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School Nutrition Programs: Revenue and Costs

Instructions for School Nutrition Program sponsors for reporting revenue and cost on June claim only.

Cost & Revenue

(June Claim)

Note: To access the Cost & Revenue portion of the May or June claim select the Costs link under Claim Items.

This information is to be completed on the June claim for reimbursement. Yearly revenue totals for Seamless Summer Feeding Option (SSFO) sites must be included in the revenue totals reported on the June School Nutrition claim form. This data should consist of all revenue and costs associated with the School Nutrition Program from July 1 through June 30. All monetary figures entered on the claim form must be rounded to the nearest dollar.  

Part II Revenue

June Claim Only

Revenue is reported annually in line items 1 through 36 according to the program in which the revenue was earned. Revenue may be reported by using one of the following two accounting methods:

If enrollment is 2,500 children or more, revenue must be reported on an accrual basis. Other exceptions to reporting accrued revenue are noted.

Item Description

Items (1, 7, 13, 19, 25)

Daily Sales (Actual Receipts): For all sponsors, this item should be reported on a cash basis. In each of the appropriate items report actual cash received from children during the year for meals served under the National School Lunch, Basic Breakfast, Severe Need Breakfast, and Meal Supplements programs.

On line Item 25 report actual cash received during the year from all other daily sales, such as a la carte sales, snack bar sales (including milk), and adult sales.        

Note: If the cost of meals or a la carte food is included in a tuition fee and no separate charge is made to the children, then these items would be left blank.

Items (2, 8, 14, 20, 26)

 

Federal Reimbursement: On the appropriate lines report the sponsor’s federal reimbursement for the National School Lunch, Basic Breakfast, Severe Need Breakfast, or Meal Supplements programs. Include cash-in-lieu of commodities, if any. The SSFO reimbursement should be included under the appropriate meal type. The SSFO supper reimbursement should be reported under “National School Lunch.”

  • Cash Sponsors. Enter the federal reimbursement received during the year. Warrants for the federal reimbursement are identified as Federal Trust Fund. The remittance advice, which accompanies the warrant, will identify the portions of the total reimbursement to be reported under each program.
  • Accrual Sponsors. Enter the federal reimbursement earned during the year. The Child Nutrition Fiscal Services (CNFS) Monthly Reimbursement Calculation Worksheet (CNFS 71-­7, Appendix A-2) may be used to compute the amount reported in each line item.

Items (3, 9, 15, 21, 27)

 

State Reimbursement: Enter the basic state reimbursement for the National School Lunch, Basic Breakfast, or Severe Need Breakfast programs. The SSFO reimbursement should be included under the appropriate meal type. The SSFO supper reimbursement should be reported under “National School Lunch”.  In addition, include state reimbursement for eligible meals served in schools that are participating in the State Meal Program under the mandate of Education Code Section 49550 (Outside Source).

  • Cash Sponsors:  Report the state reimbursement received during the year on the appropriate line item. Warrants for the state reimbursement will be identified as General Fund. State meal reimbursement is paid on a monthly basis. Cash sponsors need to allocate, on a participation percentage basis, the amount of the warrant among the National School Lunch, Basic Breakfast, and Severe Need Breakfast programs if the sponsor participates in more than just the National School Lunch Program. Do not forget to include the SSFO reimbursement under the appropriate meal type.
  • Accrual Sponsors. Enter state reimbursement earned during the year. The Monthly Reimbursement Worksheet (CNFS 71-7, Appendix A-2) may be used to compute the amounts reported on each line item. Do not forget to include the SSFO reimbursement under the appropriate meal type.

Items (4, 10, 16, 22, 28)

 

Needy Meal Tax/Revenue Add On: This item will reflect funds transferred into the cafeteria  account or fund from general funds that were previously known as the Meals for Needy Pupils Permissive Override Tax (Schedule G of the Revenue Limit Data Sheets and Schedules for Kindergarten through Grade Twelve School Districts). This transfer of funds should be performed on the basis of a documented bidding procedure. The amount will be reported on line items 4, 10, 16, 22, and 28, on the basis of the programs that the sponsor’s district chooses to subsidize.

Items (5, 11, 17, 23, 29)

 

Other: Report all the other revenue for the year from sources not identified in the above columns. Examples of other revenue are as follows:

  • Cash donations
  • Interest
  • Rebates (money received from the vendor after costs have been reported)
  • Percentage from vendors who operate their own machines

Revenue from these sources should be allocated to the various programs by percent of participation in each program or percent of daily sales in each program.

Revenue from banquets, contract sales, sale of food or supplies to organizations, and so forth, should be reported on line item 29 (Miscellaneous Food Services).

Items (6, 12, 18, 24, 30, 31-36) Totals: These line items will automatically calculate based on the data entered above.

Part III Costs Incurred

(June Claim)

Part III is to be completed on the June claim for reimbursement. Yearly cost totals for SSFO sites must be included in the cost totals reported on the June School Nutrition claim form.

Costs are reported annually in line items 37 through 39. When completing the cost section, adhere to the following guidelines:

Agencies that provide support to the food service programs through the General Fund may allocate their support costs and include them in their reported costs.

Item Description

37

Food: Enter the total cost of purchased food during the year for which the sponsor is reporting. The sponsor must have invoices showing dates and actual costs. Allowable food costs include these listed below:

  • All edible items of purchased food for meals and milk. Do not include costs for supper unless it was served at a SSFO site. Include the cost of contract food items or adult meals only if revenue for those items was reported on line item 25.
  • The costs for processing (e.g., canning, freezing, baking by commercial company), distributing, transporting, storing, or handling any purchased food, and the transportation and handling costs for United States Department of Agriculture (USDA)-donated commodities received during the year. Do not include the fair market value of donated food.
  • The contract prices for reimbursable meals and milk for those sponsors that contract for the receipt of breakfasts, lunches, supplements, and milk (and suppers served at SSFO sites).

Schools must use the inventory method for computing the cost of food used. Residential Child Care Institutions must refer to Appendix A-8, “Allocating Food Service Costs for RCCIs”.

Sponsors that receive meals from another agency or private company must report the contract price as food cost.

38

Labor: Enter costs for all wages and employee benefits for labor dedicated to the   food service program (direct) and labor allocated to the food service program (support). Labor costs are those costs generated as a result of a service provided by someone employed by the sponsor. Include costs incurred (both paid and unpaid) during the year for which the sponsor is reporting. Include payroll deductions for social security, withholding tax, employee insurance, retirement, and employee benefits. Do not include the value of donated labor.          

39

Other: Enter the cost of supplies during the year. Cost is derived by using the inventory method (beginning inventory plus purchases less ending inventory). Supplies are those nonfood items that cost less than $500 or have a useful life of less than one year. Enter the cost of purchased services during the year (both paid and unpaid). A purchased service is a cost generated as a result of a service provided by a person or agency outside of the sponsor's agency. In addition, include other costs dedicated to food services and costs allocated to food services (such as rental of equipment, repairs, training, travel expenses, audits, laundry, mileage, utilities, fire insurance, and so forth) regardless of  the source of payment within the agency.

Equipment costs reported as a part of operating costs must be determined by a depreciation schedule. See page 33, Depreciation of Nonexpendable Food Service Equipment, Printable School Nutrition Programs Reimbursement Instruction Booklet.

Include the cost of office space in public buildings (which includes such items as maintenance, custodial services, and utilities) or the cost of rent by contractual agreements other than rental-purchase agreements or leases with an option to purchase.

Enter any other applicable costs that were not included as food or labor.

            Do not report as a cost the following items:

  • Any money transferred into an equipment replacement fund
  • Actual cash expenditures for equipment (cost must be calculated by using depreciation method described on page 33)
  • The portion of costs allocated to supper (except for Residential Child Care Institutions or suppers served at a SSFO site)
40

Total Costs: This line item will automatically calculate based on the data entered above.

Questions: Jackie Quenga | jquenga@cde.ca.gov | 916-322-8313 
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