Financial Management 102

Fall CNP ConferencePelham Civic Center

Kim McPherson, C.P.A.

October 15 & 17, 2014

Money Matters!

CAFETERIA THEFT!

Lunch Lady In Georgia Accused Of Stealing 500 Dollars Every

Single Day For 15 Years -

Could this be your school next?

3

Disconnects and Bad Blood

• CSFOs and CNP Directors – Resentment (Pass Thru and Indirect Cost)– Communication Issues– Personality Differences– Management Differences

We have to work together for the good of the district!

What can you do for ME?

What do you expect….

• From your CSFO?– A paycheck!– Software to support financial transactions• Account for your revenues• Account for your expenditures• Account for your assets – cash/inventory/receivables• Account for your liabilities – accounts payable

– Support for compliance/audit issues

What do CSFOs expect…

• From CNP (all) Directors– Take care of your program– Prepare and monitor your budget– Provide adequate documentation for transactions– Monitor your assets and liabilities– Qtrly communication of MPLH, ala carte sales,

participation rates, etc.

LEA Financial Software

• McAleer Computer Associates, Inc.– COBOL– NextGen (windows)

• CSI Technology Outfitters• Harris Computer Corporation• ?Dare we hope for one software package to

provide all CNP and CSFO needs?

Budget Development

• Revenue and Expenditures– Budget Analysis Report – Next Year Worksheet– General Ledger Detail History– Personnel (Wages and Fringes)• Budget Works – Salary Work Table Report• Pass Through Worksheet prepared from this report

– Indirect Costs vs. Direct Costs– Import capability

School Food Interface

• SFI Post Journal Entries – Daily Sales– Accrued Receivables (Reimbursement)– Cash Receipts (Reimbursement)

Purchases/Expenditures

• Purchase Orders – Issue for food from State bid?– P.O. As of Date (Open Purchase Orders)

• Summary Expenditure Report by CCTR• Salary and Benefits by G/L (P/R Transfer)• Budget Analysis Report• Indirect Cost – Monthly invoice produced after

financials are uploaded to ALSDE• Distribution of Pooled Expenditures (ADP?)

Assets

• Cash– Short and Over – Trial Balance, adjust annually• To Largest % of Sales

– Bank Reconciliation Report– Receipts Deposit Listing

• Receivables• Inventory – perpetual?

Single Inventory Concept

• USDA directive eliminated the need for separate commodity inventories

• Valuation: separate prices, same exp. Object• 461 Purchased Food– Beginning Inventory of 0143 at October 1– + Purchased & Value of Commodities Received– - Ending Inventory (purchased + commodities)– = Food Expenditures (object 461)

CNP Food InventoryNP Perpetual Inventory records

Accurate Monthly CountsTimely Posting of Production Records (usages)Reconciliation and explanation of variances

SPOT CHECK!CAMERA on back door!ROTATION OF DUTIES!

16

Liabilities

• Accounts payable register– A liability exists from the time you receive goods

or services, regardless of whether invoice has been received or paid.

– Most school districts enter invoices and cut checks immediately thereafter, leaving no accounts payable on financial statements.

– Exception usually at year end.– Interfund liability for indirect cost due to General

Close Out- Year End• Accrue Revenue – LEA Transaction Report• P.O./Encumbrances• Deferred Revenue – Print Detail Report– Money on account for Seniors

• Uncollected charges or bad checks• Pass Thru Reconciliation to Actual – Salary and

Benefits by G/L Report• Indirect Cost Final Report – ALSDE website• Clean up charges to old CCTR’s

Compliance/Audit Issues

• Allowable Costs (test of expenditures)• Eligibility (test of applications)• Equipment Mgmt (test of fixed assets)• Procurement (test of bids)• Reporting (test of reimbursement claims)• Verification of Free and Reduced Price

Applications (test of verification process)• Inventory (test of inventory calculations)

Other helpful hints

• Report Development– The Grid

• Equipment Management• Monitor– Cash/Check breakdown vs. Bank Deposit (in tact!)– Production Reports vs. Inventory Counts– Record Retention Schedule (ADAH)

Questions?