RPEP INC.
FINANCIAL MANAGEMENT

RPEP Inc. REQUIRES All Centers to Maintain a
Separate Bank Account for the CACFP program
beginning January 2015.
(No Co-Mingled Accounts Allowed)

CACFP is a separate not-for-profit business within
your business

Please submit, Bank Statements, Payroll Reports,
Cancelled Checks, etc. to support Claim.

You must show how you spend CACFP
reimbursement in an allowable way.
IS

Federally Funded
 Passed through RPEP Inc.
IS NOT

“Free” money

A Not-for-profit Food
Program Operation.

Funding for personal
expenses

Healthy meals to eligible
participants


Optional Program
To purchase soda/coffee for
teachers, non-healthy and/or
not enough food and snacks
for participants

Heavily Administered

Entitlement Program

For the disorganized
 Detailed program
requirements.
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
CACFP funds used solely for
operation of food service for enrolled
participants.

Cannot make a profit on Federal
food program

No more than 3 month operating
balance per program year

Documentation to support actual
costs

Must have other source of income
 Costs Not Covered
 Temporary interruptions in program
payments
 Unallowable program costs
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1. Accounting System
▪
▪
Does your agency have one?
If so is it in compliance to
GAAP!
Generally Accepted Accounting Principles (GAAP)
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
Cash/Accrual/Modified Accrual
 Cash System: Recognizes revenues and costs when cash is received and bills are paid.
 Accrual System: Recognizes revenues and costs when costs are incurred and uses a
payable and receivable system.
 Modified Accrual System: Certain expenses are reported on an accrual basis.

Compliance with Generally Accepted Accounting Principles (GAAP)
 Rules for the accounting of costs and revenues
 Resource: http://www.fasab.gov/accepted.html or Ask your staff Accountant

Financial Reports
 General Ledger / Check Register
 Profit/Loss Statement
 Balance Sheet

Co-mingled CACFP funds with Agency funds
 Method of separation (ie. independent account codes)
 Approved allocation plan for shared costs
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Acceptable
Credit card
Checking account
Charge Account at
local store
 Invoice or COD



 Food delivery vendor
* Information per GAAP
Unacceptable
 Cash Purchases
(without proper
receipts or invoices)
Cash Purchases must have
paper trail!
 Including cash-back

Food Stamps
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Operational

Kitchen
 Meals
▪ Preparation
▪ Delivery
▪ Cleaning
 Menus
 Purchasing /
Vended Meals
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
Allowable
Food (consumable)

Kitchen Supplies/Nonfood

Contract / Vended Meals

Food Program Personnel
Operational

e.g. Grocery shopping

Equipment Purchase/Rental
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 Costs in purchasing ingredients
for menu items (Food Supplies)
AND/OR the cost of purchasing
itemized CACFP meals from an
outside vendor (Contracted
Service) that are served to the
participants
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
Consumable food products used to create
menu items served to program participants.

Costs can include delivery costs.

Report on the Food Supplies/Food Costs line
On the Operating Form.
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
Outside food service, not related to
agency.

Contract approved with RPEP/DECAL

Provide all CACFP components.

Report as Food/Contracted Services on
CACFP Operating Cost Form.
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
Costs of purchased, prepared meals are
contracted service costs

Contract must be signed prior to beginning
date (contracted service)

The vendor should keep production records
(a record of quantity of food prepared)
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
Unallowable
Bad Debts, Fines, Penalties

Non food program food costs
 Coffee, non-CACFP personnel
meals (i.e. car
payment,mortgage,maintenance,
non-employee/family member)
 Entertainment
 Toys, Cribs, Roof,etc

Purchase of food for personal use
 Money received must be kept in
food program account. Must
have strict internal policy.
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 Menu planning
 Food purchasing
 Cooking
 Serving the food
 Cleaning-up after the meal
 Meal Attendance
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All
wages
 Salaries
 Employee benefits, and the
share of the employee taxes
paid by the center
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
Review of Food Program Receipts/Invoices

Food Service Labor Time Sheets/and Time
Distribution Reports

Payroll Statements

Balance Sheet or Bank Statements

On-Site Financial Reviews
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 Operating
Cost Form
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The CACFP funds are replacing funds you
are now spending
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
CACFP Reimbursement is based upon:




Number of meals your Center serve to the
children in your care
Eligibility of the participants
There MUST be Food Services Expense to
Account for the Food Reimbursement Need.
MUST BE ALLOWABLE and CREDITABLE
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
Costs should equal
expenditures charged
to food service
program

Amounts must be
supported by actual
documentation – NO
ESTIMATES
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
CACFP is part of your overall organization.

Funds received to run organization must also
be available to fund CACFP costs not
covered by reimbursement.

Food Stamps is not another source of
income for the center.
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Plan, budget, and
organize the funds
available will help you
to maximize your
CACFP reimbursement.
No planning, using
funds on non-program
needs, no
accountability of funds
spent will result in
repayment of funds,
loss of funding and/or
participation
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

SA Reviews (continued)
 Any non-food program/unallowable cost found to be paid
with CACFP funds will be disallowed.
▪ May result in repayment to RPEP/DECAL
▪ CACFP funds exceed CACFP costs
▪ MUST BE ORGANIZED
▪ Be able to show and explain your organizations system
USDA Reviews
 Monitoring SA as part of Management Evaluation
 RPEP Inc. will work with Child Care Centers on Corrective
Action (if needed)
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




Milk 
Beer & Liquor 
Personal Groceries
Spices
Bread 







Crab meat 
Soda Pop 
Rabbit Food
Teacher Meals

Refrigerator

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



Dishes 
Milk 
Cups 
Arts/Crafts Supplies
Toilet paper 
Cooking utensils 
Dishwashing

detergent
  Paper towels used in
the classrooms




Need to be separated from food supplies on
receipts.
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
Food Service labor
 Operational Exp.

Admin. Labor 
 Only CACFP %

Vended Meals 
 Contracted Service



Kitchen Equipment
Gas for Vehicles
 Only CACFP %



Maintenance/Repairs
 Only CACFP %

CACFP funds should always be spent on food and
kitchen supplies FIRST
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Receipts 
Invoices 
Payroll (timesheets,
paystubs, etc.)

 Checkbook/check
register

 General Ledger




CACFP Claim

documentation
 Bank Statements 
 A shoebox or
garbage bag 
 The number to your
accountant


Retained for 4 years (3 yrs plus the current)
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Financial Management:

Guidance Memo 11
 State agency Financial Management policy Child and Adult Care
sites (Sponsors & Independent)

▪ Instructions Completion of NPFS Report(s)
▪ Allowable/Unallowable costs
▪ Fiscal Action Procedures
FNS Instruction 796-2 (rev. 3)
 Abbreviated version
 Available Electronically – User Friendly
 http://dpi.wi.gov/fns/centermemos.html (under Guidance memo
11)
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Please contact
RPEP Inc
950 Eagles Landing Pkwy, Suite 429
Stockbridge GA 30281
678-289-8356
For any questions !
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Day Care Centers
CACFP Training 2014