CACFP FINANCIAL MANAGEMENT

Transcription

1 5-1 CACFP FINANCIAL MANAGEMENT The Importance of Good Financial Management All required records must be kept at least three years after the end of the Agreement year or one year after the audit of that year has been termed final, whichever is later. It is to the institution s advantage to keep all necessary records, in an organized fashion, for at least this period of time. Good record-keeping demonstrates to the DHHS Office of Child & Family Services, CACFP Agreement Administrators, Department of Health & Human Services Auditors, and the sponsoring institution s independent auditor, that the institution has the administrative capability to administer the CACFP. A complete set of records is the institution s verification that the CACFP was operated in a fashion consistent with USDA and State Agreements and guidelines. Records are also the institution s verification that information submitted on claim forms for reimbursement is accurate. Claims that cannot be substantiated with proper records will not be paid. If an institution has been paid for a claim, and records do not exist to fully verify claim information, a request for repayment will be generated. The Federal fiscal year for the CACFP begins October 1 st and ends September 30 th. However, the institution will be audited on its fiscal year. Audits will be conducted in accordance with the Maine Uniform Accounting and Auditing Practices for Community Agencies and all applicable Federal publications. RECORD KEEPING At a minimum, the following records should be maintained on site, or in a central location, for at least three years after the end of the Agreement year to which they pertain: Cash register tapes, invoices, delivery slips, and receipts to support the dollar amount incurred for food costs and non-food supplies; Payroll records showing each employee s gross pay and fringe benefits to support labor cost incurred; A written record of how the food services costs of purchased services was determined. This category includes water, gas, and electricity for cooking and dishwashing, and a percentage of the garbage/trash service; A written time study, bookkeeping invoice, or other documentation to support program administrative costs, including time studies for any shared labor costs; Menu/Production Reports: Menus for the meals and the total quantities of specific food items used for each meal service must be maintained for all meals claimed for reimbursement in Centers. Menus showing all food items served as part of the reimbursement type must be maintained for all Family Day Care Homes (FDCHs). Menu/Production reports include:

2 5-2 a) Month/day/year; b) Each component served; c) Quantity prepared for each food item; d) Number of children by age group, child care attendants, and/or adult day care participants and adult day care attendants served; e) Substitutions to cycle menus listed; Checkbooks or cancelled checks; Meal count/attendance records; Copies of all CACFP claims for the last 3 years, and printed reimbursement record; CACFP Income Eligibility Forms (IEFs) for each child or adult day care participant enrolled in a Center, with the exception of children enrolled in Head Start, At-Risk Centers, Emergency Homeless Shelters, and Foster children who have been formally placed by a State welfare or court system. For FDCH providers who claim their own children, copies of IEFs and accompanying income verification. For children claimed at the higher rate in Tier II Mixed FDCHs, copies of the IEFs showing the income level of individual households, plus an enrollment form for each child claimed in each home; For sponsors of multiple sites (including FDCHs): documentation of each site-review, problems noted and corrective action taken and the Center administrative costs associated with operation of the program including all personnel records listed above; Copies of all CACFP Agreements for the last 3 years along with any revisions.

3 5-3 OPERATING COSTS: Centers and sponsoring institutions of Centers are required to maintain records to verify the costs of operating and administering the CACFP. Centers are also required to maintain records to demonstrate that their food service operation is nonprofit.* To do this, sponsors will need to show that all program reimbursement funds were used solely to pay expenses of the food service, or to improve the food service, principally for the benefit of the enrolled participants. *For-Profit Centers must maintain records to verify that at least 25% of their enrollment or licensed capacity, whichever is the lesser of the two, qualifies for Free or Reduced-Price meals on a monthly basis. Allowable operation costs are those program expenses that may be used to support the institution s claim(s) for reimbursement. An operating cost is a program expense that specifically arises from the food service, such as the cost of food, food service labor, or meal preparation, purchase of small appliances, etc. *Contact CACFP Agreement Administrator for instructions before making any equipment purchases to be charged to CACFP Funds.

4 5-4 The following is an explanation of each expense: Labor Costs: The direct labor cost of program labor consists of work performed during the claiming month that is necessary to the operation of the Center food service or FDCH sponsorship. The cost of labor includes the amount of wages earned plus fringe benefits, including Social Security and retirement benefits paid or incurred during the reporting month. Incurred costs documented one month cannot be documented again when paid. There are two types of labor costs in the Child and Adult Care Food Program: Administrative Labor: Any time spent in the CACFP in performing non-food service duties. This may include a portion of the salary of the Director who manages the food service program, or a clerk assigned to maintain CACFP records. Food Service Labor: Any personnel expense incurred in the purchasing of food, preparation of food, serving food, or cleaning the kitchen and dining room at the conclusion of the meal. The sponsor of a Center has the option of documenting program labor costs for: a) Planning, preparation and serving of meals; b) Clean-up after meals; c) Supervision of children while they are eating; d) Preparation at the feeding site of records required for the program such as attendance counts, menu records, production reports, etc. Use of labor costs as verification requires maintenance of payroll and supporting time studies, or a daily time log, to identify how much time is spent in meal related activities and at what cost. Sometimes an employee s duties are split between the CACFP and other duties. This is considered a shared labor cost. If an employee does not keep a daily record of the amount of time spent on the CACFP, it will be necessary to conduct a four-week time study. The employee must record the amount of time-spent daily on the CACFP on the time-study form enclosed or on a similar form. The percentage of time spent on the CACFP is then calculated and applied to the employee s salary every month. A time study should be conducted at least annually for each employee who does not spend his/her entire time on the CACFP.

5 5-5 DIRECTIONS FOR COMPLETING THE WORKSHEET Each employee who spends less than 100 percent of his or her time in the CACFP should complete this four-week time study. All such employees should complete this report during the same four weeks. All affected employees should record the actual time spent to the nearest ¼ hour. Illness and holiday/vacation time are not counted. At the end of the four weeks the manager will compute the percentage of time spent on the food service for each employee. Food Service Percent = Total Food Service Hours Total Hours Worked The percentage for each employee is then multiplied by the employee s total salary and benefits for the month claimed. The resultant dollar figure is the employee s portion of the indirect labor/administration cost (where applicable) for the month. The sum of the indirect labor costs will be the total indirect labor cost. Example: A janitor works eight hours per day at $10.00 per hour, including benefits. Based on the time study it is determined that the janitor spends 30 hours on the CACFP out of a total of 160 hours worked during the four-week period. The charge to the CACFP will be: = 18.75% of the janitor s salary During the month of February, the janitor s salary was $1600. The documentation for labor for the month should include: 18.75% x $1600 = $300

6 5-6 Office Supplies: Office supplies used by the CACFP administration or FDCH sponsor. Office supplies are defined as any item costing under $1,000 and expected to last less than two years. It includes tablets, envelopes, pens, etc., but can also include small calculators and other minor office equipment. Invoices, receipts or billings must support expenses charged to CACFP administration. Postage: Postal charges attributable to CACFP administration or FDCH sponsorship are an allowable expense under the CACFP. Receipts, billing, or logs must support expenses charged to CACFP. Mileage: Whether a vehicle is owned by the institution or the employee and used in the program for performing administrative duties such as visits to Centers or FDCHs for monitoring or training, a mileage allowance of not more than the amount State employees may be reimbursed (currently 44 per mile) may be charged to the Program. The mileage allowance is considered to be the full cost for operating the vehicle including fuel, depreciation, and maintenance, but excluding driver s salary. Documentation to support mileage allowances charged to the Program must include: records of the date of each trip charged to the Program, driver s name, number of miles traveled, the origin and destination of each trip, parking and toll receipts, and the reason for each trip. These records must be signed by authorized personnel and reviewed to assure costs are reasonable. The projected operating budget asks for mileage both in-state and out of state. The expenses associated with out of state travel would not normally be a direct part of administering a Center food service operation or FDCH sponsorship. Institutions projecting expenses for out-ofstate travel must provide complete written justification for the expense to their CACFP Agreement Administrator for approval. Equipment Purchases: Family Day Care Home and Center sponsors may purchase capital office equipment to be used in administration of Center meal and FDCH sponsorship. Capital equipment is defined as any equipment item costing more than $1,000 and expected to last at least two years. This includes typewriters, computers and software, desks, etc. Contact your CACFP Agreement Administrator in writing for approval before purchasing any capital equipment with CACFP funds.

7 5-7 CACFP Share of: It is assumed that the cost of Rental and Maintenance (cleaning, painting, etc.) and office utilities; listed on the budget form for either Centers or FDCH sponsorship administration will be shared with other programs, such as Head Start, etc. If so, these expenses must be cost shared between the Child and Adult Care Food Program and the other program(s). For example, an institution sponsoring both a Childcare Center and Family Day Care Homes must determine how much of the phone bill, rent, maintenance, and utilities will be charged to Center and how much to FDCH sponsorship. Telephone: Local telephone calls and monthly charges can be proportioned based on the average number of calls made for each program. If there is only one Childcare Center and a large number of FDCHs sponsored, it is assumed that the greater number of calls will relate to the administration of FDCHs. It is recommended that a study of the number of calls initiated be conducted during a one-week period every three months. Over the course of a year this should provide an acceptable average for each program. Long distance calls should be charged directly to the appropriate program. Office Rental and Maintenance: Rental and Maintenance charged can be allocated to each program based on square footage. As an example, assume the Childcare Center, office and kitchen is contained in an area of 2,000 square feet. The Childcare Center is 1,600 square feet and the office and kitchen are 200 square feet each. One person handles the FDCH administration with a desk and file cabinet using 50 square feet. The other 150 square feet is shared between Childcare Center administration and Child and Adult Care Food Program administration. Assume the participants eat meals and supplements in the Center and the annual square foot rental charge is $10.00 per square foot: 2,000 sq. ft. x $10 per sq. ft. = $20,000 $20,000 12months = $1, per month rental The center is open 9 hours per day and is also used as dining room. Breakfast, Lunch and two Supplements take 2 hours total. So 2 hours or 22% is charged to CACFP and 7 hours or 78% is charged to childcare. The same percentage can be used for the Childcare Center administration. The allocation would be as follows: FDCH administration- 50 sq. ft. x $10 = $500 annually $ months = $41.67 per month Kitchen is charged to Center CACFP 200 sq. ft. x $10 = $2,000 annually $2, months = $ per month

8 5-8 CACFP Administration and Meal Service is 22% of 1,750 square feet = 385 sq. ft. 385sq.ft. X $10 = $3,850 annually $3, months = $ per month Childcare Center is 78% of 1,750 square feet = 1,365 sq. ft. 1,365 x $10.00 = $13,650 annually $13, months = $1, per month. The monthly allocation for Rent and Maintenance expenses: FDCH Administration (2.5%) $ Center CACFP Administration (29.3%) Childcare Center Operation 1, , Office Utilities: Utilities such as water, electric and/or sewerage can be cost shared using the percentages shown above. Although the CACFP kitchen operation uses the majority of the water, electric and sewerage, attempting to determine usage by each would require each to be metered separately. The childcare operation uses its share if one considers the bathroom and laundry facilities. Other: This category is a catchall for all other expenses that are not covered above.

9 5-9 ALLOWABLE COSTS Compensation for Labor: Salaries and benefits of administrative personnel (secretaries, accountants, and others) necessary to support administrative activities. Payroll records are required to document these costs. Distribution of salaries and wages of employees chargeable to more than one program or other cost objective must be supported by appropriate time reports or approved time study methodologies that produce an equitable distribution of time and effort. To assure that administrative costs will be allowable, payroll and time distribution procedures must be designed to stand the test of an audit. Insurance: The cost of liability, bonding and, if applicable, professional liability insurance. Charges must be supported by bills, receipts, policies, etc. and costs allocated based on the relationship of the CACFP to all programs. If professional liability insurance is only required in the childcare program, then only the CACFP portion should be shown, if applicable. Payroll Preparation: The cost of preparing payroll and maintaining necessary related wage records is allowable to the extent that the expenditures are made for CACFP purposes. Printing and Reproduction: The cost of printing and reproduction services is allowable to the extent that the expenditures are made to meet CACFP needs. Taxes: In general, to the extent that taxes, or payments in lieu of taxes, which are legally required for Program administration, such costs are allowable. Payroll taxes will be shown as part of labor costs. Training: The cost of attending or providing training sessions customarily conducted for employee development for Program needs is allowable. This includes training expenses associated with the annual training session provided for FDCH sponsors for the CACFP.

10 UNALLOWABLE COSTS Any expense or item not included in the institution s budget approved by the CACFP Agreement Administrator. Bad Debts: Any losses arising from uncollectible accounts and other claims, and related costs. Capital Expenditure Costs for: 1) Acquisition of land, or any interests in land. 2) Acquisition or construction of buildings of facilities. 3) Repairs that materially increase the value or useful life of buildings, facilities, or nonexpendable equipment. 4) Other capital assets including vehicles. Contingencies: Contributions to a contingency reserve or any similar provisions for unforeseen events. Cost of Food: not used on the Program. Donations: whether food (including USDA-donated commodities), labor, supplies, or any other kind. Entertainment: Costs of amusements, social activities and incidental related costs such as meals, beverages, lodgings, rentals, transportation, gratuities, Equipment Depreciation Costs: 1) Nonexpendable equipment items that have become fully depreciated. 2) Nonexpendable equipment in storage for future use or disposal. 3) The portion of nonexpendable equipment purchased with Federal or state funds or donated nonexpendable equipment. Fines and Penalties: Costs resulting from violations of, or failure to comply with Federal, State or local laws and regulations. Fund Raising: Financial campaigns, endowment drives, solicitation of gifts and bequests, and similar expenses incurred to raise capital or obtain contributions. Interest and Other Financial Costs: Interest or borrowing (however represented,) bond discounts, cost of financing or refinancing operations, and legal and professional fees paid in connection therewith. Lobbying: Costs associated with lobbying activities as defined by public law signed by the President of the United States on October 23, 1989, are prohibited. This includes using federal CACFP funds for payment of dues to lobbying organizations as well as payment of expenses to attend conferences. Rental or Lease costs: for buildings, facilities, or equipment if the rental contract includes option-topurchase. Rental fees on property owned by the institution are also not allowed. Travel: Travel expenses associated with out of state travel unless specifically approved by the Director, Office of Child & Family Services. Contact your CACFP Agreement Administrator in writing if you anticipate out of state travel.

11 5-11 FOOD SERVICE FOR CENTERS: The administrative budgets for FDCH and Center operations have already been discussed. This section of the budget page is strictly for food and food-service related expenses in Centers. Food Costs: Food costs include, in addition to the gross purchase price, the cost of distributing, transporting, storing, or handling food purchased or donated to the program. The cash value of donated foods is not considered a cost. Food costs may be documented on the basis of itemized receipts, invoices, or billings. Institutions cannot estimate a food cost. As a minimum, cash register tapes or invoices must identify food and non-food items. Food costs are not an allowable expense under FDCH administration. Food Service Labor: Food service labor consists of only the salary and benefits paid for the cook and other kitchen help. It may include a portion of teacher salaries for the time spent working in the kitchen either preparing or serving meals. Non-Food Supplies and Minor Kitchen Equipment: Items in this category include straws, napkins, and dishwashing detergent, etc., as well as minor appliances. For Childcare Centers the equipment must cost less than $1,000 and have a life expectancy of less than two years. Necessary documentation includes itemized receipts, invoices, or billings. The cost of nonfood supplies is determined by the cost of the monthly purchase minus returns and allowances. Food Service Equipment Purchases: Centers that have food service operating costs that are less than reimbursement will be acquiring a profit. In lieu of returning these excess funds to USDA, sponsors may choose to use these monies to improve their food services through purchase of major equipment, such as stoves, refrigerators, etc. Contact your CACFP Agreement Administrator in writing before purchasing any capitol equipment. Other: This expense category is reserved for any and all other food service expenses not previously covered. It includes such items as kitchen maintenance, repairing kitchen equipment, paint-

12 5-12 ing, pest control, etc. If unsure about what category to show an expense, call your CACFP Agreement Administrator.

13 5-13 MEAL REIMBURSEMENTS BASIS FOR REIMBURSEMENT Childcare Centers, Outside-School-Hours-Care-Centers, At-Risk Centers, Emergency Homeless Shelters, and Adult Day Care Centers that do not charge a separate fee for meals are reimbursed based on claiming percentages. Using the current meal reimbursement rate set by Congress, the percentage is determined by comparing the number of enrolled children/adults that qualify in each of the Free, Reduced-Price, and Paid categories to the total number of children/adults enrolled times the current rate for food under category claimed. For example, there are 30 children enrolled in the program; 15 are in the Free category, 10 are in the Reduced-Price category and 5 are in the Paid category. This means that 50% of all meals will be paid at the Free rate; 33% are paid at the Reduced-Price rate, and 17% at the Paid rate. Meals offered in FDCHs are reimbursed in accordance with the Tiering system established by the Welfare Reform Act of 1997 and the meal reimbursement rates established by Congress each year. FDCH sponsors are paid by multiplying the number of FDCHs by the appropriate annually adjusted administrative reimbursement rate. Reimbursements may not be claimed for the following categories of meals: Meals/supplements served to non-enrolled children in Childcare Centers, Family Day Care Homes and Outside-School-Hours-Centers, or for adults in Adult Day Care Facilities; Meals/supplements served at any one-time in excess of the Center s/fdch s licensed capacity; Meals/supplements served over the meal/supplement limitation of 2 meals and 1 snack or 2 snacks and 1 meal, per child or adult day care participants, per day; Meals/supplements served to adult staff, children over age 12, migrant children over age 15, or to disabled persons over the age 12 if the majority of children in care are not 18 years of age or younger; Meals/supplements served at unapproved Centers or FDCHs or during unapproved meal services; Meals/supplements served to child or adult day care participants that have not been properly documented on daily meal count records. In certain circumstances, meals served to children or adult day care participants that do not meet the meal pattern and portion size requirements of 7 CFR Part and/or meals/supplements not properly documented by daily menu/production reports.

14 5-14 PREPARING THE CLAIM FOR REIMBURSEMENT Participating institutions are required to submit their claim for reimbursement so it is received by the Office of Child & Family Services by the 15th day of the month following the claiming month. For example, a June reimbursement claim must be received by July 15 th. On every claim the HEADER is the same: Agreement Number: This is the handwritten number found on the summary page of the contract. Claim Month: The month and year for which the claim for reimbursement is submitted. EIN #: This is the institution s reporting number assigned by the IRS otherwise known as an Employer Identification Number (EIN). This must agree with the number on file in the AdvantageME payment system. Name: The full name of the institution. The reimbursement check will be made out to the institution and sent to the address according to the EIN Number. The name and number must correspond with that in the AdvantageME payment system. (W-9) Address: Use the mailing address of the institution. The reimbursement check will be made out to the institution and sent to the address according to the IRS Number. The claim report will be sent to the address on the submitted claim, unless otherwise notified. Original Claim/# of Revision: If this is the original claim for the month in question, place a checkmark in the box. Original means that it has not been processed and paid yet. Rejected original claims will still be original submissions after correction. If a claim for the month has already been submitted and processed and you wish to amend the claim, then you must state whether it is the 1 st, 2 nd, 3 rd, etc. revision. NOTE: Claims received after 60 days from the last day of the claiming month being reported will be returned to the sponsor without action.

15 5-15 On every claim the FOOTER is the same: CERTIFICATION, CCI AUTHORITY and PREPARER SIGNATURES: Please read the certification carefully. CERTIFICATION: I (WE) CERTIFY THAT this claim is true and correct in all respects; that records are available to support this claim; that it is in accordance with the terms of existing AGREEMENT (s) AND that payment, therefore, has not be received. By signing this, the Preparer (the person who actually compiles the data and reports this data on the claim form) and the Childcare Institution Authority (CCI) (as identified below) is certifying to the DHHS Office of Child & Family Services that the information is correct and that there are documents on file to substantiate the claim. The CCI Authority must be approved on the Certificate of Authorization page in your Agreement as designated to submit claims on behalf of the institution. The CCI Authority may be the Executive Director, Program Director, Financial Director, etc., at the discretion of the Board of Directors. The Preparer may be different or the same as the CCI Authority. All claims must be signed by the CCI Authority in order to be processed. Preparer signature is optional and will not hold up processing of claims. Please type or print name in order for a contact person to be established for that claiming period. Please also include phone number to reach that contact person.

16 5-16 NON-PRICING INSTITUTION S CLAIM: Childcare Centers, Outside-School-Hours-Care-Centers (including At-Risk Centers), Emergency Homeless Shelters, and Adult Day Care Centers: Institutions sponsoring Centers may participate as either non-pricing or pricing. The institutions may only sponsor facilities licensed as a Center. CENTERS: # Sponsored: The number of Centers sponsored as per the contract. This figure must agree with the number in the current Agreement and any revisions on file. # Operated: The number of Centers operated during the month being claimed. The number of centers operated may be less than the number sponsored due to vacations, etc. NUMBER OF DAYS OPERATED: The number of days during the claiming month the Center was open and meals were provided to children/adults. Claim all days of operation during the claiming month. AVERAGE DAILY ATTENDANCE: The average daily attendance is determined by adding the actual attendance each day in all centers and dividing by the number of days operated. Daily attendance is not determined by counting up to the greatest number of attendees for the meals served.

17 5-17 HOW TO CALCULATE AVERAGE DAILY ATTENDANCE (ADA) Step 1. At the end of each day, determine the total number of different children or adult participants (at Adult Day Care Centers) who attended that day. Step 2. At the end of the reporting month, add the daily attendance totals. This figure is the total monthly attendance. Step 3. To determine ADA, divide the total monthly attendance by the number of days operated. The following is an example of a sample worksheet for calculating ADA: Jan 3 25 Jan 4 30 Jan 5 35 Jan 6 28 Jan 7 27 Jan Jan Jan Jan Jan Jan 17 1 Jan Jan Jan Jan Jan Jan Jan Jan Jan Total Monthly Attendance = 623 Divided by # of days operated = 20 ADA = NOTE: Always round up to the next whole number when calculating the ADA. In the above example the ADA of should be reported as 32.

18 NUMBER OF CHILDREN/ADULTS ENROLLED: Eligible FREE: Document the number of children/adults who attend during the claiming month whose household income as documented on their Income Eligibility Form (IEF) qualified them to receive meals at the Free rate. Eligible REDUCED-PRICE: Document the number of children/adults who attend during the claiming month whose household income as documented on their IEF qualified them to receive meals at the Reduced-Price rate. Eligible PAID: Document the number of children/adults who attend during the claiming month whose household income as documented on their IEF qualified them to receive meals at the Paid rate. TOTAL: Document the total number of children/adults enrolled in the program that attended at least one day during the claiming month. The total must be the sum of the above three categories. NUMBER OF MEALS CLAIMED: Only meal types approved in the institution s CACFP Agreement may be claimed for reimbursement. This is found on your site application(s) in Rider E of your CACFP Agreement. The directions below refer to children. Please substitute the word adult only in the case of Adult Day Care Centers. Breakfasts: Document the total number of reimbursable Breakfasts received by enrolled and attending children during the claiming month. Lunches: Document the total number of reimbursable Lunches received by enrolled and attending children during the claiming month. Supplements: Document the total number of reimbursable Supplements received by enrolled and attending children during the claiming month. Breakdown the number of AM, PM, and Evening Supplements (Snacks) served (if applicable) in the allotted spaces. Suppers: Document the total number of reimbursable Suppers received by enrolled and attending children during the claiming month. NOTE: The information provided in the above sections must be accurate. While processing the claim the computer will perform certain checks and edits to assure accuracy and prevent over-claims. One of the edits is a comparison of the number of meals claimed for each meal category to the maximum product. The Number of Days Operated times the Average Daily Attendance reflects the maximum number of meals that may be claimed in any one meal category or supplement sub-category. Using the above example: #days operating X ADA= maximum meal count. 20 X 32 = 640

19 5-19 CHILDCARE OR ADULT DAY CARE CENTER CLAIMS: See previous page for directions on completing a Center claim. FDCH CLAIMS: ADMINISTRATIVE COSTS: Monthly Administrative expenses must be stated in the administration section of the FDCH system sponsored in the month in which they are incurred. Only those categories shown in the approved Agreement may be claimed. If the Agreement shows only expenses in admin labor, mileage and supplies, then expenses cannot be charged for utilities, phone, etc. unless a revision is submitted to your CACFP Agreement Administrator. See page 5-4 through 5-11 for definitions of these expenses. 1. Admin Personnel: Only personnel other than food service personnel should be reported if they were used in the CACFP process such as preparing claim reports, keeping track of meal counts, etc. This line item will include wages and fringe benefits. 2. INDIRECT: A portion of personnel expenses not primarily used for CACFP, but necessary for operation such as receptionist or director duties may be deducted in this category. 3. Training: Annual training is required by CACFP. Please ask your CACFP Agreement Administrator for expectations for your program as new policy and USDA Training requirements may vary each year.

20 5-20 PRICING INSTITUTION CLAIMS: Institutions sponsoring childcare or adult day care Centers may participate as either a nonpricing (explained previously) or pricing institution. Pricing Institutions charge separately for meals served to participants whose family size and income qualify them for either Reduced-Price or Paid meals. Organizations may not charge a per-meal fee to families of participants who qualify for Free meals based on family size and income. Institutions participating as a pricing institution may charge no more than 40 for Reduced- Price lunch or supper; no more than 30 for Reduced-Price breakfast; and no more than 15 for a Reduced-Price supplement. *(See current USDA rates) CENTERS: # Sponsored: This is the number of Centers sponsored per the Agreement. This number must agree with the number in the current Agreement and any revisions that may be on file. # Operated: This is the number of Centers operated during the month being claimed. The number of Centers operated may be less than the number sponsored due to vacations, etc. NUMBER OF DAYS OPERATED: See page 5-16 for determining Number of Days Operated. AVERAGE DAILY ATTENDANCE: See page 5-17 for example in determining the ADA. NUMBER OF CHILDREN ENROLLED: See page 5-18 for determining Number of Children Enrolled by category. NUMBER OF MEALS CLAIMED: The total number of meals or supplements (snacks) served to enrolled child or adult participants during the month being claimed.

21 5-21 FDCH CLAIMS: SECTION 1: TIER I HOMES: Homes in this category reflect those eligible by provider s family size and income, school data, and/or census information. Each IEF must be reviewed by the sponsoring institution to determine Tier I status. If ineligible, the sponsor must determine each level of reimbursement by a child s family size and income in sections 2 through 4. SECTION 2: TIER II Mixed Homes All Higher Rate: Homes in this category reflect children s eligibility for the higher Tier I rate based on household size and income. Tier II Mixed providers must have parents complete an IEF for each child enrolled in the program in order to determine eligibility for Tier I reimbursement. If all children in a Tier II Mixed Home qualify for the higher Tier I rate of reimbursement, the number of providers included in that category will be documented in this section. SECTION 3: Tier II All Lower Homes Rate: Homes in this category have elected to accept the lower Tier II rate of reimbursement without further application for all of the children in their care and the number of those Homes must be documented in this section. SECTION 4: Tier II Mixed Homes w/ Mixed Enrollment (meaning a combination of Tier I and Tier II eligible children): Homes in this category reflect providers who care for a number of children, some of whom are eligible to be claimed at the higher Tier I rate and others at the Tier II Lower rate, which is determined by the family size and income reported on parents IEFs. # Sponsored: This is the number of FDCHs in each category sponsored per the CACFP Agreement. This figure must agree with the number in the current Agreement and any revisions on file. # Operated: This is the number of FDCHs in each category that operated during the month being claimed. The number of FDCHs operated may be less than the number sponsored due to vacations, etc. NUMBER OF DAYS OPERATED: The largest number of days operated during the month the FDCHs in this category provided childcare. AVERAGE DAILY ATTENDANCE: This is the total daily attendance for the month for all FDCHs in this category divided by the number of days operated. Calculate the daily attendance for each provider and add all daily attendance figures together for all providers. Please remember to round up to the next whole number if applicable. SECTIONS 5 through 7: NUMBER OF MEALS CLAIMED FOR TIER HOMES: Only meal types identified in the approved or revised Agreement may be claimed. Section 5 numbers must be taken from Section 1; Section 6 numbers must be taken from Section 2 and Tier I children in Section 4; Section 7 numbers must be taken from Section 3 and Tier II children in Section 4. Breakfasts: The total number of breakfasts served to children claimed by FDCH providers on daily attendance form(s). Lunches: The total number of lunches served to children claimed by FDCH providers on daily attendance form(s).

22 5-22 Supplements: Total number of supplements that FDCH providers served to children who were in attendance during the month. You must then list the number of AM, PM, and Evening Supplements (snacks) offered if applicable. Suppers: The total number of suppers served to children claimed by home providers on daily attendance form(s). SECTION 8. ADMINISTRATIVE COSTS: Monthly Administrative expenses must be stated in the administration section of the childcare home system sponsored in the month in which they are incurred. Only those categories shown in the approved Agreement may be claimed. If the Agreement shows only expenses in admin labor, mileage and supplies, then expenses cannot be charged for utilities, phone, etc. unless a revision is submitted to your CACFP Agreement Administrator.

23 5-23 SECTION 9. ADMINISTRATIVE BUDGET PER AGREEMENT: This figure is the total administrative budget shown in the management plan (BSSFP-342) of the approved Agreement. Revision requests must be made in writing to your CACFP Agreement Administrator. NOTE: The claim for reimbursement will be returned to you for correction if any entries in Sections 1 through Section 5 do not match the approved Agreement.

24 5-24 PROCESSING THE CLAIM FOR REIMBURSEMENT: Upon receipt of a properly prepared and signed Claim for Reimbursement, the CACFP Planning & Research Assistant will enter the figures into the computer system for processing. The computer program converts the number of meals claimed to financial reimbursements. The computer-generated reimbursement report for meals offered in Centers (Childcare Centers, Outside-School-Hours-Care-Centers, Emergency Homeless Shelters, and Adult Day Care Centers) determines the percentage of meals to be reimbursed. This is based on the percentage of children or adults in each category. The percentage for the Free and Reduced-Price categories is determined by the number of children in each enrollment category and divided by the total number of children enrolled. The Paid category percentage is figured by the total less the Free and Reduced-Price category percentages. The reimbursement rate for FDCHs is based on the actual number of meals claimed at the Tier applicable meal rate for each meal served. The FDCH sponsoring institution must also report its administrative expenses for the month. Reimbursement is based on the number of FDCHs being sponsored multiplied by the current reimbursement rate. Year-To-Date Expenses: This is the claimed monthly expense up to the total budget amount approved by the Agreement. See page 5-3a for an example of a budget page. During the course of the Agreement year, the sponsor is encouraged to monitor the expenses on a monthly as well as year-to-date basis. The monthly expenses are reported on the claim as administrative costs, but the total for the year cannot exceed the amount budgeted for the year. Example, it is the 7 th month of a 12-month Agreement. The total anticipated expenses for the year was $10,000, but the actual expenses average $1,000 per month. Unless an amendment is requested to the current Agreement, approximately $2,000 in actual expenses won t be considered. Some sponsors underestimate the projected expenses, but there are instances where administrative expenses are over-estimated. In this case, the administrative reimbursement will be based on actual expenses. Administrative Earnings: This is the federally set reimbursement rate multiplied by the number of homes sponsored during the month. See rates established annually for current rate information. Rates are subject to change on July 1 st of each Agreement year. The CACFP Planning & Research Assistant will prepare a payment authorization form and forward it to DHHS Accounting Services for processing. Accounting Services will then send the authorization to the State Comptroller for payment. FOOD SERVICE EQUIPMENT

25 5-25 Institutions must keep an inventory of all equipment purchased with CACFP reimbursement funds showing equipment location and use. Equipment should not be disposed of until you have contacted your CACFP Agreement Administrator. Equipment of record should include such items as stoves, refrigerators, dishwashers, and microwaves. These items purchased with CACFP reimbursement funds are accountable until sold, traded, or junked.