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Financial Management

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Financial Management Alabama CNP Directors October 2014 Financial Management SECTION I: UNDERSTANDING THE SDE ACCOUNTING SYSTEM MOST COMMON ACCOUNTING CODES FOR CNP ... – PowerPoint PPT presentation

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Title: Financial Management


1
Financial Management
  • Alabama CNP Directors
  • October 2014

2
Financial Management
SECTION I UNDERSTANDING THE SDE ACCOUNTING
SYSTEM MOST COMMON ACCOUNTING CODES FOR CNP (Not
all inclusive, most commonly used) DEFINITIONS OF
ASSET CODES DEFINITIONS OF LIABILITY
CODES DEFINITIONS OF FUND EQUITY
CODES DEFINITIONS OF REVENUE CODES DEFINITIONS OF
FUNCTION OF EXPENDITURE ACCOUNT CODES DEFINITIONS
OF OBJECT OF EXPENDITURE CODES DEFINITIONS OF
FUND SOURCE CODES DEFINITIONS OF PROGRAM
CODES DEFINITIONS OF SPECIAL USE CODES
3
Financial Management
  • Goal of a Financial Management System
  • is to provide reliable information to the user in
    order that decisions might be made confidently.
  •  

4
Financial Management
  • Uniformity
  • all data is recorded the same way each time so
    that the results may be compared from one
    accounting period to the next, one budget year
    to the next, or among schools or even districts.

5
Financial Management
  • Accurate comparison
  • the ability to compare like items or like
    facilities (apples to apples) will provide
    credible information.

6
Financial Management
  • Valid and reliable benchmarking
  • school districts can make a comparison of their
    data to that of recognized best practices
    facilities/districts

7
Steps to Effective Financial Management
  • What is the SDE Accounting System?
  • How transactions are recorded.
  • How the accounting reports and printout present
    the financial results and position of the CNP.
  • How to interpret the accounting reports.
  • The types of revenue and expenditures of the CNP.
  • How to measure the CNPs productivity and
    efficiency.
  • How to Budget and Stick to it.

8
The SDE Accounting System
  • A 27-digit accounting code is used to identify
    each transaction and to provide uniformity of
    accounting and reporting information.

9
 Accounting System Components Definitions
  •  
  • 1 2 3 4 5
    6 7 8 9
  • _ _ / _ / _ _ _ _ / _ _ _ / _ _ _ _ / _ _ _ _ / _
    / _ _ _ _ / _ _ _ _
  • General Ledger and Special Reporting
    Codes
  • Fund Type Account Group (2 digits)-
  • fund types and two account groups.
  • USDA programs recorded as Fund Type 12 (Special
    Revenue Fund) for specific revenue sources that
    are legally restricted to expenditures for
    specific purposes. CNP funds fall in this
    category since separate budget and financial
    reporting requirement by state and federal gov.

10
Accounting System Components Definitions
  • 1 2 3 4 5
    6 7 8 9
  • 1 2 / 4/ _ _ _ _ / _ _ _ / _ _ _ _ / _ _ _ _ / _
    / _ _ _ _ / _ _ _ _
  • General Ledger and Special Reporting
    Codes
  • Account Type ( 1 digit)
  • designates five (5) major account types (
    Assets-1 Liability-2
  • Fund Equity-3 Revenues-4 Expenditures-5)
  • Account Code ( Function indicated by four (4)
    digits)
  • used to designate balance sheet (assets,
    liabilities, and fund equity), revenue and
    expenditure accounts. For example, Cash
    (0110-0119), Investments (0120-0129), Receivables
    (0130-1239), Inventories (0140-0149),
  • Other Assets (0150-0159).liability ( 0200-0299)
    fund equity (0300-0399),
  • Revenue( 4 used for identification) Expenditures
    ( 5 used for identification)

11
Accounting System Components Definitions
  • 1 2 3 4 5
    6 7 8 9
  • _ _ / _ / _ _ _ _ / _ _ _ / _ _ _ _ / _ _ _ _ / _
    / _ _ _ _ / _ _ _ _
  • 4. Object (3 digits)
  • used to classify in detail the services or
    commodities bought or paid for. For example,
    Food Service Director 117, Manager 115, Food
    service Assistants 109, Garbage Removal 348,
    Telephone 361.
  • 5. Cost Center (4 digits)
  • Code for cost center is determined by each
    School System. Each school and Child Nutrition
    Central office has a different number .
  • Central office may be 0010, HS 0031, elementary
    0040, elementary 0020, middle school, 0056

12
Accounting System Components Definitions
  • 1 2 3 4 5
    6 7 8 9
  • _ _ / _ / _ _ _ _ / _ _ _ / _ _ _ _ / _ _ _ _ / _
    / _ _ _ _ / _ _ _ _
  • 6. Fund Source (4 digits) identifies the
    sources of the money. Funds received from
    USDA-Food and Nutrition are coded 5100-5199,
    School Lunch Section 11 (5110), School Lunch
    Section 4 (5120), School Breakfast (5130),
    Commodities (5160). However, use 5101 as default
    except for 5170 for Summer Feeding sponsors.
  • 7. Appropriation year (1 digit)
  • used to route activities to specific fund year
    current yr. 0 LEA carryover 1
  • 8. Program (4 digits)
  • code for a plan of activities and procedures
    designed to accomplish a pre-determined set of
    objectives. CNP uses 8420 only.
  • 9. Special Use (4 digits)
  • used to further breakdown for any other codes
    (8000-8999)

13
Equipment Budget
Equipment Purchase Request Equipment Purchase Request Equipment Purchase Request Equipment Purchase Request Equipment Purchase Request
System Name    
System Number     SDE Use Only SDE Use Only
Date Approval Approval
School Name School Name Equipment Item Equipment Item Quantity Cost / Item Total Cost To Complete Approved By Date
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      
            0.00      

Sheet Total Sheet Total 0.00
SIGNATURES REQUIRED SIGNATURES REQUIRED Summary from previous sheets Summary from previous sheets Summary from previous sheets  
0.00

CNP DIRECTOR    
Submission Date Submission Date    

CSFO    


SUPERINTENDENT    








REVISED 7-2014


14
Equipment Approvals
  • 5,000 or greater must have written approval
  • Funds must available
  • Superintendent approval
  • Anticipated completion date

15
Emergency Purchases
  • Prevents the production or service of the meal
  • Cannot be a custom designed/built item
  • Declared an emergency by the board
  • Must document all prices/all contacts

16
Bidding Equipment
  • Must make a comparison of relevant features to
    eliminate inadequate items
  • Verify size requirements
  • Verify utility requirements
  • Delivery/set up requirements
  • Demonstration of equipment
  • Warranty contract
  • Repair contract

17
Capital Improvement
  • May not purchase land or buildings
  • May not pay for construction that increases the
    square footage
  • Renovations or improvements that improve the
    facility but do not increase the size are
    potentially allowable
  • Cannot use CNP funds if not properly procured

18
Capital Improvements
  • Fund balance must not drop below 2.0 months by AL
  • All schools must have basic large equipment
  • USDA gives the State the responsibility for
    determining if the capital project expenditure is
    an allowable cost
  • Unapproved capital expenditures are unallowable
    costs

19
Uniforms
  • Only allowable if the LEA has an established
    board-approved policy to provide uniforms to all
    support personnel, not just CNP
  • Non-taxable fringe benefit if the uniforms are
    required to be worn as a condition of employment,
    are clearly identified as a uniform and not
    suitable for everyday wear
  • If a cash allowance is given and is considered as
    compensation, then the amount is taxable and to
    be included on the W-2

20
Adult Meals
  • Excess costs associated with sales or services to
    adults not covered by the sale price of the meal
    or item are not allowable expenses
  • Payments and reimbursement received for all
    childrens meals may not be used to offset the
    cost of adult meals

21
Adult Meals
  • Meals served to non-program adults must be priced
    to cover all costs of the meal
  • Adults should receive portions comparable to the
    high school student
  • The cost of extra servings or oversized servings
    must be added to the price of the meal
  • Beverage with meal is milk- other beverage
    selected to be charged at ala carte established
    price

22
CNP Staff Meals
  • Meals may be served without charge to full time
    staff directly involved in the production and/or
    service of the meal to children
  • Does not include principals, coaches, band
    directors, board members, or superintendents

23
Program Incentives
  • Allowable only if promoting specific program
    purposes of outreach and nutrition education
  • Unallowable
  • Staff morale boosters
  • Personal items for staff
  • Items not related to outreach or nutrition
    education

24
Worthless (NSF) Checks
  • Worthless checks are an unallowable cost to the
    CNP-cannot be written off
  • Each school district must have a worthless check
    policy
  • A fee can be charged for all returned checks to
    cover expenses
  • Non-public funds must be used to cover any NSF
    check
  • Can use a collection agency to recover NSF check
    (rebate)

25
Indirect cost
  • Calculated each year by the CSFO
  • Each school district is different
  • May not be charge or direct bill CNP for items
    calculated in indirect cost rate

26
Pass Thru Calculations
  • Required to be completed and submitted to CNP
    Audit Manager on or before 09/30 each year
  • Worksheet located in the audit section of child
    nutrition
  • State funding for non certificated staff as
    authorized by the State Legislature for increases
    in annual salaries and fringe benefits since 1993

27
Property Inventory
  • School districts will prepare CNP physical
    property inventory
  • Yearly accountability of items purchased with CNP
    funds required
  • Information needed for each cost center and
    central office
  • Serial numbers, model numbers and cost of initial
    purchase price
  • Disposal of property- track all items to include
    how and when disposal was made transfer
    information is required to account for use of
    federal funds for allowable purchases
  • Disposal may be by auction, request for proposal
    or scrapped
  • Income earned from disposal is CNP revenue and
    required to be deposited to CNP

28
Best Practices
  • Complete monthly food/non-food inventory by cost
    center
  • Monitor absenteeism
  • Monitor on job injuries
  • Evaluate cost center equipment needs
  • Run monthly trial balance by cost center to
    determine financial status
  • Check revenue and expenditures

29
Best Practices
  • Complete yearly lunch and breakfast school
    audits prior to January 1
  • After school snack evaluations 2
  • First within the first 4 weeks of start
  • Second at another time in the year
  • Must request permission prior to start

30
Best Practices
  • Complete food costs
  • Complete non food costs
  • Complete meals per labor hour per school
  • Compete all purchases either by written or
    price quotes

31
Best Practices
  • What are your best practices?

32
Financial Management
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