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PRE-CON
VCA BASICS
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ARE YOU IN THE RIGHT
PLACE?
This session is NOT the place to evaluate your VCA – it is intended to
address the following:
• What is VCA?
• Why is VCA important?
• When will an organization’s VCA be evaluated?
• Things to keep in mind
• Practical exploration of materials presented
• Common errors/issues
Note: ISDs are not required to demonstrate VCA at time of application.
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YOU promise to follow HOUSE
RULES for this session:
• Turn off the ringer on your phone.
• Sit next to someone that you DO
NOT KNOW so you can fully
benefit from the session activities.
• Sit in the front of the room, if
possible.
• Leave the room if you need to text
or take a call; come back when
you are ready.
• Be back on time from breaks –
doors will close promptly at the
designated time and the session
will continue.
• PARTICIPATE IN ALL ACTVITIES!
WE promise that:
We will give you our undivided attention
during this session.
We will share our experience and knowledge,
and some Best Practices, to enable you to
navigate VCA at any stage of the program.
We will start the session on time.
We will end the session on time.
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ABOUT THIS SESSION
• This is a 4 hour session.
• You will need something to write with to fully participate in this session’s activities.
• This session is covering A LOT of information in a fairly small amount of time. Use the notecards provided to write down any question(s) that may come up – we’ll answer what we can during class.
• If there are any questions that we do not have the time to address during this session and/or that do not apply to the group, we will post the answers on SquareMeals after the conference.
Resource materials:
• USDA CACFP Handbooks
• TDA CACFP Handbooks
• 7 CFR Part 226
Disclaimer: The examples and ideas included in this session are meant as viable options to teach and provide additional guidance to each organization. There are other approaches not addressed in this presentation that can be utilized to demonstrate VCA. Please refer to applicable Federal & State regulations for additional guidance.
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V
C
A
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WHAT IS VCA?
VCA
Viability
Capability
Accountability
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WHY IS IT IMPORTANT IN
THE CHILD AND ADULT
CARE FOOD PROGRAM
(CACFP)?
The federal CACFP regulations require all participating
institutions to demonstrate financial viability, maintain adequate
administrative capability, and have internal controls for
accountability.
• These requirements were put into place to ensure that tax payer
money is being used effectively for the intended purpose.
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CONSIDER THESE QUESTIONS:
• How many years have you/has the organization been in business
(operated)?
• More years = indicator of viability
• Do you/does the organization have a steady history of
community involvement and/or services?
• History of community involvement and/or services can be an
indicator of capability
• How is business?
• Net income/increase in net assets (each year and/or cumulative)
= indicator of viability & capability
• Trends in cash flows (increases in cash and total net asset
position) = indicator of viability & capability
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WHEN WILL AN ORGANIZATION’S
VCA BE EVALUATED?
The Texas Department of Agriculture (TDA) will assess each
organization's viability, capability, and accountability during the
initial application process and continue to monitor viability,
capability, and accountability by requesting updates and
conducting administrative reviews.
• FYI:
Based on compliance data, a Renewing CACFP CE may be
required to complete a VCA evaluation at the time of application
renewal. If this is the case, the CE will be notified via email.
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SUBMITTING VCA
DOCUMENTATION FOR REVIEW
• Provide current, accurate,
and complete information.
• Provide policies and
procedures that answer
WHO, WHAT, WHEN,
WHERE, WHY, HOW and
HOW MUCH.
• Provide policies and
procedures that are easy
to understand and follow.
• Provide someone else’s
forms.
• Provide outdated
information.
• Provide inaccurate
information.
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WHAT DOCUMENTATION IS REQUIRED
TO BE SUBMITTED TO TDA ?
Documentation requirements will
vary depending on:
• The type of CE you/your organization
represents (Independent Center, Sponsor of
Centers, Sponsor of Day Care Homes, or a
Dual Sponsor), and
• Any history and/or issues that may be
identified during review.
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STANDARD DOCUMENTATION REQUIRED
FOR A NEW INDEPENDENT FOR VCA @
APPLICATION
• Financial documentation
• Audited financial statement; or balance sheet and income statement.
• Organizational Chart
• Organization’s Legal Documentation – Articles of Incorporation, Assumed Name Certificate, Certificate of Formation (all that apply)
NOTE: The above noted required documentation may not be all-inclusive of the documentation that is required for your particular application as requirements may vary based on the type of organization and/or available review history.
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STANDARD DOCUMENTATION
REQUIRED FOR A NEW SPONSOR FOR
VCA @ APPLICATION
• Performance Bond (Form ID: CACFP-005)
• Requests to waive the performance bond must be submitted in writing via [email protected]
• Comprehensive Financial Statements
• Balance Sheet, Income Statement, and Statement of Cash Flow (For Profit) OR
• Comprehensive Financial Statements – Statement of Activities, Statement of Financial Position, and Statement of Cash Flow (Non-Profit)
• Policies and procedures that assign CACFP and Civil Rights Responsibility
• Outside Employment Policy
• Organizational Chart
• Site Monitor Review procedures AND/OR Provider Monitor Review procedures
• Site Recruitment Plan AND/OR Provider Recruitment Plan
• Organization’s Legal Documentation
• Articles of Incorporation, Assumed Name Certificate, Certificate of Formation (all that apply)
NOTE: The above noted required documentation may not be all-inclusive of the documentation that is required for your particular application as requirements may vary based on the type of organization and/or available review history.
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COMMON ERRORS FOR VCA @
APPLICATION
Incomplete P&Ps, and/or P&Ps do not
have the correct organization name.
Budget information submitted does not match
financial documentation submitted.
Staffing information does not match across the
application materials submitted.
VCA information submitted for
application cannot be verified
during an on-site review.
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BEST PRACTICES SUBMITTING
FOR VCA EVALUATION
• ALWAYS remember – this is BUSINESS.
• BE HONEST!
• Don’t wait until the last minute to prepare your VCA
information for review.
• This includes training staff
• More information is always better than not enough.
• Documentation, documentation, documentation…
• Spell-check
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WHAT QUESTIONS MUST THE VCA
ANSWER?
1. Who
2. What
3. When
4. Where
5. Why
6. How
7. How often/How much
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LET’S BREAK IT DOWN
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WHAT IS VIABILITY?
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ASK YOURSELF:
Does your organization have an operation that will be here
tomorrow and the next (even without being part of the
Program)?
HINT: The argument that you
cannot pay staff until you
are reimbursed by TDA is
contrary to the characteristics
noted above for VCA…
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Financial Management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. Efficient Management of money for CACFP:
Performing or functioning in the best possible manner with the least waste of time and effort; having and using requisite knowledge, skill, and industry; utilizing a particular commodity or product with the least waste of resources or effort (usually used in combination) – all ensuring efficient use of program money/funds.
Effective Management of money for CACFP:
Ensuring and maintaining accountability with program rules and regulations because operating in conflict with the program rules and regulations causes money/funds to be lost, and possibly becoming a debt/liability.
Objectives of organization for CACFP:
Provide a nonprofit food service program to qualified children and/or adults in compliance with program rules and regulations while ensuring the continued financial health of the organization.
NOTE:
Financial Management includes budgeting, accounting, costing standards, management of property, procurement standards, and fiscal audits. Records of these activities must be supported by source documents to accurately and completely disclose the sources and application of funds.
VIABILITY IN BUSINESS –
FINANCIAL MGT.
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Activity #1:
In writing:
Explain your organization’s viability status for a reader that DOES NOT
have any familiarity with your organization.
FYI:
Be prepared to share and discuss!
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Remember: Who, What, When, Where, Why, How, and How Much/How Often?
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BREAK TIME
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WHAT IS CAPABILITY?
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ASK YOURSELF
Do you/your organization not only WANT to be in the
Program but do you/does your organization have the
(cap)ABILITY to operate all aspects of the Program?
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ADMINISTRATIVE
CAPABILITY IN
BUSINESS
Remember, your organization is a BUSINESS first. So which
aspect(s) of a business is/are demonstrative of
Administrative Capability?
• One aspect would be Staffing
• Total number of staff
• Qualifications of staff
• Staffing plan
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DOES THE
ORGANIZATION HAVE
Staff that has/have experience areas applicable to running
the Program?
This could be demonstrated by experience with the
following:
• General Business,
• General Management,
• Accounting & Finance,
• Food Management,
• Grant Monitoring & Compliance, and/or
• Food & Nutrition Programs.
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Activity #2: Discussion
Discussion topic -
Explain to your partner(s) how your organization ensures and demonstrates
capability.
Remember: Who, What, When, Where, Why, How, and How Much/How Often?
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SO, ARE YOU CAPABLE?
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WHAT IS ACCOUNTABILITY?
FYI:
For CACFP there are 2 “main” areas of Accountability:
Fiscal and Program.
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ACCOUNTABILITY
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POLICY VS. PROCEDURE –
WHAT IS THE DIFFERENCE?
• Policy = a high-level overall plan embracing the general goals
and acceptable procedures
• Example: It is the policy of ______________ that the organization will file claims on the 1st of the month (or the following business day if the 1st is a non-workday) for the pre-ceeding month.
• Procedure = a series of actions that are done in a certain way or order : an established or accepted way of doing something
• Example: Usually _________________ files claims on the 1st of the month for claims accrued in the pre-ceeding month.
• Think “Follow-Through”: If the P&Ps are not adhered to in the operations of the organization it’s an indicator that there may be an issue with accountability.
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ASK YOURSELF:
Are you willing and able to take ownership of the Program operations?
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Activity #3:
In writing, explain how your organization ensures and demonstrates fiscal and program
accountability for a reader that DOES NOT have any familiarity with your organization.
Remember to answer the following: Who, What, When, Where, Why, How, and How
Much/How Often? Be prepared to share and discuss!
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Share your assignment with your neighbor; discuss and give honest
feedback: Did the assignment answer: Who, What, When, Where, Why,
How, and How Much/How Often?
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BREAK TIME
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KEEP IN MIND
• Not all CEs are the same = not all situations are the same.
• We have not exhausted all indicators of VCA within this
presentation; we’ve focused on general concepts that will
allow you to make an informed decision.
• VCA must be maintained for the entire duration of your
organization’s participation in the CACFP.
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COMMON ERRORS FOR VCA
MAINTENANCE – COMPLIANCE
Most compliance findings occur because a CE not following their own written policies & procedures, and/or because there is a lack of internal controls in place at the organization.
• Internal controls are the steps in place to make sure the organization is operating effectively and are significant indicators of capability and accountability
A large number of compliance issues are caused by a CE failing to maintain the appropriate documentation.
• ALL documentation related to the CACFP MUST be maintained, and be provided to TDA upon request, by the CE for a minimum of three (3) years.
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VCA Crossword
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RECAP
VCA
VCA - applications
VCA - Renewals
VCA - Reviews
VCA -Maintenance
Accountability
Capability
Viability
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Use the Action Plan handout to prepare for application for
participation in the CACFP.
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PLEASE
COMPLETE THE
SURVEY BEFORE
YOU LEAVE THIS
CLASS
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