PRE-CON 2 16 VCA BASICS 1
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1 1 PRE-CON 2 16 VCA BASICS
2 2
3 3 ARE YOU IN THE RIGHT PLACE? This session is NOT the place to evaluate your VCA it is intended to address the following: What is VCA? Why is VCA important? When will an organization s VCA be evaluated? Things to keep in mind Practical exploration of materials presented Common errors/issues Note: ISDs are not required to demonstrate VCA at time of application.
4 4 YOU promise to follow HOUSE RULES for this session: Turn off the ringer on your phone. Sit next to someone that you DO NOT KNOW so you can fully benefit from the session activities. Sit in the front of the room, if possible. Leave the room if you need to text or take a call; come back when you are ready. Be back on time from breaks doors will close promptly at the designated time and the session will continue. PARTICIPATE IN ALL ACTVITIES! WE promise that: We will give you our undivided attention during this session. We will share our experience and knowledge, and some Best Practices, to enable you to navigate VCA at any stage of the program. We will start the session on time. We will end the session on time.
5 5 ABOUT THIS SESSION This is a 4 hour session. You will need something to write with to fully participate in this session s activities. This session is covering A LOT of information in a fairly small amount of time. Use the notecards provided to write down any question(s) that may come up we ll answer what we can during class. If there are any questions that we do not have the time to address during this session and/or that do not apply to the group, we will post the answers on SquareMeals after the conference. Resource materials: USDA CACFP Handbooks TDA CACFP Handbooks 7 CFR Part 226 Disclaimer: The examples and ideas included in this session are meant as viable options to teach and provide additional guidance to each organization. There are other approaches not addressed in this presentation that can be utilized to demonstrate VCA. Please refer to applicable Federal & State regulations for additional guidance.
6 6
7 7 V C A
8 8 WHAT IS VCA? Capability Viability Accountability VCA
9 WHY IS IT IMPORTANT IN THE CHILD AND ADULT CARE FOOD PROGRAM (CACFP)? 9 The federal CACFP regulations require all participating institutions to demonstrate financial viability, maintain adequate administrative capability, and have internal controls for accountability. These requirements were put into place to ensure that tax payer money is being used effectively for the intended purpose.
10 10 CONSIDER THESE QUESTIONS: How many years have you/has the organization been in business (operated)? More years = indicator of viability Do you/does the organization have a steady history of community involvement and/or services? History of community involvement and/or services can be an indicator of capability How is business? Net income/increase in net assets (each year and/or cumulative) = indicator of viability & capability Trends in cash flows (increases in cash and total net asset position) = indicator of viability & capability
11 11 WHEN WILL AN ORGANIZATION S VCA BE EVALUATED? The Texas Department of Agriculture (TDA) will assess each organization's viability, capability, and accountability during the initial application process and continue to monitor viability, capability, and accountability by requesting updates and conducting administrative reviews. FYI: Based on compliance data, a Renewing CACFP CE may be required to complete a VCA evaluation at the time of application renewal. If this is the case, the CE will be notified via .
12 12 SUBMITTING VCA DOCUMENTATION FOR REVIEW Provide current, accurate, and complete information. Provide policies and procedures that answer WHO, WHAT, WHEN, WHERE, WHY, HOW and HOW MUCH. Provide policies and procedures that are easy to understand and follow. Provide someone else s forms. Provide outdated information. Provide inaccurate information.
13 13 WHAT DOCUMENTATION IS REQUIRED TO BE SUBMITTED TO TDA? Documentation requirements will vary depending on: The type of CE you/your organization represents (Independent Center, Sponsor of Centers, Sponsor of Day Care Homes, or a Dual Sponsor), and Any history and/or issues that may be identified during review.
14 14 STANDARD DOCUMENTATION REQUIRED FOR A NEW INDEPENDENT FOR APPLICATION Financial documentation Audited financial statement; or balance sheet and income statement. Organizational Chart Organization s Legal Documentation Articles of Incorporation, Assumed Name Certificate, Certificate of Formation (all that apply) NOTE: The above noted required documentation may not be all-inclusive of the documentation that is required for your particular application as requirements may vary based on the type of organization and/or available review history.
15 STANDARD DOCUMENTATION REQUIRED FOR A NEW SPONSOR FOR APPLICATION 15 Performance Bond (Form ID: CACFP-005) Requests to waive the performance bond must be submitted in writing via CACFP.Bops@TexasAgriculture.gov Comprehensive Financial Statements Balance Sheet, Income Statement, and Statement of Cash Flow (For Profit) OR Comprehensive Financial Statements Statement of Activities, Statement of Financial Position, and Statement of Cash Flow (Non-Profit) Policies and procedures that assign CACFP and Civil Rights Responsibility Outside Employment Policy Organizational Chart Site Monitor Review procedures AND/OR Provider Monitor Review procedures Site Recruitment Plan AND/OR Provider Recruitment Plan Organization s Legal Documentation Articles of Incorporation, Assumed Name Certificate, Certificate of Formation (all that apply) NOTE: The above noted required documentation may not be all-inclusive of the documentation that is required for your particular application as requirements may vary based on the type of organization and/or available review history.
16 16 COMMON ERRORS FOR APPLICATION VCA information submitted for application cannot be verified during an on-site review. Budget information submitted does not match financial documentation submitted. Incomplete P&Ps, and/or P&Ps do not have the correct organization name. Staffing information does not match across the application materials submitted.
17 17 BEST PRACTICES SUBMITTING FOR VCA EVALUATION ALWAYS remember this is BUSINESS. BE HONEST! Don t wait until the last minute to prepare your VCA information for review. This includes training staff More information is always better than not enough. Documentation, documentation, documentation Spell-check
18 18 WHAT QUESTIONS MUST THE VCA ANSWER? 1. Who 2. What 3. When 4. Where 5. Why 6. How 7. How often/how much
19 LET S BREAK IT DOWN 19
20 WHAT IS VIABILITY? 20
21 21 ASK YOURSELF: Does your organization have an operation that will be here tomorrow and the next (even without being part of the Program)? HINT: The argument that you cannot pay staff until you are reimbursed by TDA is contrary to the characteristics noted above for VCA
22 22 VIABILITY IN BUSINESS FINANCIAL MGT. Financial Management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. Efficient Management of money for CACFP: Performing or functioning in the best possible manner with the least waste of time and effort; having and using requisite knowledge, skill, and industry; utilizing a particular commodity or product with the least waste of resources or effort (usually used in combination) all ensuring efficient use of program money/funds. Effective Management of money for CACFP: Ensuring and maintaining accountability with program rules and regulations because operating in conflict with the program rules and regulations causes money/funds to be lost, and possibly becoming a debt/liability. Objectives of organization for CACFP: Provide a nonprofit food service program to qualified children and/or adults in compliance with program rules and regulations while ensuring the continued financial health of the organization. NOTE: Financial Management includes budgeting, accounting, costing standards, management of property, procurement standards, and fiscal audits. Records of these activities must be supported by source documents to accurately and completely disclose the sources and application of funds.
23 23
24 24 Activity #1: In writing: Explain your organization s viability status for a reader that DOES NOT have any familiarity with your organization. FYI: Be prepared to share and discuss!
25 emember: Who, What, When, Where, Why, How, and How Much/How Often? 25
26 BREAK TIME 26
27 WHAT IS CAPABILITY? 27
28 28 ASK YOURSELF Do you/your organization not only WANT to be in the Program but do you/does your organization have the (cap)ability to operate all aspects of the Program?
29 29 ADMINISTRATIVE CAPABILITY IN BUSINESS Remember, your organization is a BUSINESS first. So which aspect(s) of a business is/are demonstrative of Administrative Capability? One aspect would be Staffing Total number of staff Qualifications of staff Staffing plan
30 30 DOES THE ORGANIZATION HAVE Staff that has/have experience areas applicable to running the Program? This could be demonstrated by experience with the following: General Business, General Management, Accounting & Finance, Food Management, Grant Monitoring & Compliance, and/or Food & Nutrition Programs.
31 31
32 Activity #2: Discussion 32 Discussion topic - Explain to your partner(s) how your organization ensures and demonstrates capability. Remember: Who, What, When, Where, Why, How, and How Much/How Often?
33 SO, ARE YOU CAPABLE? 33
34 34 WHAT IS ACCOUNTABILITY? FYI: For CACFP there are 2 main areas of Accountability: Fiscal and Program.
35 ACCOUNTABILITY 35
36 36 POLICY VS. PROCEDURE WHAT IS THE DIFFERENCE? Policy = a high-level overall plan embracing the general goals and acceptable procedures Example: It is the policy of that the organization will file claims on the 1 st of the month (or the following business day if the 1 st is a non-workday) for the preceeding month. Procedure = a series of actions that are done in a certain way or order : an established or accepted way of doing something Example: Usually files claims on the 1 st of the month for claims accrued in the pre-ceeding month. Think Follow-Through : If the P&Ps are not adhered to in the operations of the organization it s an indicator that there may be an issue with accountability.
37 37 ASK YOURSELF: Are you willing and able to take ownership of the Program operations?
38 38
39 Activity #3: 39 In writing, explain how your organization ensures and demonstrates fiscal and program accountability for a reader that DOES NOT have any familiarity with your organization. Remember to answer the following: Who, What, When, Where, Why, How, and How Much/How Often? Be prepared to share and discuss!
40 Share your assignment with your neighbor; discuss and give honest feedback: Did the assignment answer: Who, What, When, Where, Why, How, and How Much/How Often? 40
41 BREAK TIME 41
42 42 KEEP IN MIND Not all CEs are the same = not all situations are the same. We have not exhausted all indicators of VCA within this presentation; we ve focused on general concepts that will allow you to make an informed decision. VCA must be maintained for the entire duration of your organization s participation in the CACFP.
43 43 COMMON ERRORS FOR VCA MAINTENANCE COMPLIANCE Most compliance findings occur because a CE not following their own written policies & procedures, and/or because there is a lack of internal controls in place at the organization. Internal controls are the steps in place to make sure the organization is operating effectively and are significant indicators of capability and accountability A large number of compliance issues are caused by a CE failing to maintain the appropriate documentation. ALL documentation related to the CACFP MUST be maintained, and be provided to TDA upon request, by the CE for a minimum of three (3) years.
44 VCA Crossword 44
45 45 Viability Capability RECAP Accountability VCA VCA - Maintenance VCA - applications Use the Action Plan handout to prepare for application for participation in the CACFP. VCA - Reviews VCA - Renewals
46 46
47 47 PLEASE COMPLETE THE SURVEY BEFORE YOU LEAVE THIS CLASS
48 48
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