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CACFP ANNUAL BUDGETOctober 23, 2019
Budget Overview A financial plan for operatinga business or business unit. Itincludes plannedexpenditures and anticipatedresources for the upcomingfiscal year. It is an educated guess!This Photo by Unknown Author is licensed under CC BY
Purpose of a CACFP BudgetThis Photo by Unknown Author is licensed under CC BY Financial Plan State Agency Approval Tool for Decision Making Serves as a Means ofMonitoring Performance
PerspectivesInstitutions Financial RoadmapState Agency Financial ViabilityThis Photo by Unknown Author is licensed under CC BY
How is a Budget Helpful?Createsan actionplanAllocatesresourcesOutlinesincomeUsed as ocessGuidesspending
Budget Alignment with veCapabilityProgramAccountability Showing a positive relationship betweenrevenue and expenses Possessing skill sets that demonstrate thatyou’re capable of running your business Demonstrating the ability to record, trackand report key information
Sources of Funding Program Funds CACFP Reimbursement DCH SponsorAdministrative Funds DCH Sponsor CarryoverNon Program Funds Donations or Fundraisers Grants Unrestricted Funds
Budget Factors: CostsNecessaryReasonableAllowableThis Photo by Unknown Author is licensed under CC BY-NC-ND
Steps for Creating a CACFP BudgetObtain historicalrevenue and expenseinformation from theprior yearEnter the historicalinformation in the“prior year” columnon the budgetdocument in CNPwebCombine the datafrom steps 1, 2 & 3 tocreate your newCACFP budgetDetermineanticipated changesto the new budgetConduct a finalreview of the budget
Historical Data Enrollment #of operating days Sitestaffing Equipment #levelsneedsof meals served
SupportingDocumentation Documentation to Show Funding Sources Bank statement from fiscal year end Mathematical calculation of anticipatedreimbursement Contribution letters or grant award documents Historical data on prior fundraisersDocumentation to Show Expenses Prior year payroll data Quotes for anticipated purchases Receipts and invoices from prior year forcontinued expensesThis Photo by Unknown Author is licensed under CC BY-NC
State Agency ApprovalPrior Approval All expenses areapproved whenthe State Agencyapproves yourbudget.Specific PriorWrittenApproval Certain expensesrequire that yourequest writtenapproval beforeincluding themin your budgetNERO Approval Some itemsrequire approvalfrom theRegional officein Boston beforethey can beincluded in yourbudget
Prior Approval (PA) and Specific PriorWritten Approval (SPWA)
SPWA Letter Upload on ChecklistPage in CNPweb
AdequateAccounting SystemCritical for managingCACFP budgetsContains your actualcosts for the prior yearHelps you compare yourbudget to actualsThis Photo by Unknown Author is licensed under CC BY
Best PracticesThis Photo by Unknown Author is licensed under CC BY Conduct an internal reviewprior to submitting thebudget to the State Agency. Monitor the budget to makesure that expenses arecharged to the correctbudget categories. Proactively revise thebudget. Keep an ongoing “budget toactuals” analysis. Your actual costs at the endof the Program year canserve as a starting point forthe budget for theupcoming year.
Recap Budgets should be consideredto be “living documents” thatshould be revised as needed. Your budget should show theState Agency how you’regoing to fund the vision thatyou presented in yourmanagement plan. Budgets should be supportedwith documentation andshould comply with CACFPregulations.This Photo by Unknown Author is licensed under CC BY-SA-NC
Completing a Budget in CNPweb Once your Agreement is approved, the Sponsor Summarypage looks like this:
Step 1
Step 2
Step 3
Step 4
Step 5Anticipated Costs – Anticipated CACFP Reimbursement Amount of Non-CACFP Funding196,317.07 - 85,000 111,317.07
Step 61,200 110,117.07111,317.07Anticipated Costs – Anticipated CACFP Reimbursement Amount of Non-CACFP Funding196,317.07 - 85,000 111,317.07
Final CheckWhen your budget is complete and correct, there will be no surplus or deficit.You have shown the CACFP State Agency that you have sufficient funding toAdminister the CACFP.
QuestionsThis Photo by Unknown Author is licensed under CC BY-NCND
State Agency Approval Prior Approval All expenses are approved when the State Agency approves your budget. Specific Prior Written Approval Certain expenses require that you request written approval before including them in your budget NERO Approval Some items require approval from the Regional office in Boston before they can be
