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SNP Allocating Food Service Costs for RCCI's

Allocating food service costs for residential child care institutions.

Note: The instructions contained herein apply specifically to the Year End Revenue and Cost form, submitted with the last claim month of the school year. These instructions do not necessarily correspond to the treatment of revenues and expenditures for the non-profit school food service account.

School Nutrition Program (SNP) Residential Child Care Institutions (RCCIs) must apply the Meal Equivalents costing method when allocating costs associated with operating their nutrition programs. These costs are reported annually on the last claim month of the school year. The Meal Equivalents method uses meal equivalencies and actual participation data. The following text outlines the costing method and how it should be applied when completing Part III (Cost Incurred) of the CNIPS Claim cost Details page on the last claim month of the school year.

Part III Costs Incurred

Items 37 - 39

Meal Equivalents

The Meal Equivalents require the assumptions that (1) the cost of two breakfasts equals the cost of one lunch; (2) the cost of one supper equals the cost of one lunch; and (3) the cost of four supplements equals the cost of one lunch. The share of total food service program costs attributed to each reimbursable program (National School Lunch, School Breakfast, or Supplements) is based on a comparison of the number of meals served for the specific reimbursable program to the total number of meals served for all the programs. This comparison establishes cost allocation percentages by reimbursable meal type that are applied to total costs for the food service program. This calculation produces the cost associated with the reimbursable meal programs.

Determine the total number of adult and child breakfasts, lunches, meal supplements, and suppers served during the reporting period, i.e. July 2014 – June 2015. Using assumptions described in (1), (2), and (3) above, calculate the “Lunch Equivalents” as follows: (i.e., 2 breakfasts = 1 lunch; 1 supper = 1 lunch; 4 supplements = 1 lunch)

Calculation of "Lunch Equivalents"

Meal Type Actual Number Served Conversion Factor Lunch Equivalent
Child Breakfasts
2,000
1/2
1,000
Child Lunches
2,000
1
2,000
Child Supplements
2,000
1/4
500
Adult Breakfasts
200
1/2
100
Adult Lunches
200
1
200
Suppers
1,000
1
1,000
Total Lunch Equivalent  
4,800


Using "Lunch Equivalent" counts, compute the cost allocation percentages for National School Lunch, School Breakfast, and Meal Supplements. This computation is accomplished by dividing the lunch equivalent meal counts by program type by the "Total Equivalent" as follows. Note that adult meals and suppers are not reimbursable.

Calculation of Cost Allocation Percentages

Meal Type Actual Number Served Lunch Equivalent Reimbursable Meals Calculation Cost Allocation
Child Breakfasts
2,000
1,000
1,000
1,000 ÷ 4,800
0.21 or 21%
Child Lunches
2,000
2,000
2,000
2,000 ÷ 4,800
0.42 or 42%
Child Supplements
2,000
500
500
500 ÷ 4,800
0.10 or 10%
Adult Breakfasts
200
100
100
n/a
n/a
Adult Lunches
200
200
200
n/a
n/a
Suppers
1,000
1,000
1,000
n/a
n/a
Total Lunch Equivalent
n/a
4,800
4,800
n/a
n/a

 

Determine the total cost of purchased food, labor (direct and support), supplies and purchased services (direct and support), and equipment depreciation for food service. For instructions on calculating equipment depreciation, go to Depreciation of Nonexpendable Food Service Equipment [http://www.cde.ca.gov/fg/aa/nt/snpequipdepr.asp]. By using the percentages calculated with the process described above, allocate food service costs among the National School Lunch Program, School Breakfast Program, and Meal Supplements as applicable.

Calculation of Total Costs

Cost Items Total Cost Cost Allocation*
Breakfast 21%
Cost Allocation*
Lunch 42%
Cost Allocation*
Supplement 10%
Reported Costs by Line Item
Total Purchased Food
$3,500
$ 735
$1,470
$ 350
$ 2,555 (Item 37)
Total Labor
$1,200
$ 252
$ 504
$ 120
$ 876 (Item 38)
Total Supplies and Purchased Services
$800
$ 168
$ 336
$ 80
$ 584 (Item 39)
Total Equipment Depreciation

$800

$ 168
$ 336
$ 80
$ 584 (Item 39)
Total Cost for Food Services
$6,300
$1,323
$2,646
$ 630
$ 4,599 (Item 40)

*Cost Allocation by Reimbursable Program Type

Questions: Jackie Quenga | jquenga@cde.ca.gov | 916-322-8313 
Last Reviewed: Tuesday, January 12, 2016

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