CASH MANAGEMENT

Bob Deegan, Deputy Director, Special Nutrition Programs

USDA Food and Nutrition Service, Northeast Regional Office

Why talking about Cash Management? $418,876 stolen from Concord NH 1999-

2006 by District’s bookkeeper $335,000 from East Lyme CT by FSMC’s

FSD 2004-2010 Lots of smaller thefts, but all have lack of

basic management controls in common Keeps your food service operation from

making as much money and from increased financial independence with the District

Who’s food service operation has had a theft?

Should be part of your Business Plan

Cash management is one piece of a well run and profitable business operation along with: Inventory management Production records Portion control/plate

waste Effective procurement Marketing Etc.

Cash Management at the POS

If you don’t have a computerized operation – lobby your District to get one

Minimize time & confusion at the POS by: Use 25 cent increments in pricing to the greatest

extent Encourage families to pay online or add money

other time than at lunch (can Main Office collect money?)Use pre-numbered receipts Endorse checks right away

Train cashiers, especially on what constitutes a reimbursable meal, and spot check them Look for “stuff” by the POS (bobby pins, gum, etc.)

Cash Management at the POS cont’d

Count-out cash drawers at the end of shifts Protects cashiers from future suspicion Set a tolerance limit for shortages/overages

One drawer per person Document any cash transfers between

drawers Keep good records Balance 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 made

Limit/control access to cash As few staff as possible should handle cash Use two-person control to segregate duties

between person receiving cash and person maintaining the accounting records

Need increased oversight if staffing levels prevent two-person control

Now what do I do with the $ cont’d

Get a secure storage container or use the school’s safe

Don’t keep cash in unlocked desk drawers, file cabinets, etc.

Make regular deposits Always reconcile deposits promptly Keep good records Use bonded couriers for bank deposits if

not making them yourself

Communications - The most important part of Cash

Management Talk to people and learn from their

advice/mistakes School business officers

Good people to reconcile monthly bank statements with

Fellow food service managers, directors SNA members good starting point

Others in retail businesses with high cash flow Universities and colleges tend to have very

comprehensive Cash Management procedures

Cash Management

It’s not just $ that’s walking out the door

Cash Management

Use good inventory management and conduct periodic inventories of highly pilferable foods and equipment

Mark equipment Use 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?