School Nutrition Program: Revenue and Costs
Instructions for School Nutrition Program sponsors for reporting revenue and cost on the Claim Cost Details report.Revenue and Costs
To access the Revenue and Cost Report, select the Costs link under Claim Items in the Child Nutrition Information and Payment System (CNIPS), which will open up the Claim Cost Details Page.
Note: The instructions contained herein apply specifically to the Year End Revenue and Cost report, 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.
This information is to be completed on the last operating month's claim for reimbursement by Charter Schools, Private Schools, and Residential Child Care Institutions only. Public School Districts and County Office of Education Sponsors are not required to complete this Annual Year End Revenue and Cost Report any longer. Yearly revenue totals for Seamless Summer Option (SSO) sites must be included in the revenue totals reported on the Revenue and Cost School Nutrition Program claim form. This data should consist of all revenue and costs associated with the School Nutrition Program from July 1 through June 30.
For specifications related to allowable operating and administrative costs, program incomes, and meals, please contact the Field Consultant for your sponsoring agency at (916) 323-4558.
Part II Revenue
Year End 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:
- Cash - Actual receipts during the year, or
- Accrual - All anticipated revenue earned during the year
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 |
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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 SSO reimbursement should be included under the appropriate meal type. The SSO supper reimbursement should be reported under “National School Lunch.”
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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 SSO reimbursement should be included under the appropriate meal type. The SSO 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 .
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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:
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 Cost Incurred
Year End Claim Only
Part III is to be completed on the last operating month's claim for reimbursement by Charter Schools, Private Schools, and Residential Child Care Institutions only. Public School Districts and County Office of Education sponsors are not required to complete this Annual Year End Revenue and Cost Report any longer. Yearly cost totals for SSO sites must be included in the cost totals reported on the Claim Cost Details page of the School Nutrition claim form.
Costs are reported annually in line items 37 through 39. When completing the cost section, adhere to the following guidelines:
- Costs must reflect charges incurred by the food service operation regardless of the source of payment.
- Costs must be reported as they are incurred, not as they are paid.
- Costs for providing contract sales and adult meals cannot be included under the cost areas unless cash is received for those sales and is reported as revenue in line item 25.
- Costs for supper cannot be reported under any of the cost areas unless served at a SSO site.
- Costs for Residential Child Care Institutions (RCCIs) must be allocated according to the costing methods described on Allocating Food Service Costs for RCCI's.
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 |
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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:
Schools must use the inventory method for computing the cost of food used. Residential Child Care Institutions must refer to Allocating Food Service Costs for RCCI's. 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 the depreciation schedule found on Depreciation of Food Service Equipment. 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:
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40 |
Total Costs: This line item will automatically calculate based on the data entered above. |