Calculating/Reporting Food Service Match:

Q: How do we calculate our required food service match and how do we report it?

A: To determine the District’s state match amount, calculate 30% of the total number of lunches served in the prior fiscal year. Then multiply that amount by the paid lunch reimbursement rate. The amount is reported on the food service page of the AFR and should agree to the District’s accounting records. Your auditor will be looking for the following:
1. Was the match made?
2. Was the match the correct amount?
3. Was the match made from the proper fund?
4. Did the amount reported on the food service page of the AFR agree to the District’s accounting records?

Free meals to cafeteria employees:

Q: Can a school district provide free meals to cafeteria employees?

A: Charging food service employees for meals is left to the discretion of the District. According to the Arizona Department of Education Child Nutrition Guidance Manual, meals to food service workers may be provided at no charge, and can be considered a fringe benefit attributable to the food service program.

Food service management company for determining eligibility for free and reduced-price meals:

Q: Can the duties of a food service management company employee include determining eligibility for free and reduced-price meals?

A: According to the ADE Food & Nutrition Dept., the determination of free and reduced-price meal eligibility CANNOT be delegated to a food service management company employee. This must be done by a school district employee.

If ADE notifies that the Food Service fund accumulated 3 months cash:

Q: What can be done if ADE notifies a school district that the Food Service Fund accumulated more than 3 months' cash resources at year end?

A: ADE reviews districts' year end AFR's to determine compliance with the USDA cash management requirements. If a district exceeds the allowable 3 months' cash resources threshold, ADE will request a corrective action plan from the district. Suggestions to reduce the cash balance to an acceptable limit are: Purchase of computerized nutritional analysis - Purchase of nutrition education training analysis - Hire a nutrition consultant to assist in planning an education project - Consideration of reducing prices - Purchase of new food service equipment - Charge of an indirect cost rate to the Food Service Fund and transfer of the applicable funds to the Indirect Cost Fund.  

Deposit made to an outside food service management company:

Q: How do I handle a deposit we made to an outside food service management company or a deposit to a food service cooperative purchasing agency?

A: According to the USFR chart of accounts, a deposit (i.e. security, prerequisite to receiving goods or services, etc.) should not be recorded as an expenditure, but as a deposit in object code 0135.