CASH MANAGEMENT

Bob Deegan, Deputy Director, Special Nutrition ProgramsUSDA Food and Nutrition Service, Northeast Regional Office

Why talking about Cash Management?$418,876 stolen from Concord NH 1999-2006 by Districts bookkeeper$335,000 from East Lyme CT by FSMCs FSD 2004-2010Lots of smaller thefts, but all have lack of basic management controls in commonKeeps your food service operation from making as much money and from increased financial independence with the District

Whos food service operation has had a theft?

Should be part of your Business PlanCash management is one piece of a well run and profitable business operation along with:Inventory managementProduction recordsPortion control/plate wasteEffective procurementMarketingEtc.

Cash Management at the POSIf you dont have a computerized operation lobby your District to get oneMinimize time & confusion at the POS by:Use 25 cent increments in pricing to the greatest extentEncourage families to pay online or add money other time than at lunch (can Main Office collect money?)Use pre-numbered receipts Endorse checks right awayTrain cashiers, especially on what constitutes a reimbursable meal, and spot check themLook for stuff by the POS (bobby pins, gum, etc.)

Cash Management at the POS contdCount-out cash drawers at the end of shiftsProtects cashiers from future suspicionSet a tolerance limit for shortages/overagesOne drawer per personDocument any cash transfers between drawersKeep good recordsBalance system totals by reconciling daily cash register readings to daily deposits

Now what do I do with the $Establish written procedures for how cash will be reconciled and deposits madeLimit/control access to cashAs few staff as possible should handle cashUse two-person control to segregate duties between person receiving cash and person maintaining the accounting recordsNeed increased oversight if staffing levels prevent two-person control

Now what do I do with the $ contdGet a secure storage container or use the schools safeDont keep cash in unlocked desk drawers, file cabinets, etc. Make regular depositsAlways reconcile deposits promptlyKeep good recordsUse bonded couriers for bank deposits if not making them yourself

Communications - The most important part of Cash ManagementTalk to people and learn from their advice/mistakesSchool business officersGood people to reconcile monthly bank statements withFellow food service managers, directorsSNA members good starting pointOthers in retail businesses with high cash flowUniversities and colleges tend to have very comprehensive Cash Management procedures

Cash ManagementIts not just $ thats walking out the door

Cash ManagementUse good inventory management and conduct periodic inventories of highly pilferable foods and equipmentMark equipmentUse production records to detect changes Consider installing cameras at key locations Make sure they are aimed to show faces Only use clear plastic trash bags

My Plate

Questions?

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