Financial Management - RCCI

• Annually, after July 1, the United States Department of Agriculture (USDA) and the School Nutrition Team (SNT) release categorical meal, milk, and snack reimbursement rates. RCCIs can use these rates to budget the amount of federal and state revenue earned per meal .
• Yearly Reimbursement Rates can be found on the DPI Financial Management Webpage under the Reimbursement section.

• Program regulations at 7 CFR 210.14 and 220.13(i) require an RCCI to establish a NPFSA, in which all reimbursements and other revenues from food service operations are retained and used only for the operation or improvement of the USDA Child Nutrition Programs (CNP).
• The financial management for many RCCIs is often overseen by a county or state agency. The RCCI does not need a separate bank account for the NPFSA. However, the NPFSA must have a separate accounting ledger showing the following:
  • Beginning Fund Balance + Revenues – Expenses = Ending Fund Balance.

• In lieu of making a large fund transfer to a negative NPFSA, a simplified accounting method can be used.
• This simplified method of recording in the NPFSA ledger is optional depending on the recording requirements of revenue and expenses of your organization. This simplified ledger shows expenses equal to the revenue reported. Other expenses are paid for by a different fund.
• Please see Simplified Accounting Method Instructions  for details.

• An indirect cost that cannot be specifically identified as a food service cost, must be converted to a direct cost and include documentation to show how the cost directly relates to the USDA CNP.
• For example, garbage fees for a building could not be charged to the NPFSA with the assumption that the food service department generates the most garbage. A weight study would need to be completed to show what portion of the garbage belongs to the food service department.
• Direct cost studies need to be repeated each year.

Overview

• All RCCIs participating in USDA School Meals Programs are required to submit a food service Annual Financial Report (AFR) by August 31, each year.
• For more information, please visit the DPI Financial Management Webpage and scroll down to the AFR section.

Simplified Annual Financial Report (AFR)

• This simplified method of completing the AFR is optional depending on the recording requirements of revenue and expenses of your organization.
• The simplified AFR reports expenses equal to the revenue reported. Other expenses are paid for by a different fund.
• Please see Simplified AFR Instructions  for details.

Overview

• Procurement is the process of acquiring goods and services and is a requirement of the USDA CNPs.

Procurement Methods

• There are regulated procurement methods RCCIs must choose from when purchasing goods and services. The method chosen will depend on the estimated dollar value of the procurement.
• Refer to the Procurement Methods Comparison Chart to determine the best procurement method.

Meal Service Agreements

• If a RCCI is utilizing a 3rd party to manage a food service program and/or provide meals, the RCCI must complete an agreement with the provider.
• The type of agreement will depend on the meal provider.
• For more information please visit the Meal Service Agreements Webpage.

Equipment Purchases

• Equipment purchased with funds from the nonprofit school food service account with a cost that exceeds the RCCI's capitalization threshold (or $5,000, whichever is less), will need a prior approval process.
• Review the Equipment Preapproval List. If the equipment purchase is listed, no further action is needed. If the equipment purchase is not on this list, the PI-6206 form must be completed.
• Complete a Equipment Preapproval Request Form (PI-6206) (Instructions)

Buy American Provision

When purchasing commercial food products served in the school meals programs, RCCIs must comply with the Buy American provision (7 CFR Part 210.21(d)). RCCIs must track non-domestic product(s) purchased which do not comply with the Buy American Provision.

For more information, please visit the DPI Buy American Provision Webpage.