements

  3. Where can I find the FNS Instruction 796-2? The FNS Instruction 796-2 revision 4 can be found on the USDA website at http://www.fns.usda.gov/sites/default/files/796-2%20Rev%204.pdf

  4. The FNS Instruction 796-2 has 12 Parts: • Parts • I. Purpose • II. Authority • III. Abbreviations • IV. Scope • V. Definitions • VI. Monitoring Nonprofit Food Service Status

  5. The FNS Instruction 796-2 has 12 Parts: • Parts (cont.) • VII. Basic Guidelines for Determining Allowability of Costs • VIII. Standards for Allowable Costs • IX. Basic Guidelines for CACFP Payments and Use of Funds • X.Food Donation • XI.Implementation • XII.Office of Management and Budget Approval

  6. The FNS Instruction 796-2 has 10 Exhibits: • Exhibits • A. Glossary • B. Food Cost • C. Index • D. Suggested Format for Recording Equipment and Depreciation • E.Suggested Format for the Cost of Goods Used

  7. The FNS Instruction 796-2 has 10 Exhibits: • Exhibits (cont.) • F. Suggested Format for a Purchase Record • G. Suggested Format for Inventory Reconciliation • H. Suggested Format for an Inventory Record • I. Costs Requiring Additional Approvals (new) • J.Questions and Answers (new)

  8. What is the purpose of FNS Instruction 796-2? • Key goal: Assure that CACFP costs are: • allowable • for effective and efficient operation • of the nonprofit food service • to comply with CACFP requirements.

  9. How to use FNS Instruction 796-2 to determine if costs are allowable : • Part VII - Basic Guidelines for Determining the Allowability of Costs - to ensure that costs using CACFP funds are allowable: • necessary • reasonable • authorized • within limits • current • single award • consistent • net cost • allocated • documented • disclosed • approved

  10. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Necessary

  11. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Reasonable

  12. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Authorized

  13. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Within Limitations

  14. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Current

  15. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Not in Multiple Awards

  16. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Consistent

  17. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Net Cost

  18. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Allocated

  19. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Documented

  20. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Disclosed

  21. FNS Instruction 796-2: Allowability of Costs • To be allowable, CACFP costs must be: • Approved

  22. What changed in FNS Instruction 796-2 revision 4? • of language • Updated references (7 CFR 226 and 2 CFR 225) • Hyperlinks to regulations and handbooks • Text boxes added to emphasize key points • Examples added … CORRECTIONS & CLARIFICATIONS

  23. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Four acronyms were added (Part III): • DCH – Day Care Home • SA – State Agency • SEA – State Education Agency • U.S. GAAP – Generally Accepted Accounting Principles in the United States

  24. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Part VI D – Excessive Nonprofit Food Service Account Balances • Excess funds in the CACFP nonprofit food service account may be transferred to allowable costs in other Child Nutrition Programs.

  25. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Part VI D – Excessive Nonprofit Food Service Account Balances (cont.) • With specific prior written approval, excess funds may be used for increases in salary and benefitsto improve food service operations for the benefit of the participants.

  26. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Several updates in Part VIII: • Communications and Technology (I-8) • - ADP equipment and software are allowable • (ADP = Automated Data Processing)

  27. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Several updates in Part VIII (cont.): • Depreciation and Use Allowance rewritten (I-13) • Three Depreciation Methods: • Straight Line • Units of Output • Accelerated Depreciation

  28. What changed in FNS Instruction 796-2 revision 4 (cont.)?

  29. What changed in FNS Instruction 796-2 revision 4 (cont.)? Units of Output Method Depreciation = Cost – Salvage Value_____ x # Units of Output ExpenseTotal Est. Units of Output (Life) in time period Example: Depreciation = ($24,000 – $3,000) x 30,000 = $0.14 x 30,000 = $4,200 Expense 150,000

  30. What changed in FNS Instruction 796-2 revision 4 (cont.)?

  31. What changed in FNS Instruction 796-2 revision 4 (cont.)? Example: Depreciation Expense= (Cost – Accumulated Depreciation) x Factor Double Declining Factor if lifetime = 5 years: 1/5 x 2 = 0.4 Year 1 = $24,000 x 0.4 = $9,600 Year 2 = $14,400 x 0.4 = $5,760 Year 3 = $ 8,640 x 0.4 = $3,456 Year 4 = $ 5,184 x 0.4 = $2,073.60 Year 5= $ 3,110.40 – 3,000 (salvage value) = $110.40

  32. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Part VIII Updates (cont.): • Direct Expensing of Equipment and Other Capital Expendituresrewritten (I-16)

  33. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Part VIII Updates (cont.): • Facilities and Space Costs (I-17) • - Health inspection fees allowed for Afterschool and Outside School Hours Care

  34. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Part VIII Updates (cont.): • Materials and Supplies (I-27) • - Expendable purchases limit increased from a 30-day to 90-day supply

  35. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Update of Part IX (B-1a) Reimbursement for Sponsoring Organizations of Day Care Homes • (due to Healthy Hunger Free Kids Act of 2010) • Added 10% Carryover (unspent Day Care Home Sponsor Administrative Funds) • >10% Must be Returned to the State Agency • First-In First-Out (FIFO) accounting

  36. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Three Glossary Terms were added (Exhibit A): • Accrual Accounting • Arms-Length Bargaining • Reimbursement

  37. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Updates to Food Costs (Exhibit B): • B. Allowable Food Costs • Costs associated with growing foodto be used in the meal service • (Seeds, fertilizer, labor, plot rental, and • associated nutrition activities.)

  38. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Food Costs Updates - Exhibit B (cont.): • B. Allowable Food Costs • FSMCs and Processors must credit institutions for value of USDA Foods received

  39. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Food Costs Updates (Exhibit B): • All institutions must adhere to Federal procurement procedures for the CACFP. • USDA’s web-based procurement training (available online from NFSMI).

  40. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Updates to the (Exhibit C): • Additional subjects were added: • ADP Equipment • Computers • Inspection Fees

  41. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Two Exhibits were added: • Exhibit I. Costs Requiring Additional Approvals new • Exhibit J. Questions and Answers new

  42. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Exhibit I: Costs Requiring Additional Approvals • (Refers to Part VIII – Standards for Allowable Costs • Section I – Selected Items of Cost) • Table sorted by “Topic or Cost” • “Section” and “Page #” • “Description” • “Type of Additional Approval Required”.

  43. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Exhibit I - Types of Required Additional Approval: • “Prior Approval” (State agency’s permission prior to actually incurring the costs) • “Specific Prior Written Approval” (State agency’s permission in writing in advance of incurring the costs) • “Specific Prior Written FNS Regional Office Approval”

  44. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Exhibit J: Questions and Answers (by topic) • “Allowable Costs” • “Benefits” • “Depreciation” • “Facilities and Space” • “Generally Allowable Costs” • “Income to the Program”

  45. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Exhibit J: Q and A Topics (continued) • “Labor Costs” • “Less-than-arms-length transactions” • “Memberships, Subscriptions, and Professional Organization Activities” • “Nonprofit Food Service” • “Outreach” • “Physical Activity”

  46. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Exhibit J: Q and A Topics (continued) • “Procurement” • “Rental Costs” • “Training” • “Travel”

  47. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Exhibit J: Questions and Answers • Topic: “Physical Activity” (includes limiting screen time) • Question: Are sponsor publication, printingand reproduction costs relating to encouraging physical activity and limiting screen time of participants allowable?

  48. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Exhibit J: Questions and Answers (cont.) • Answer: It depends. • USDA has made available free resources. Under certain circumstances, costs to reproduce and distribute materials may be allowable.

  49. What changed in FNS Instruction 796-2 revision 4 (cont.)? • Exhibit J: Questions and Answers • Topic: “Physical Activity” • Question: Will any physical activity equipment be considered and allowable cost?

More Related