CASH
MANAGEMENT
Bob Deegan, Deputy Director, Special Nutrition Programs
USDA Food and Nutrition Service, Northeast Regional Office
Why talking about Cash Management?




$418,876 stolen from Concord NH 1999-2006 by
District’s bookkeeper
$335,000 from East Lyme CT by FSMC’s FSD 20042010
Lots of smaller thefts, but all have lack of basic
management controls in common
Keeps your food service operation from making as
much money and from increased financial
independence with the District
Who’s food service operation has
had a theft?
Should be part of your Business Plan

Cash management is one
piece of a well run and
profitable business operation
along with:
 Inventory
management
 Production records
 Portion control/plate waste
 Effective procurement
 Marketing
 Etc.
Cash Management at the POS


If you don’t have a computerized operation – lobby
your District to get one
Minimize time & confusion at the POS by:
 Use
25 cent increments in pricing to the greatest extent
 Encourage families to pay online or add money other
time than at lunch (can Main Office collect money?)
 Use
pre-numbered receipts
 Endorse checks right away

Train cashiers, especially on what constitutes a
reimbursable meal, and spot check them
 Look
for “stuff” by the POS (bobby pins, gum, etc.)
Cash Management at the POS
cont’d

Count-out cash drawers at the end of shifts
 Protects
cashiers from future suspicion
 Set a tolerance limit for shortages/overages




One drawer per person
Document any cash transfers between drawers
Keep good records
Balance system totals by reconciling daily cash
register readings to daily deposits
Now what do I do with the $


Establish written procedures for how cash will be
reconciled and deposits made
Limit/control access to cash
 As
few staff as possible should handle cash
 Use two-person control to segregate duties between
person receiving cash and person maintaining the
accounting records

Need increased oversight if staffing levels prevent
two-person control
Now what do I do with the $ cont’d

Get a secure storage container or use the school’s
safe
 Don’t
keep cash in unlocked desk drawers, file cabinets,
etc.

Make regular deposits
 Always


reconcile deposits promptly
Keep good records
Use bonded couriers for bank deposits if not
making them yourself
Communications - The most important
part of Cash Management

Talk to people and learn from their advice/mistakes
 School
business officers
 Good
 Fellow
 SNA
people to reconcile monthly bank statements with
food service managers, directors
members good starting point
 Others
in retail businesses with high cash flow
 Universities
and colleges tend to have very comprehensive
Cash Management procedures
Cash Management

It’s not just $ that’s walking out the door
Cash Management




Use good inventory management and conduct
periodic inventories of highly pilferable foods and
equipment
Mark equipment
Use production records to detect changes
Consider installing cameras at key locations
 Make

sure they are aimed to show faces
Only use clear plastic trash bags
My Plate
Questions?