Financial Management: A Course for School Nutrition Managers

Financial Management:A Course for School Nutrition Managers

Pre - Assessment Place an identifier at the top of the page. You will use the same identifier when you

complete the Post Assessment. You do not need to place your name on the

Assessment.

Financial Management for Managers

Activity: Managers Need To Know What are things school nutrition managers

need to know regarding financial management?


Objectives Assess competencies, knowledge, and

skills of financial management Examine the advantages of cycle menus Recognize the importance of standardized

recipes and the financial benefit of USDA Foods

Recognize key information when forecasting menu item usage

Calculate the cost of menu items Identify purchasing controls Identify inventory controls


Objectives, Continued Identify ways to control labor costs Calculate Full-Time Equivalent (FTE) Calculate Meals Per Labor Hour (MPLH) Implement processes and procedures that

minimize financial risk Develop and use tools to facilitate the

communication of financial data and information

Recall the benefits of financial information as it relates to your school nutrition program


Terms and Definitions Terms and Definitions Handout


Importance of Financial Management Changing federal regulations Increasing program cost Growing demands


Nonprofit School Nutrition Program Fund Flow of school nutrition program funds Requirements for establishing a nonprofit

school nutrition program account Program revenue requirements


Office of Management and Budget (OMB) Terms and conditions Fundamental guidelines Financial integrity of SNP


School Nutrition Program Fund The OMB cost circulars outline cost

principles which ensure that taxpayer’s resources are appropriately used to carry out the Federal programs as the Federal agencies are responsible for the stewardship of these resources.


School Nutrition Fund Flow

United States Department of

Agriculture

State Agency(SA)

School Food Authority(SFA)


Budget-Manager’s Role Participate in preparation and review

process Keep budget on file Evaluate income and expenditures Amend as necessary


Financial Management Practices Indicators are analyzed regularly Prices based on established criteria Financial records are cross-checked Compare expenditures to revenues Participation is analyzed monthly


Internal Controls Written policies Authorized individuals Monitored by an independent review Trained employees


Financial Management Skills

Competencies, Knowledge, and Skill Statements for District-Level School Nutrition Professionals in the 21st Century


Activity: Self-Assessment Self-Assessment Handout Evaluate your current skills level


Activity:Financially Sound School Nutrition Program What purchasing tools and processes

contribute to a financially sound nutrition program?


Menus Driving force of school nutrition operation Definition of cycle menus


Activity: Cycle Menu Advantages Cycle Menu Activities Handout Advantages of Cycle Menus


Stock-Keeping Units (SKUs) Multiple uses for the same product Example: each flavor of juice has a different SKU Best practice - reduce SKUs


Standardized Recipes Tried, adapted, and retried several times Recipe produces the same good results

and yield every time Specific quantity for each ingredient and

portion size


Activity: Importance of Standardized Recipes Take about 10 minutes to work together at

your tables and list the advantages of using standardized recipes.


USDA Foods Meet meal pattern requirements Coincide with the principles in the Dietary

Guidelines for Americans Add variety to the school menu Provide cost savings to the SNP


USDA Foods Value Financial Benefits of Using USDA Foods:

BBQ Pulled Pork Example Handout


Food Production Records Required Demonstrates required food components Lists menu items offered and served Used to document reimbursable meals Evaluate how menu items contributed to

meeting nutrition standards Keep for three years plus the current year


Production Record—Value Used to forecast product estimates Provides historical data (forecasting) Identifies excessive labor Identifies potential waste Identifies unfavorable items


Forecasting Past Present Future


Activity: Forecasting Number of Servings Sample Forecasting Number of a Servings

Handout


Activity: Extra Servings Scenario Extra Servings Handout


Activity: Financial Control in Food Preparation Work together at your tables and make a

list of ways to enhance financial control during food preparation.


Batch Cooking Batch cooking and “just-in-time” (JIT)

cooking used interchangeably Small quantities maintain higher quality Amount prepared not to exceed servings

needed in established time (15–30 minutes)

Takes place continuously throughout the meal service


Activity: Batch Cooking Batch Cooking Handout


Portion Control Production records Standardized recipes Nutritional analysis Age-appropriate portion sizes


Activity: Portion Control Tilapia Garnished with Citrus Sauce Tilapia Garnished with Citrus Sauce

Handout


Controlling Cost and Waste Procedures to minimize waste Controlling waste – operational factors and

customer acceptability


Activity: Controlling Waste Work together at your tables and list ways

to control waste.


Food Buying Guide

http://fbg.nfsmi.org


Food Buying Guide Information Contains both specific food product

information and general operational information

Provides the yields, or the amount of servings obtained in a purchased unit of different products such as fruits, vegetables, grains, meats/meat alternates, and dairy products


Food Guide Buying Calculator A tool to help calculate quantity of food to

purchase Individual calculators for each of the 6 food

groups http://fbg.nfsmi.org/


As Purchased (AP) and Edible Portion (EP) AP refers to the weight of the product as it

exists when purchased. EP refers to the part of the product that

can be consumed. AP weight is greater than EP weight.


Calculate the Cost of Menu Item Meet the needs of the recipe Reduce waste Determine product loss Determine preparation


Activity: Purchasing Decision, Broccoli Purchasing Decision Handout


Product Screening Not required Establish procedures


Screening Paper Screening Appearance Screening Taste Screening


Paper Screening Product label Description of the product Nutritional analysis


Appearance Screening Examines appearance of product Determines if product appearance is

wanted or expected


Appearance Screening - Package Individually wrapped Integrity of the product


Taste Screening Determine criteria in advance Document customer satisfaction Screen adults and students


Activity: Financial Advantages of Product Screening What are the financial advantages of

product screening?


Inventory Control Receiving Storage USDA Foods value


Receiving Strategies Procedures


Activity: Best Practice Receiving Work as a team and identify several best

practices receiving strategies.


Storage Proper conditions


Activity: Storage Area Organization What are typical storage areas?


Activity: Dry Storage List categories you might use to group

foods in dry storage. Storage Area Handout


Inventory Control


Inventory Methods Perpetual inventory Physical inventory


USDA Foods and Commercial Inventory Value of USDA Foods Single inventory concept Inventory Handout Perpetual Inventory Control Example Form Physical Inventory Example Handout


Value of Inventory Purchase price = invoice price Replacement cost = most recent price paid

for the product Weighted average price = average price

paid for each product in inventory


Inventory Turnover Greater the turnover the more efficient the

operation Items are available Reducing risk of theft Reducing risk of waste


Food Cost Follow standard operating procedures. Maintain the correct inventory levels. Have needed product on hand. Prevent the need for more expensive

substitution. Ensure food is used in a timely manner.


Activity: Calculate Cost of Food Used and Inventory Turnover Calculate Cost of Food Used and Inventory

Turnover Handout


Par Stock Levels Predetermined inventory quantity for food

item Serves as in indicator to reorder the

product


Expenditures Food costs Labor costs Supply Costs Purchased services Transportation Indirect


Food Costs Within guidelines Ascertain sufficient funds to pay

expenditures Establish the cost for each meal Prevent waste and food theft


Ways to Reduce Food Cost Ways to Lower Food Costs in School

Nutrition Programs Handout


Meal Equivalents USDA does not prescribe one method to

calculate meal equivalents. School meals must be converted to a

standard. Nonprogram food sales are converted to

lunch standard. Calculate meal equivalents based on full

cost of reimbursable lunch.


Equates Meals to a Standard A student reimbursable lunch is the

standard unit of measurement most often used.

Counting meal and food sales other than lunch is not clear-cut.

Meal equivalents are used for determining per meal cost, productivity ratios, and Meals Per labor Hours (MPLH).


Meal Cost Meal Equivalents Calculations Convert different types of meals and

nonprogram revenues to numbers of meals equivalents served.

Breakfast, lunch, snacks, and nonprogram food sales such as a la carte must be converted.

Check with state agency for guidance.


Activity: Meal Equivalents Breakfast Meal Equivalents Handout,

Afterschool Snacks Meal Equivalents Handout

Nonprogram School Nutrition Sales Handout


Per Meal Costs Meal cost as a benchmark Essential to good financial analysis of SNP Determine on a regular basis Per Meal Cost Calculation Handout


Labor Costs What are ways to control labor costs in

school nutrition programs?


Staffing Determination of appropriate number of

workers needed for work to be accomplished

Established guidelines essential Impacts financial management


Scheduling What are implications of poor scheduling?


Activity: Production Task Schedule Production task Schedule Example

Handout


Full-Time Equivalent (FTE) 1.0 = one full-time employee Holiday, sick leave, vacation, or other time

off not considered FTE


Activity: FTE Calculations

Number of employees x hours worked per day

Total hours per week x number of days

Hours per week ÷ 40 hours per week


Meals Per Labor Hours Meals Per labor Hours (MPLH) productivity

index Actual hours assigned


Activity: Meals Per Labor Hours Meals Per Labor Hours Handout


Fraud Prevention Accounting Internal Organization External Organization


Internal Controls Compliance Cash handling Deposits Funds for allowable cost Appropriate accounting methods Monitoring, authorizing, and recording


Activity: Cash Handling Practices What are some procedures to prevent

fraud or theft? Cash Handling Procedures-Good Practices

Handout


Activity: Customer and Employee Theft Work in small teams and discuss ways to

prevent customer and employee theft. Theft Prevention Measures Handout


Communicating Financial Information Checklist


Activity: Communicating with the School Nutrition Director What operational concerns directly related

to the financial impact of your program should be communicated to your director?


Thank You! Post - Assessment Evaluations


National Food Service Management Institute

www.nfsmi.org

800-321-3054


http://www.nfsmi.org/

Documents

Financial Management: A Course for School Nutrition Managers