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Projected 2011 Budget for Ga

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        Budget Guidance
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                FY 2011



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  AUGUST 2010
                   Budget Guidance
                       Manual
         Child and Adult Care Food Program
                Bright from the Start
    Georgia Department of Early Care and Learning




In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from
discriminating on the basis of race, color, national origin, sex, age, or disability.

To file a complaint of discrimination, write USDA, Director, Office of Adjudication, 1400 Independence Avenue, SW,
Washington, D.C. 20250-9410 or call toll free (866) 632-9992 (Voice). Individuals who are hearing impaired or have
speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339; or (800) 845-6136
(Spanish).

                               USDA is an equal opportunity provider and employer.


2 |FY 2011(October 2010-September 2011) rev.3/2011
TABLE OF CONTENT
BUDGET SUBMISSION REQUIREMENTS .............................................................................................................................. 4
BUDGET DEVELOPMENT-CREATING A BUDGET .............................................................................................................. 6
              Creating a Budget ............................................................................................................................................................ 7
              Program Income or Other Income ................................................................................................................................... 7
              Expenditure ..................................................................................................................................................................... 7
              Administrative or Operating Cost.................................................................................................................................... 7
              Direct or Indirect Cost ..................................................................................................................................................... 7
              Allocation Methodology .................................................................................................................................................. 8
              Cost Accumulation .......................................................................................................................................................... 9
              Options/Contingencies .................................................................................................................................................... 10
              Budget Approval ............................................................................................................................................................. 10
              Prior Approval ................................................................................................................................................................. 10
              Procurement..................................................................................................................................................................... 10
              Specific Prior Written Approval ...................................................................................................................................... 11
              Monitoring/Revising Budget ........................................................................................................................................... 11
COMPLETING THE BUDGET PACKAGE ................................................................................................................................ 12
              Projected Annual CACFP Meals Reimbursement ........................................................................................................... 12
              Operating Budget ............................................................................................................................................................ 13
              Administrative Budget..................................................................................................................................................... 14
WORKSHEETS ........................................................................................................................................................................... 14
              Worksheet 1Salaries ........................................................................................................................................................ 14
              Worksheet 2 Benefits ...................................................................................................................................................... 16
              Worksheet 4 Equipment-Direct Expenses ....................................................................................................................... 16
              Worksheet 5 Equipment-Depreciation ............................................................................................................................ 16
              Worksheet 6 Equipment-Use Allowance ......................................................................................................................... 16
              Worksheet 7 Durable Supplies ........................................................................................................................................ 17
              Worksheet 8 Expendable Supplies .................................................................................................................................. 17
              Worksheet 9 Educational Supplies .................................................................................................................................. 17
              Worksheet 10 Printing ..................................................................................................................................................... 17
              Worksheet 11 Postage ..................................................................................................................................................... 18
              Worksheet 13 Space Costs .............................................................................................................................................. 18
              Worksheet 14 Utilities, Maintenance/Janitorial Services ................................................................................................ 18
              Worksheet 15 Insurance Premiums ................................................................................................................................. 19
              Worksheet 16 Contracted Services .................................................................................................................................. 19
              Worksheet 17 Rental/Lease ............................................................................................................................................. 20
              Worksheet 18 Communication Costs .............................................................................................................................. 20
              Worksheet 19 Advertising and Public Relations Cost ..................................................................................................... 21
              Worksheet 20 Membership, Subscriptions, and Professional Institution Activities ........................................................ 21
              Worksheet 21 Day Care Home (DCH) Licensing Expenses ........................................................................................... 21
              Worksheet 22 Other and Special Cost Items ................................................................................................................... 21
              Worksheet 24 Program Operations Travel Expenses ...................................................................................................... 21
              Worksheet 25 In-State CACFP Workshops and Related Staff training ........................................................................... 22
              Worksheet 26 Out-of-State travel for CACFP Related Conferences ............................................................................... 22
              Worksheet 28 Participant Training & Support Cost ........................................................................................................ 22
              Worksheet 29-Staff Training ........................................................................................................................................... 22
              Worksheet 31 Indirect Costs............................................................................................................................................ 23
ITEMS REQUIRING PRIOR APPROVAL, SPECIFIC PRIOR WRITTEN APPROVAL, AND FNSRO APPROVAL
.......................................................................................................................................................................... APPENDIX A
DAY CARE HOME PROJECTED ADMINISTRATIVE REIMBURSEMENT WORKSHEET ................... APPENDIXB
FY 2009 WAGE GUIDELINES ....................................................................................................................... APPENDIX C
SMALL PURCHASE ITEM DOCUMENTATION ........................................................................................ APPENDIX D
SPECIFIC PRIOR WRITTEN APPROVAL REQUEST FORM..................................................................... APPENDIX E
EXAMPLES ..................................................................................................................................................... APPENDIX F
CONTACT INFORMATION........................................................................................................................... APPENDIX G
3 |FY 2011(October 2010-September 2011) rev.3/2011
Introduction

The Food and Nutrition Service (FNS) Instruction 796-2 Rev. 3 is one of the elements that must be used by Bright
from the Start: Department of Early Care and Learning (Bright from the Start) to establish the financial
management system required by Child and Adult Food Program Regulations. The use of FNS Instruction 796-2
Rev. 3 is incorporated as part of Bright from the Start’s financial management system and must be followed
unless Bright from the Start has provided more restrictive or specific guidance via this manual, policies or policy
memorandums. Financial management includes, but may not be limited to, budgeting, costing standards, internal
control, management of revenues and expenses, management of property, procurement standards, and fiscal
audits.

This guidance further clarifies the standards that Bright from the Start expect institutions to meet in order to
comply with the budget submission, approval process, allocation of costs, and charge of program expenditures.
This guidance is not all encompassing, but is intended to address those specific situations that sponsors typically
find confusing or difficult.

If you are unsure of the steps to take for specific situations not addressed in this budget guidance or the FNS
Instruction 796-2 Rev. 3, contact Bright from the Start for technical assistance.




4 |FY 2011(October 2010-September 2011) rev.3/2011
BUDGET SUBMISSION REQUIREMENTS
New Institutions
In accordance with 7 CFR §226.6(b) (1) (xviii), new institutions must submit information sufficient to document
that it is financially viable, administratively capable of operating the CACFP, and has internal controls in effect to
ensure accountability.

Federal regulations 7 CFR §226.6(b) (1) (xviii) (A) (2), requires new institutions be financially viable and must
demonstrate that it has adequate financial resources to operate the CACFP on a daily basis, has adequate sources
of funds to withstand temporary interruptions in CACFP payments and/or fiscal claims against the institution, and
can document financial viability) for example, through audits, financial statements, etc.).

In addition, costs in a new institution’s budget must be necessary, reasonable, and allowable, and appropriately
documented (§226.6(b) (1) (xviii) (A) 3)).

Renewing Institutions
In accordance with 7 CFR §226.6(b) (2) (vii), renewing institutions must submit information sufficient to
document that it is financially viable, administratively capable of operating the CACFP, and has internal controls
in effect to ensure accountability.

Federal regulations 7 CFR §226.6(b) (1) (vii) (A) (2), requires renewing institutions be financially viable and
must demonstrate that it has adequate financial resources to operate the CACFP on a daily basis, has adequate
sources of funds to withstand temporary interruptions in CACFP payments and/or fiscal claims against the
institution, and can document financial viability) for example, through audits, financial statements, etc.).

In addition, costs in renewing institution’s budget must be necessary, reasonable, and allowable, and appropriately
documented (§226.6(b) (1) (vii) (A) 3.

Independent Institutions
     Independent centers are required to submit their budget during the application period, typically between
       August 1st and October 15th of each year if they are using CACFP meal reimbursement toward
       administrative costs or any operating items that requires prior approval.

Sponsors of Affiliated or Unaffiliated Centers
    Sponsoring organizations must submit an administrative budget to Bright from the Start annually.
    Sponsors are required to submit an administrative budget with sufficiently detailed information
       concerning projected CACFP administrative earnings and expenses, as well as other non-Program funds
       to be used in Program administration. Bright from the Start will determine the allowability, necessity, and
       reasonableness of all proposed expenditures, and assess the sponsoring institution’s capability to manage
       CACFP funds.
    The administrative budget submitted by a sponsor of affiliated or unaffiliated centers must demonstrate
       that the administrative costs to be charged to CACFP do not exceed 15 % of the meal reimbursements
       estimated or actually earned during the budget year. A sponsoring organization of centers must include in
       the administrative budget all administrative costs, whether incurred by the sponsoring organization or its
       sponsored centers. If at any point a sponsoring organization determines that the meal reimbursements
       estimated to be earned during the budget year will be lower than that estimated in its administrative
       budget, the sponsoring organization must amend its administrative budget to stay within the 15 %
       limitation.
    The budget is received during the renewal application period, typically between August 1st and October
       15th of each year. Sponsoring institutions that are not required to renew a full application (based on the 3
       year renewal cycle) will submit their budget during the same period.


5 |FY 2011(October 2010-September 2011) rev.3/2011
Day Care Homes Sponsors
    Sponsoring organizations must submit an administrative budget to Bright from the Start annually.
    Sponsors of day care homes are required to submit an administrative budget with sufficiently detailed
       information concerning projected CACFP administrative earnings and expenses, as well as other non-
       Program funds to be used in CACFP administration. Bright from the Start will determine the
       allowability, necessity, and reasonableness of all proposed expenditures, and assess the institution’s
       capability to manage CACFP funds.
    Day Care Home Sponsor's reimbursement for administrative costs is computed based on the number of
       approved Day Care Homes participating during the month times the applicable reimbursement rate.
    The budget is received during the application period, typically between August 1st and October 15th of
       each year. Sponsoring institutions that are required to renew a full application (based on the 3 year
       renewal cycle) will submit their budget during the same period.




6 |FY 2011(October 2010-September 2011) rev.3/2011
Budget Development
Creating a Budget

   1. Determine the estimated amount of income from each source, including the estimate meal
      reimbursements and the maximum potential administrative earnings the institution will receive
      from the Child and Adult Care Food Program.

       Meal Reimbursements
       Bright from the Start uses the claiming percentages method when computing reimbursement for monthly
       claims. This method requires the institution to know the total meals served by types (breakfast, lunch,
       snack, supper) and the total enrollment or average daily attendance.

       Use the amount of CACFP meals reimbursement received last year to estimate the amount that will be
       received in the new fiscal year unless there has been a significant .increase (more than 20%) in the
       estimated number of meals served.

       Administrative Earnings
      Ceiling on Administrative Reimbursements for Sponsors of Centers (§§ 226.6(f)(3),
       226.7(g),226.16(b)(1))
      226.12 Administrative payments to sponsoring organizations for Day Care Homes.

          Institutions are allowed to use up to a maximum of 15% of the total annual meal reimbursement
           towards administrative costs.

          7 CFR § 226.16(b)(1) requires that the administrative budget submitted by a sponsoring organization
           of centers, and the actual administrative costs of such a sponsoring organization, not exceed 15% of
           the meal reimbursements estimated to be earned by its sponsored centers during the budget year,
           unless the State agency grants a waiver.

          Independent centers and Sponsors of affiliated or unaffiliated centers can complete the projected
           reimbursement worksheet in the electronic budget to determine the estimated meal reimbursement
           and estimated maximum amount allowed for administrative costs.

          Sponsoring institutions have a fiduciary responsibility to their sponsored facilities to be prudent and
           responsible as their funding comes from the sponsored facilities. Therefore, sponsors are not allowed
           to incur costs solely to maximize reimbursement.

          Day Care Home Sponsor's reimbursement for administrative costs is computed based on the number
           of approved Day Care Homes participating during the month times the applicable reimbursement rate.

          Administrative costs cannot exceed 30% of the total administrative and meal service payments earned
           by the institution. Day care home sponsors must complete the projected reimbursement worksheet in
           the electronic budget to determine the estimated maximum amount allowed for administrative costs.

       Other Revenue
           Reimbursements that were earned in prior years that were not expenses. This balance most likely
              will be reflected as the ending balance in the food service account after the fiscal year has been
              properly closed.
           Funds deposited in the food service account due to reviews finding(s) or Agreed Upon Procedures
              finding(s).
           Other program income (see the definition and examples below for program income).
7 |FY 2011(October 2010-September 2011) rev.3/2011
              Other income (see the definition and examples below for other income).

   2. Determine if the income to the program is program income or other income.

   Program Income is the gross income earned from activities supported by Child and Adult Food Care Program.
   All income to CACFP must be retained and used only in the institution’s program food service. Examples of
   program income include:
           1) Participant payments for meals in institutions which operate pricing program
           2) Payments received from food sales to adults when the total operating cost is not reduce by the
               cost of adult meals
           3) Revenue from non-program operations when a separation of program and non-program food
               service is not appropriate
           4) Proceeds from the disposition of real and nonexpendable personal property acquired with Food &
               Nutrition Services funds.
           5) Royalties and other income earned from the sales or licensing of copyrighted work developed
               under CACFP

       Other income includes other funds that result from program operations or are applied to program
       operations. Examples of other income include:
           1) Cash donations earmarked for use in the CACFP food service
           2) Interest earned on advance administrative or meal services funds
           3) Funds committed by the intuition to CACFP
           4) Funds received for CACFP food activities from other nongovernmental resources
           5) Funds received from the sales of unused or unneeded supplies purchases with CACFP funds.

   3. Make a list of all the expenditure items your institution needs to operate the CACFP. These costs
      are those that are paid with both CACFP funds and other funding resources. It is helpful to look
      at items of income and expenditure as Fixed, Variable and Mixed:

          Fixed expense items are likely to remain the same throughout the year i.e.-rent.
          Variable expense items are likely to change depending on levels of activity.
          Mixed - call charges on phones will vary, but the rental remains the same.

      If an institution is preparing an amended budget, the projected expenditures for the amended budget will
       be the year-to-date expenditures plus any projected increase in allowable cost for the remaining months of
       the fiscal year.

   4. Define the cost as administrative costs or operating costs.

   The administrative costs represent any allowable expenses incurred by an institution in planning, organizing
   and managing CACFP and allowed by Bright from the Start financial management instruction.

   The operating costs represent any allowable expenses incurred by an institution in serving meals to
   participants under CACFP and allowed by Bright from the Start’s financial management instructions.

   An estimate of expenses can be used when actual costs cannot be obtained. However, estimated costs cannot
   be included on the institution’s final monthly claim for reimbursement.

   Institutions cannot claim reimbursement for CACFP costs that are funded by another source or charge
   CACFP for costs incurred under other programs.

   5. Define the cost as direct or indirect cost.



8 |FY 2011(October 2010-September 2011) rev.3/2011
   Direct costs are costs that can be identified directly to a program and/or funding source and must be charged
   directly to the program. Direct costs which are insignificant in dollar amount may be treated as an indirect
   cost if the institution is consistent in this application to all cost objectives. Examples of allowable direct costs
   used in CACFP include:

           1. Operating and administrative nonprofit food service employee salaries
           2. Depreciation or use allowances on equipment used in the nonprofit food service program
           3. Food purchased for use in the nonprofit food service program

   Indirect costs are costs that have been incurred for common or joint objective and cannot be practically
   identified to the food service program, CACFP, or other institution’s program. There are three categories of
   indirect costs (a) depreciation and use allowance (b) operating and maintenance, and (c) general and
   administration costs.
            1. The allocated expenses of the institutions’ buildings, capital improvement to land/building and
                equipments used for common purposes are examples of indirect costs for depreciation and use
                allowance.
            2. Operating and maintenance indirect costs are the expenses that have been incurred for the
                administrative, operation, maintenance, preservation, and protection of the institution physical
                plant.
            3. General and administrative indirect costs are the expenses that have been incurred for the overall
                general executive and the administrative of the institution.

   6.   Determine the allocation methodology.

   Allocating, also known as prorating, is the system or procedure used to determine the amount or percentage of
   funding charged to a particular program or sponsorship.

   An allocation methodology describes how the item is prorated and directly charged. Simply indicating a
   percentage of allocation is not sufficient when an allocation methodology is requested. The institution must
   provide the basis for the methodology, (i.e. number of hours, number of miles, etc.), that is used as the
   common denominator that divides the cost between a program, project, or sponsorship.

   The cost must be ALLOWABLE as defined by the terms of your particular award.

   The cost must be ALLOCABLE, that is, the program which paid the expense must benefit from it.

   The expense must be REASONABLE, that is, the cost reflects what a "prudent person" might pay.

   If costs are not allowable, allocable and reasonable, then they may NOT be charged to a sponsored project.

   In addition costs must be handled consistently within the institution.

   Direct costs allocation
   When the allowable direct costs cannot be exclusively classified as operating or administrative costs, or the
   direct cost benefits several programs the shared cost must be allocated.

   Indirect costs allocation
   Indirect costs must be allocated on a consistent and rational basis through the development of a cost allocation
   plan, which is approved by the cognizant Federal or State Agency. The use of OMB Circulars A-87 and A-
   122 must be used when developing a cost allocation plan.

   Cost allocation procedures distribute accumulated costs to the programs that benefit from the accumulated
   costs on the basis of percentages that represent a reasonable and equitable allocation base.


9 |FY 2011(October 2010-September 2011) rev.3/2011
    Allocations should never be equally split based on the number of programs administered by an institution, but
    must be prorated based on the amount of use a particular program receives from a service/product, etc. For
    example, a sponsoring institution that operates both a day care home and center sponsorship cannot split the
    use of a copier 50%-50%, just because they operate two programs, unless the percentage is based on an
    acceptable allocation methodology.

    The following are some typical program cost accounting accumulation categories and the typical equitable
    bases of distribution:




COST ACCUMULATION                             TYPICAL EQUITABLE DISTRIBUTION BASE


Operating Expenses and Equipment              The most equitable basis practical (e.g., floor space,
                                              machine hours, or other usage rate measurement). If a
                                              piece of equipment is to benefit more than one program,
                                              an estimate of the use on each program could be used to
                                              determine an allocation percentage. Salaries and
                                              Wages-hours chargeable to each program.
                                              The most equitable basis practical (e.g., salaries and
Administration Costs                          wages, personnel years, total budgeted expenditures or
                                              other reasonable and systematic basis).
                                              The most equitable basis practical (e.g., floor space,
                                              machine hours, or other usage rate measurement).
                                              Salaries and wages – hours chargeable to each program.
                                              If a piece of equipment is to benefit more than one
                                              program, an estimate of the use on each program could
                                              be used to determine an allocation percentage.
                                              Supplies may be purchased in bulk and then used on
                                              various program. It may be possible to internally
                                              requisition supplies and charge actual cost to a program.

Indirect Cost                                 Special care and judgment should be exercised in
                                              selecting an equitable basis for distributing indirect
                                              costs. Different bases are used, where appropriate, to
                                              allocate different types of expenditures. For example,
                                              telephone expenditures might be allocated based on
                                              salaries and wages costs or hours, but utilities and rent
                                              might be allocated based upon square feet of space.




Allocation Methodology
Listed below are some additional allocation methodologies that are typical to charging cost.

        Copy and fax
        Per page charge (In order to allocate copiers or faxes, a log must be maintained so that only those
        amounts used by CACFP can be properly charged.)

10 |FY 2011(October 2010-September 2011) rev.3/2011
        Mileage
        CACFP miles / Total miles

        Rent
        Square footage of area to be charged / total square footage of building
        Actual number of hours of CACFP use / Total number of hours of space is used

        Refer to the FNS instructions concerning space costs when the organization either owns the building or a
        related party owns the building.

        Salaried Employee and fringe benefits
        CACFP hours / Total hours worked for organization

        Utilities
        Square footage of the CACFP space / Total square footage of building
        Actual number of hours of CACFP use / Total number of hour’s space is used
        Utilities analysis performed by utility company

   7. Consider the options and contingencies.
       What if you have a short fall of income? Can activities be scaled down? Would you cancel or
         postpone certain expenses? What will happen if some income is late? Should you plan for other
         unexpected circumstances?
       If the estimated allowable costs appear to be more than the estimated administrative reimbursement
         that could be received, the institution must have other funds to supplement the costs.
       If the estimated allowable costs appear to be less than the estimated administrative reimbursement
         that could be received, the institution must limit the proposed budget to those actual necessary costs.

   8.   The budget should be presented to the Bright from the Start for comments and approval.

        Prior Approval
        Prior Approval items are those expenses that must be specifically identified by item and amount during
        the budget process. When the item and amount are properly disclosed during the budget process, the
        approval of the budget meets USDA regulatory requirements unless Bright from the Start specifically
        disallows the cost in writing.

        Procurement
        Goods and services obtained through purchase, rental or barter received using CACFP funds must be acquired
        according to the procurement procedures as detailed in the Procurement Manual. Use the Step-by-Step guide
        to determine what procurement rules the institution must follow and the type of procurement method that
        should be used. Refer the Procurement Manual for additional guidance.
         The three commonly used procurement methods are:

           Small Purchase:
            1) Informal
            2) Price or rate quotations from an adequate number of qualified suppliers
            3) The Small Purchase Documentation Worksheet should be used to document the process. The
               document may be requested for any cost item in the budget. Refer to page 9 of the Procurement
               Manual for more information.
            4) For small items, written price or rate quotes must be confirmed in writing, identifying the
               pertinent details of the transaction. The product chosen should demonstrate the most economical
               product for the type of product being sought. Limiting a product to a certain brand is considered
               overly restrictive.

           Competitive Sealed Bids (Formal Advertising):
11 |FY 2011(October 2010-September 2011) rev.3/2011
           1)   Invitation to bid
           2)   Clear and complete specifications
           3)   Advertised
           4)   Sealed bids
           5)   Public bid opening
           6)   Unresponsive bids rejected
           7)   Firm-fixed price contract awarded to lowest responsive bidder

               Competitive Negotiation:
           1)   Request for Proposal
           2)   Description of required goods/services
           3)   Advertised
           4)   Technical evaluation of proposals
           5)   Negotiation with top offers
           6)   Price and other factors considered
           7)   Fixed price or cost reimbursable contract awarded



           TYPE OF ORGANIZATION                        SMALL PURCHASE THRESHOLD
         Public Schools                       State/local thresholds will vary. If State/local
                                              thresholds for small purchases are lower than the
                                              Federal threshold, SFA must apply state/local
                                              threshold since it is more stringent.
         Public Institutions                  State/local thresholds will vary. If State/local
         (Local governments)                  thresholds for small purchases are lower than the
                                              Federal threshold, institution must apply state/local
                                              threshold since it is more stringent.
         Privat Non-profit Institutions       Institution’s own small purchase threshold may
                                              vary. Federal small purchase threshold is
                                              $100,000.
         For-Profit Institutions              Small purchase threshold is $100,000

       Specific Prior Written Approval
       Specific Prior Written Approval items are those expenses that are not allowed unless Bright from the Start
       has provided the institution with specific written approval by item and amount before the cost is incurred.
       When the item and amount are properly disclosed during the budget process, the approval of the budget
       does not meet USDA regulatory requirements unless Bright from the Start specifically allowed the cost in
       writing. The institution must complete and submit the Specific Prior Written Approval Form with each
       applicable budget line in the electronic budget package. A list of prior or specific prior written approval
       items is listed in Appendix A.

   9. Monitoring and Revising the Budget
      A sponsoring organization of centers must include in the administrative budget all administrative costs,
      whether incurred by the sponsoring organization or its sponsored centers. If at any point a sponsoring
      organization determines that the estimated projected revenue to be earned during the budget year will be
      lower than the original projected revenue, the sponsoring organization must amend its administrative
      budget to stay within the 15% limitation. The amended budget should reflect the new projected revenue
      and expenditure.

      Estimated Revenue:
12 |FY 2011(October 2010-September 2011) rev.3/2011
       The projected revenue for the amended budget will be the year-to-date reimbursements plus the estimated
       projected income for the remaining months of the fiscal year.

       Day Care Homes Sponsors
       The projected revenue for the amended budget will be the year-to-date reimbursements plus the
       Projected homes “times” rate* for the remaining months of the fiscal year.

      Estimated Expenditures: The projected expenditures for the amended budget will be the year-to -date
       expenditures plus any projected increase in allowable cost for the remaining months of the fiscal year.

       Cost may be reported on an accrual basis; however, the institution’s accounting system must be treat costs
       consistently.

       Institutions using cash based accounting must make all necessary accounting adjustments to report
       accrued costs and income on the final claim for the fiscal year. These institutions must also ensure that
       accrued costs and income reported on the final claim are not reported again in a future period.

      Budgets need to be amended if the following occur:
           A line item increases or decreases by 20% or more;
           A new cost item will be incurred that requires prior or specific prior approval or special
              consideration;
           When an approved specific prior written approval item’s actual cost is found to be more than the
              actual approved amount; and
           If there is a 10% or more increase or decrease in the number of homes sponsored in any one
              trimester (according to the Federal Fiscal year) for Day Care Home Sponsors.

       When a budget amendment is submitted, the sponsoring institution must submit the specific worksheet(s)
       for the item(s) being amended and any supporting documents requested on the budget worksheets, along
       with the Administrative Budget Amendment worksheet. The revised budget must be received a
       minimum of 30 days prior to the date that costs will be incurred. Increased expenses submitted in the
       budget amendment that require prior or specific prior written approval are not allowable program costs
       until the budget is approved.

COMPLETING THE BUDGET PACKAGE (Original)
       Step 1 Complete the Projected Annual CACFP Meal Reimbursement for Independent Institutions. Use
       prior year reimbursement unless the projected amount will increase or decrease by 20%.
       The system will estimate the maximum reimbursement the organization may receive through the Child &
       Adult Care Food Program (CACFP). Once the total reimbursement is estimated, the institution will be
       able to determine the amount of the reimbursement that can be applied to administrative costs.

       Step 2 Complete the Projected Annual CACFP Meal Reimbursements Worksheet to determine the
       potential amount of reimbursement ONLY if the projected amount will increase or decrease by 20%.
       Additional documentation may be requires to justify the increase or decrease.

       Enter data in the input fields [yellow background]. The system is designed to calculate the projected
       reimbursement by selecting the "Calculate Projected Reimbursement" button once the data has been
       entered.

       **Please note that Independent Centers and Center Sponsors must complete this worksheet using
       total participants enrolled in order to determine the correct claiming percentages. Enter the
       number of participants in the free, reduced, and paid meal category according to the completed
       Income Eligibility Statements, roster and attendance sheets.
13 |FY 2011(October 2010-September 2011) rev.3/2011
       Follow the steps below to input the appropriate numbers.
       1) Determine the types of meals to be served and claimed on the food program.
       2) Enter in column (2) the number of days in the month on average the center will be open to serve
       meals. # of days should only be placed in rows that meals will be served.
       3) Enter in column (3) the total enrolled participants beside each meal to be served. If Average Daily
       Attendance is known, it can be entered in this column to get a closer estimate of the projected
       reimbursement. Total enrollment will result in higher reimbursement since it does not take in account
       absences. The system will multiply column (2) by column (3) to obtain the maximum number of meals to
       be served each month.
       4) Enter the number of each income category for each meal to be served in column (4). The percentages
       will be calculated once the "Calculate Projected Reimbursement" is selected. The rates for each income
       category are established by Congress (new rates are effective July 1st each year). The system will
       multiply column the percentage for each category of eligibility by each rate to obtain the projected
       reimbursement for each meal to be served. The system will add all projected reimbursement values to
       obtain total projected monthly earnings.
       5) Enter the number of months in box (5) the center will operate on the CACFP for the remainder of the
       fiscal year for which the reimbursement is being calculated.
               (For example, if organization will be approved to operate May-September, input Box [5]).
               The system will calculate the projected monthly reimbursement by Box (5) to obtain your Total
                Projected Earnings for the year. This number is the maximum reimbursement and does not take
                into account absences (Claims should only be made for actual meals served, so the actual
                reimbursement will vary from the projected reimbursement).
               The Administrative Budget is limited to 15% of the Total Reimbursement. The system will
                multiply the Total Projected Earnings for the year by 15% to determine the estimated Total
                Allowable Administrative Budget amount.
               The center must use the actual reimbursement received as the final factor in determining the
                administrative budget that must not be exceeded at year's end

Note: Day Care Homes Sponsor’s Projected Reimbursement Worksheet will calculate the estimated
maximum administrative earning based on the average number of homes that was claimed in the prior year
on the projected worksheet. It is important to remember that the budget should be based on actual costs.
If actual costs are not available for operating and administrative expenses, an institution can estimate the
costs.

       Step 3: Complete the “Other Program Income” and “Other Income” Forms.

       Step 4: Complete the Operating Budget

Note: Refer to the Budget User Manual for specific guidance on entering data in the electronic budget
package.

The operating budget represents allowable expenses incurred by an institution in serving meals to participant
under CACFP. Except as provided in §226.18(a) (7), sponsors of day care homes do not have allowable operating
expenses.

Total Operating Costs for CACFP- Input the annual cost for each item that is paid with both CACFP
funds and other funds.

   1. Food Cost - The cost of food is the net cost of food purchases and the net cost of delivered meals and
      food items.

   2. Non-food supplies - This cost item is found under the cost category named “Materials and Supplies” in
      FNS Instruction 796-2 Rev. 3. Allowable cost durable supplies includes material and supplies that does
14 |FY 2011(October 2010-September 2011) rev.3/2011
       not meet the definition of equipment. Allowable cost for durable supplies is the costs at the time of
       purchase. Allowable cost of expendable program material and supplies are the actual costs of material and
       supplies used within the month or less at the time of purchases. When expendable materials and supplies
       purchases exceed more than one' month usage, allowable costs are limited to the cost of the items actually
       used for the program during the month.

       Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
              methodology).

   3. Operating Equipment - This cost item is listed in FNS Instruction 796-2 Rev. 3 under the cost item
      entitled “Depreciation and Use Allowances” or “Expensing and Other Property". Equipment means an
      article of nonexpendable, tangible personal property have a useful life of more than one year and an
      acquisition cost which equals or exceeds the lesser of the capitalization level established by the institution
      for financial statement purposes, or $5000.

       Depreciation and use allowances are means of allocating the cost of fixed assets to periods benefiting
       from asset use. The depreciation method used for the program should be consistent with the method used
       by the institution for its other federal sponsored and nonfederal sponsored activities. A physical inventory
       is required, at least once every two years for items funded with federal monies. All equipment purchased,
       depreciated, or claimed use allowance should be documented on the Equipment & Depreciation Record
       form.

       Instead of using depreciation, an institution can be permitted to charge the program, as direct cost the
       program’s share cost of most equipment and improvements purchased by the institution.

       Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
              methodology
          2) Documentation to support the procurement process must be attached (if under the small purchase
              threshold, submit the Small Form Item Documentation Form
          3) Submit the Special Prior Written Approval Request form for item required

   4. Operating Service Labor and Benefits - This cost category can be found under the cost item entitled
      “Labor Costs” in FNS Instruction 796-2 Rev. 3. The institution must have a compensation plan if salaries
      cost is expensed to the CACFP. Documentation of time and attendance and/or time distribution reports
      must be maintained for all labor costs charged to the program. Refer to pages 44-48 of FNS Instruction
      796-2 Rev. 3 and DECAL's Labor Documentation Memo for specific documentation requirements.

       Please complete all columns for employees who spend time on CACFP operating tasks only, not all
       employees of your organization. . These employees can be salaried or hourly employees that are paid a
       rate receive per an employment agreement, a yearly salary amount or a specified monthly amount.

       Bright from the Start: Georgia Department of Early Care and Learning is required to determine that all
       compensation costs are necessary and reasonable for the services performed and cost to the institution’s
       written compensation policy.

       Salaries for operating and administering the CACFP must be consistent with rates paid for similar work
       and consistent with the amounts reported by the U.S. Department of Labor or State Labor Department for
       that field of employment, in the same or comparable geographic location. To ensure that CACFP funds
       used for salaries are necessary and reasonable, Bright from the Start has identified Standard Occupational
       Codes (SOC) and calculated related salary/wage ranges for three program functional areas: Program
       Administration, Provider Training/Monitoring, and Administrative Support. Appendix C presents the
       CACFP Wage Guidelines for the current year. The wage guidelines are derived from the most recent
15 |FY 2011(October 2010-September 2011) rev.3/2011
        Occupational Employment Statistics Survey data. Bright from the Start will be responsible for updating
        Appendix C on an annual basis and ensuring that all institutions receive the updated appendix prior to the
        submission the budget.

        Proper use of the CACFP Wage Guidelines requires sponsoring institutions to annually update their
        Management Plan and ensure that the Plan reflects current CACFP personnel.

        Section II of the Management Plan requires institutions to both list CACFP staff and identify their
        primary tasks. (Please note: The tasks identified in the management plan may not be the primary
        functional area for an employee. The primary functional area should reflect the primary responsibility of
        an employee versus those tasks that may be performed on an as-needed basis. For example, if an
        Executive Director also performs monitoring tasks, the Executive Director’s primary functional area
        would fall under Program Administration. Likewise, if an individual hired for administrative support
        performs monitoring tasks on an as-needed basis, the individual’s primary responsibilities would fall
        under administrative support.)

        The first column in Appendix C contains the same tasks listed in Section II of the Management Plan.
        Each of these tasks has been assigned to one of three functional areas. Sponsoring institutions should
        determine which of the three functional areas best describes the employee’s primary responsibilities. This
        functional area must be listed on the budget worksheet in column 1. After the functional area is
        determined, the sponsoring institution should use the corresponding SOC wage guidelines to correctly
        budget salaries. In addition to using the wage guidelines, the following rules apply:

               The CACFP Wage Guidelines will only be used to gauge the reasonableness of salaries and
                wages. Benefits and applicable taxes are not included in the salary or wage ranges.
               Annual salary rates will be applied to all program staff that works a minimum of 35 hours per
                week. Hourly rates will be applied to staff working less than 35 hours a week since the wage
                guidelines are based on full-time employment or 2080 work hours per year.
               For institutions that have multiple agreements with the Nutrition Services Division of Bright from
                the Start, the wage guidelines will not be applied separately to each agreement. For example, if
                the same monitor is used under more than one agreement number, Bright from the Start will only
                approve one salary for that monitor that may be prorated among multiple agreements.
Note: While the budget is an estimate of these costs, actual costs charged to the sponsorship each month must be
based on the actual time worked for the sponsorship as documented. Time studies are not acceptable
documentation. Documentation of time and attendance and/or time distribution reports must be maintained for all
labor costs charged to the program. Refer to pages 44-48 of FNS Instruction 796-2 Rev. 3 and DECAL's Labor
Documentation Memo for specific documentation requirements.

    The institution must have a compensation plan if salary cost is expensed to the CACFP. The compensation
    plan should include every element of compensation expensed to the CACFP. The compensation plan at a
    minimum should include the rate of pay, hours of work, the institution’s policy and payment schedule for
    regular compensation, overtime, compensatory time, holiday pay, benefits, awards, severance pay and payroll
    tax withholding. The compensation policy must also reflect the requirements of the US Department of
    Labor’s FLSA for all FLSA nonexempt employees.

    Operating Benefits - This cost category can be found under the “Labor Costs” cost category under the Fringe
    Benefits section (section g) in FNS Instruction 796-2 Rev. 3.

    Complete all columns for salaried and hourly employees who perform work for the CACFP. The percentage
    of benefits paid must be equal or less than the percentage of time the employee spends on CACFP tasks.

    The employer’s share of fringe benefit costs is allowable when all like employees (federally and non-federally
    funds) received the same benefits in accordance with the established written policy of the institution.
16 |FY 2011(October 2010-September 2011) rev.3/2011
   When health/dental insurance premiums are paid per person, the amount of these benefits that can be charged
   to the CACFP should be based on the amount of time that employee spends performing duties for the CACFP
   or for that particular sponsorship. The same percentage of time listed on worksheets 1a or 1b as being
   charged to CACFP would be the maximum percentage of benefits that could be charged to CACFP (or the
   sponsorship).

   Attach the following documents to worksheet and submit to State Agency:
          1) Submit a copy of premium or documentation indicating the type and cost of insurance
          2) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology
          3) Submit the Special Prior Written Approval Request form for item required

   5. Operating Utilities, Maintenance & Janitorial - These cost items are found under the cost category
      named “Purchased Services -Other” in FNS Instruction 796-2 Rev. 3. Indicate the total amount of
      expenses incurred in the Total Monthly Cost column. Indicate the percentage allocated to CACFP
      activities. Maintenance and service repair contracts on program equipment require specific prior written
      approval. If utilities are included in rental or lease agreement, utilities should not be listed separately on
      this worksheet.

       Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
              methodology
          2) Attach copies of janitorial service agreements
          3) Submit the Special Prior Written Approval Request form for item required

   6. Space Cost/Rental Cost/Lease Cost - The cost category for this item can be found in three categories in
      FNS Instruction 796-2 Rev. 3: 1) Rental Costs; 2) Facilities and Space Costs; and 3) Depreciation and
      Use Allowance. Depending on the specific situation for which space is being occupied or leased,
      different requirements apply. Use the space cost worksheet to support space costs for administrative or
      operating space used for CACFP operations. A separate worksheet must be completed for the operating
      space and attached to the applicable budget. Attach a copy of the rental/lease agreement. If the space is
      part of a large building to be rented, complete the allocation methodology at the bottom.

        Total Operating Costs paid with CACFP funds - Determine the amount of CACFP reimbursements
         that will be allocated to pay for each item.
        Approved Amount (Bright from the Start Use Only Bright from the Start will input the approval
         amount.

   7. Operating Travel Cost - The items on this worksheet can be found under the cost category entitled
      "Travel" in FNS Instruction 796-2 Rev. 3. List expenses incurred for operating program costs.


Step 4: Complete the Administrative Budget

Note: Refer to the Budget User Manual for specific guidance on entering data in the electronic budget
package.

The administrative budget represents allowable expenses incurred by an institution related to planning,
organizing, and managing CACFP. § 226.16(b)(1) required that the administrative budget submitted by a
sponsoring organization of centers, and the actual administrative costs of such a sponsoring organization, not

17 |FY 2011(October 2010-September 2011) rev.3/2011
exceed 15 percent of the meal reimbursements estimated to be earned by its sponsored centers during the budget
year, unless the State agency grants a waiver.

Documentation must be submitted to support the cost that is listed on the applicable worksheet. However, Bright
from the Start may request additional information in order to make an informed decision regarding the
allowability of the cost.

The institution is required to submit the Specific Prior Written Approval Request Form for special cost items
listed on worksheet of the Budget Package, cost items not specifically identified elsewhere in the Budget Package,
and all costs that are not specifically identified in FNS Instruction 796-2 Rev. 3, but may be listed in OMB
Circulars. In addition to the submission of the request form, the institution may be required to submit additional
supporting documentation in order for Bright from the Start to make an informed decision regarding the
allowability of the cost.

Costs requiring specific prior written approval may not be incurred until approval has been granted from Bright
from the Start.

Worksheets

     1) Administrative Labor - Salaries
This cost category can be found under the cost item entitled “Labor Costs” in FNS Instruction 796-2 Rev. 3. The
institution must have a compensation plan if salaries cost is expensed to the CACFP. Documentation of time and
attendance and/or time distribution reports must be maintained for all labor costs charged to the program. Refer
to pages 44-48 of FNS Instruction 796-2 Rev. 3 and DECAL's Labor Documentation Memo for specific
documentation requirements.

Please complete all columns for employees who spend time on CACFP administrative tasks only, not all
employees of your organization. . These employees can be salaried or hourly employees that are paid a
rate receive per an employment agreement, a yearly salary amount or a specified monthly amount.

Bright from the Start: Georgia Department of Early Care and Learning is required to determine that all
compensation costs are necessary and reasonable for the services performed and cost to the institution’s written
compensation policy.

Salaries for operating and administering the CACFP must be consistent with rates paid for similar work and
consistent with the amounts reported by the U.S. Department of Labor or State Labor Department for that field of
employment, in the same or comparable geographic location. To ensure that CACFP funds used for salaries are
necessary and reasonable, Bright from the Start has identified Standard Occupational Codes (SOC) and calculated
related salary/wage ranges for three program functional areas:                Program Administration, Provider
Training/Monitoring, and Administrative Support. Appendix C presents the CACFP Wage Guidelines for the
current year. The wage guidelines are derived from the most recent Occupational Employment Statistics Survey
data. Bright from the Start will be responsible for updating Appendix C on an annual basis and ensuring that all
institutions receive the updated appendix prior to the submission the budget.

Proper use of the CACFP Wage Guidelines requires sponsoring institutions to annually update their Management
Plan and ensure that the Plan reflects current CACFP personnel.

Section II of the Management Plan requires institutions to both list CACFP staff and identify their primary tasks.
(Please note: The tasks identified in the management plan may not be the primary functional area for an
employee. The primary functional area should reflect the primary responsibility of an employee versus those tasks
that may be performed on an as-needed basis. For example, if an Executive Director also performs monitoring
tasks, the Executive Director’s primary functional area would fall under Program Administration. Likewise, if an
individual hired for administrative support performs monitoring tasks on an as-needed basis, the individual’s
primary responsibilities would fall under administrative support.)

18 |FY 2011(October 2010-September 2011) rev.3/2011
The first column in Appendix C contains the same tasks listed in Section II of the Management Plan. Each of
these tasks has been assigned to one of three functional areas. Sponsoring institutions should determine which of
the three functional areas best describes the employee’s primary responsibilities. This functional area must be
listed on the budget worksheet in column 1. After the functional area is determined, the sponsoring institution
should use the corresponding SOC wage guidelines to correctly budget salaries. In addition to using the wage
guidelines, the following rules apply:

       The CACFP Wage Guidelines will only be used to gauge the reasonableness of salaries and wages.
        Benefits and applicable taxes are not included in the salary or wage ranges.
       Annual salary rates will be applied to all program staff that works a minimum of 35 hours per week.
        Hourly rates will be applied to staff working less than 35 hours a week since the wage guidelines are
        based on full-time employment or 2080 work hours per year.
       For institutions that have multiple agreements with the Nutrition Services Division of Bright from the
        Start, the wage guidelines will not be applied separately to each agreement. For example, if the same
        monitor is used under more than one agreement number, Bright from the Start will only approve one
        salary for that monitor that may be prorated among multiple agreements.
Note: While the budget is an estimate of these costs, actual costs charged to the sponsorship each month must be
based on the actual time worked for the sponsorship as documented. Time studies are not acceptable
documentation. Documentation of time and attendance and/or time distribution reports must be maintained for all
labor costs charged to the program. Refer to pages 44-48 of FNS Instruction 796-2 Rev. 3 and DECAL's Labor
Documentation Memo for specific documentation requirements.

The institution must have a compensation plan if salary cost is expensed to the CACFP. The compensation plan
should include every element of compensation expensed to the CACFP. The compensation plan at a minimum
should include the rate of pay, hours of work, the institution’s policy and payment schedule for regular
compensation, overtime, compensatory time, holiday pay, benefits, awards, severance pay and payroll tax
withholding. The compensation policy must also reflect the requirements of the US Department of Labor’s FLSA
for all FLSA nonexempt employees.

    2) Administrative Labor - Benefits
    This cost category can be found under the “Labor Costs” cost category under the Fringe Benefits section
    (section g) in FNS Instruction 796-2 Rev. 3.

    Complete all columns for salaried and hourly employees who perform work for the CACFP. The percentage
    of benefits paid must be equal or less than the percentage of time the employee spends on CACFP tasks (from
    column 7 of the labor worksheets).

    The employer’s share of fringe benefit costs is allowable when all like employees (federally and non-federally
    funds) received the same benefits in accordance with the established written policy of the institution.

    When health/dental insurance premiums are paid per person, the amount of these benefits that can be charged
    to the CACFP should be based on the amount of time that employee spends performing duties for the CACFP
    or for that particular sponsorship. The same percentage of time listed on worksheets 1a or 1b as being
    charged to CACFP would be the maximum percentage of benefits that could be charged to CACFP (or the
    sponsorship).

    Attach the following documents to worksheet and submit to State Agency:
           1) Submit a copy of premium or documentation indicating the type and cost of insurance
           2) Documentation to support percentage allocated to CACFP must be attached (allocation
                methodology
           3) Submit the Special Prior Written Approval Request form for item required
19 |FY 2011(October 2010-September 2011) rev.3/2011
   3) Equipment - Direct Expenses
   This cost item is found in FNS Instruction 796-2 Rev. 3 under the cost item entitled "Expensing and Other
   Property". "Equipment" means an article of nonexpendable, tangible personal property having a useful life of
   more than one year and an acquisition cost which equals or exceeds the lesser of the capitalization level
   established by the institution for financial statement purposes, or $5000.00.


   DIRECT EXPENSE: List any equipment purchases that will be made in the upcoming fiscal year that will be
   directly expensed. Ensure compliance with Federal procurement guidelines.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation for determining annual depreciation must be attached. Submit
               Equipment & Depreciation Record Form.
          2) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
          3) Submit the Special Prior Written Approval Request form for item required

   4) Equipment - Depreciation
   This cost item is listed in FNS Instruction 796-2 Rev. 3 under the cost item entitled “Depreciation and Use
   Allowances.” Depreciation and use allowances are means of allocating the cost of fixed assets to periods
   benefiting from asset use. The depreciation method used for the program should be consistent with the
   method used by the institution for its other federal sponsored and nonfederal sponsored activities. A physical
   inventory is required, at least once every two years for items funded with federal monies. All equipment over
   $5,000 purchased, depreciated, or claimed use allowance should be documented on the Equipment &
   Depreciation Record form.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation for determining annual depreciation must be attached.
          2) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
          3) Submit Equipment & Depreciation Record Form.

   5) Equipment – Use Allowance
   This cost item is listed in FNS Instruction 796-2 Rev. 3 under the cost item entitled “Depreciation and Use
   Allowances.” Depreciation and use allowances are means of allocating the cost of fixed assets to periods
   benefiting from asset use. The depreciation method used for the program should be consistent with the
   method used by the institution for its other federal sponsored and nonfederal sponsored activities. A physical
   inventory is required, at least once every two years for items funded with federal monies. All equipment over
   $5,000 purchased, depreciated, or claimed use allowance should be documented on the Equipment &
   Depreciation Record form.

   USE ALLOWANCE: A use allowance can be claimed only if the item has been fully depreciated. The
   maximum annual rate for use allowance on equipment is 6 2/3 percent (.0666) of acquisition cost. Multiply
   the Total Cost column by 6 2/3 percent (.0666). This will yield the maximum annual use allowance.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation for determining use allowance must be attached.
          2) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
          3) Submit Equipment and Depreciation Record Form.


20 |FY 2011(October 2010-September 2011) rev.3/2011
   6) Durable Supplies
   This cost item is found under the cost category named “Materials and Supplies” in FNS Instruction 796-2
   Rev. 3. Allowable cost durable supplies includes material and supplies that does not meet the definition of
   equipment.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
          2) Submit the Small Purchase Documentation form for items required


   7) Expendable Supplies
   This cost item is found under the cost category named “Materials and Supplies” in FNS Instruction 796-2
   Rev. 3. Allowable cost of expendable program material and supplies are the actual cost of material and
   supplies used within the month or less at the time of purchases. When expendable materials and supplies
   purchases exceed more than one' month usage, allowable costs are limited to the cost of the items actually
   used for the program during the month. Include paper, pens, and other supplies on this worksheet.

   Attach the following documents to worksheet and submit to State Agency:
         1) Documentation to support percentage allocated to CACFP must be attached (allocation
              methodology).
         2) When entering the quantity per month, please remember to use the average based on the number
              of months the institution will operate.

              If quarterly cost, enter actual quarterly cost and select 3 months.
              If semi-annual cost, enter actual semi-annual cost and select 2 months.
              If annual cost, enter actual annual cost and select 1 month.

   8) Supplies-Educational
   This item is found under the cost category named “Materials and Supplies” in FNS Instruction 796-2 Rev. 3.
   Estimate the cost and description of staff education supplies used for CACFP. Educational supplies include
   nutrition education materials. Include cost of copying that is incurred for educational purposes only. If
   supply costs are not incurred on a monthly basis, indicate the quantity and indicate the frequency, whether
   twice a year, or annually, etc. When completing electronically, the annual cost will have to be manually input
   as the worksheet formula is based on monthly costs.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
          2) When entering the quantity per month, please remember to use the average based on the number
               of months the institution will operate.

              If quarterly cost, enter actual quarterly cost and select 3 months.
              If semi-annual cost, enter actual semi-annual cost and select 2 months.
              If annual cost, enter actual annual cost and select 1 month.

   9) Printing
   This item is found under the cost category named "Publication, Printing, and Reproduction". Printing costs
   are services paid for printing or reproduction of forms, brochures, and newsletters. Specifically list the name
   of the form, instruction booklet, or handbook that will be used this coming fiscal year. Include specific titles
   and quantity. If printing costs are not incurred on a monthly basis, indicate the quantity based on the
   frequency and manually indicate the frequency, whether twice a year, or annually, etc. You may be asked to
   provide additional documentation to support printing costs.
21 |FY 2011(October 2010-September 2011) rev.3/2011
   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
          2) When entering the quantity per month, please remember to use the average based on the number
               of months the institution will operate.

              If quarterly cost, enter actual quarterly cost and select 3 months.
              If semi-annual cost, enter actual semi-annual cost and select 2 months. If annual cost, enter actual
               annual cost and select 1 month.

   10) Postage
   List postage charges such as stamps, bulk mailing, or certified mail charges. The cost of the lease of a
   postage meter should be listed with leased equipment, worksheet 15. If costs are not incurred on a monthly
   basis, indicate the quantity based on the frequency and manually indicate the frequency, whether twice a year,
   or annually, etc.

   Attach the following documents to each line item to submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
          2) When entering the quantity per month, please remember to use the average based on the number
               of months the institution will operate

              If quarterly cost, enter actual quarterly cost and select 3 months.
              If semi-annual cost, enter actual semi-annual cost and select 2 months. If annual cost, enter actual
               annual cost and select 1 month.

   11) Office Space/Rental/Lease Costs
   The cost category for this item can be found in three categories in FNS Instruction 796-2 Rev. 3: 1) Rental
   Costs; 2) Facilities and Space Costs; and 3) Depreciation and Use Allowance. Depending on the specific
   situation for which space is being occupied or leased, different requirements apply.

           1) Rented or leased from an unrelated party - Attach a copy of the rental/lease agreement. If space
              is part of a larger building being rented, complete the allocation methodology at the bottom.
           2) Partially or fully owned by the institution, its administrative personnel, or a related party, or is
              rented or leased from a party that would be considered a less than arms-length transaction - Costs
              associated with less than arms length transactions must be calculated using the depreciation or use
              allowance formula. Depreciation formula=Acquisition Cost minus value of land divided by life
              expectancy. Complete the allocation methodology at the bottom


   12) Utilities, Maintenance, Janitorial Services*
       These cost items are found under the cost category named “Purchased Services -Other” in FNS
       Instruction 796-2 Rev. 3. Indicate the total amount of expenses incurred in the Total Monthly Cost
       column. Indicate the percentage allocated to CACFP activities. Maintenance and service repair contracts
       on program equipment require specific prior written approval. If utilities are included in rental or lease
       agreement, utilities should not be listed separately on this worksheet.

       Attach the following documents to each line item to submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached.
          2) Attach copies of janitorial service agreements.
          3) Submit the Specific Prior Written Approval Request form for items required.
22 |FY 2011(October 2010-September 2011) rev.3/2011
* Arms length transactions for maintenance repair and or upkeep of administrative and food service equipment,
utilities and janitorial services require prior approval. Maintenance and service repair contracts on program
equipments require specific prior written approval.

**Items not listed in the FNS Instruction under this cost category require specific prior written approval.

    13) Insurance Premiums
    This cost item can be found in FNS Instruction 796-2 under the cost item by the same name. Allowable
    insurance cost includes premiums on insurance policies, contributions to self reserves and deductible
    payments for minimal loss that are required and identified in the institution's agreement. Indicate the total
    amount of insurance paid per month in the top table if paid monthly or the total annual cost in the bottom
    table if paid annually.

    Attach the following documents to worksheet and submit to State Agency:
           1) Attach a copy of premium invoice or documentation indicating type and cost of insurance.
           2) Documentation to support percentage allocated to CACFP must be attached (allocation
                methodology).
           3) Submit the Specific Prior Written Approval Request form for all items.

    14) Contracted/Professional Services
    The items on this budget worksheet will be found under different cost categories in FNS Instruction 796-2
    Rev. 3. Audits are found under the cost category of the same name. Accounting, legal, or other professional
    services for persons who are members of a particular profession or who possess a particular skill are found
    under the cost category entitled “Legal Expenses and Other Professional Services.” Data processing are
    found under the cost category “Purchased Services – Other.” Refer to CACFP Policy 02/22 for further
    guidance on contracted services.

    Attach the following documents to worksheet and submit to State Agency:
           1) Copies of all contracts must be submitted. Contracts must meet the requirements that are listed
                below under “Contract requirement”.
           2) Documentation to support percentage allocated to CACFP must be attached (allocation
                methodology)
           3) Submit the Specific Prior Written Approval Request form for required items.
           4) Submit the Small Purchase Item Documentation form to support the procurement process

        Audits Policy No.: CACFP/03-27
        Audits include both organization-wide and program audits meeting the requirements of 7CFR Part 3052.
        Federal regulations require all non-profit institutions which expend $500,000 or more in Federal
        funds per fiscal year to submit an audit report based on Governmental Accounting Standards and in
        compliance with OMB Circular A-133 to the Federal Audit Clearinghouse, Georgia Department
        of Audits and Accounts, and to Bright from the Start: Georgia Department of Early Care and Learning
        (Bright from the Start).

        Bright from the Start reserves the right to require for-profit institutions that expend $500,000 or more in
        federal funds per fiscal year to submit a copy of an audit report based on Governmental Accounting
        Standards and in compliance with OMB Circular A-133 to Bright from the Start on a case-by-case basis.
        The audit report for non-profit institutions must follow the same requirements as previously described for
        non-profit institutions. Bright from the Start will notify selected for-profit institutions if they are required
        to submit an audit report.

        Other Contracts
        Almost all other contracts require specific prior written approval by the State Agency.
23 |FY 2011(October 2010-September 2011) rev.3/2011
       Contract Requirements
       Contracts must be submitted and shall contain the following:

           a)   The duties the contractor will perform;
           b)   Pay rate
           c)   The name of the person or company hired, including a contact address and phone number;
           d)   A provision stating the need for the contractor to submit a timesheet and/or bill, based on the
                work accomplished according to the unit of pay.

       Contractors should be informed that contracts might be verified by Bright from the Start. Therefore, it’s
       recommended that the contract contain a clause to this effect. The payment for services must be in line
       with comparable pay rates for similar work in the same area. A 10%-15% variance will be allowed based
       on the type of contract and will be evaluated on a case-by-case basis.

       To support the actual costs, institutions must obtain a bill, or if paid based on the number of hours
       worked, a timesheet indicating the amount of hours worked for the institution.

       Payroll Services
       Many institutions employ companies to fulfill the responsibilities of paying their staff. Such contacts
       oftentimes include fees for filing income (payroll) taxes, social security, and Medicare taxes. Bright from
       the Start has determined that the cost of these fees are allowable, as filing these fees for CACFP
       employees is required by Federal and/or State law. In contrast, fees for filing the institution’s corporate
       or nonprofit status income taxes, such as filing a 990, are considered general business expenses and are
       not allowable CACFP expenses.

   15) Equipment Rental/Lease
   This cost category can be found in FNS Instruction 796-2 Rev. 3 under the cost category “Rental Costs.” To
   be allowable, all leases must be in the name of the business, not individual names. The institution must
   submit a copy of the lease (not the application) and the current bill, if applicable.
   Special Lease Arrangements require specific prior written approval from the State Agency before the cost can
   be incurred.

   Vehicles
      The program share of rental costs for vehicles owned by third parties that are leased by the institution for
      program purposes must be properly procured.

       Institutions must submit the following in order to approve actual costs of a leased vehicle:
             The institution’s travel policy and reimbursement rates for mileage for use of personal vehicles;
             The plan for use of the vehicle that is being requested;
             Detailed documentation that demonstrates that leasing a vehicle is more economical than paying
                individual employee mileage. (Employees’ mileage costs figured into the analysis to support the
                need for the vehicle would be expected to be excluded from any mileage reimbursement.)
             The analysis should include the total projected mileage that would be incurred and the associated
                costs that would be incurred if staff used their personal vehicle. This analysis should differentiate
                between those miles incurred for monitoring and those incurred for State agency training.
             The institution must write a statement on the budget worksheet indicating they can only claim
                actual costs if the vehicle is approved.

       Supporting documentation that does not fully explain or justify the need for a vehicle will not be
       approved. Institutions may be required to submit mileage documentation for the most recently completed
       year to support the analysis. Additionally, institutions may be required to submit the current odometer
       readings for the vehicle upon request.


24 |FY 2011(October 2010-September 2011) rev.3/2011
       Attach the following documents to worksheet and submit to State Agency:
          1) Attach copies of all leases in effect.
          2) Submit the Small Purchase Item Documentation form to support the procurement process for all
              new leases or those that will be obtained.
          3) Documentation to support percentage allocated to CACFP must be attached (allocation
              methodology).
          4) Submit the Specific Prior Written Approval Request form for all special lease arrangements.

   16) Communication Costs
   This cost item can be found in the FNS Instruction 796-2 Rev. 3 under the cost item by the same name.

       Attach the following documents to worksheet and submit to State Agency:
          1) Copy of a current bill must be attached for each item charged.
          2) Documentation to support percentage allocated to CACFP must be attached (allocation
              methodology).
          3) Submit the Special Prior Written Approval Request form for item required


       Cell Phones
       The FNS Instruction 796-2 Rev. 3 allows the State Agency to impose prior approval requirements for
       cellular telephones and pagers leased or owned by the institution. Bright from the Start has imposed such
       a requirement.

       Bright from the Start understands that cellular devices may be necessary for staff that spends a good
       portion of their time away from the office. Therefore Bright from the Start may approve such devices for
       staff persons who work 40% or more of their CACFP time away from an office.

       The institution must submit a current itemized bill to support the cost. If the institution does not currently
       have an itemized bill, it should take steps to receive such a bill upon approval of the cost. Bills may be
       requested and reviewed periodically by Bright from the Start.

   17) Advertising and Public Relations Cost
   This cost item can be found in FNS Instruction 796-2 Rev. 3 under the category entitled "Advertising and
   Public Relations Costs." Advertising media include newspapers, magazines, radio and television, direct mail,
   web pages, and similar goods. You may be asked to provide additional documentation to support costs.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).

   18) Membership, Subscriptions, and Professional Institution Activities
   This cost item can be found in FNS Instruction 796-2 Rev. 3 under the cost category entitled "Membership,
   Subscriptions, and Professional Institution Activities." Describe purpose for dues, subscriptions or
   memberships. An individual membership is not allowable if institutional memberships are available.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
          2) Submit explanation for request for memberships in civic or community organizations if
               requesting funding.

   19) Daycare Home (DCH) Licensing Expenses (Day Care Home Sponsors Only)
25 |FY 2011(October 2010-September 2011) rev.3/2011
   This cost item can be found in FNS Instruction 796-2 Rev. 3 under the cost category of the same name. Day
   care home sponsoring institution are eligible to use up to $300 of administrative funds per day care home to
   enable certain income eligible homes to meet licensing, registration or alternate approval standards.

   The institution must use OMB Circular A-87 and A-122 and FAR Part 31, as applicable, when developing a
   cost allocation plan.

   20) Other and Special Cost Items
   In the upper table, list items such as bank charges or other allowable items that are not listed elsewhere in the
   budget. Special Cost Items will require the submission of the Specific Prior Written Approval Request form
   and supporting documentation. The special costs items listed in the bottom table identify the specific section
   in FNS Instruction 796-2 Rev. 3 where the item can be found.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
          2) Submit the Specific Prior Written Approval Request form and other documentation to support
               special cost items
          3) For Annual cost enter “1”

   21) Program Operations Travel Expenses
   The items on this worksheet can be found under the cost category entitled "Travel" in FNS Instruction 796-2
   Rev. 3. List expenses incurred for program monitoring, provider training, and any other program related
   activities. Enter the monthly average of expenses incurred.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).

   22) In-State CACFP Workshops and Related Staff training (Online budget item is listed as In State
       Travel)
   State agency sponsored training costs may be found under the "Meetings and Conferences" and “Travel" cost
   category in FNS Instruction 796-2 Rev. 3. Prior approval is required for the allowable travel and registration
   fee for attending meeting and conferences devoted solely to CACFP.

   Institutions must submit a registration form or brochure to support the cost. Workshops that are not totally
   CACFP focused must be prorated based on the amount of time the workshop covers CACFP topics and
   require specific prior written approval.

   Airfare for In-State travel will only be approved if documentation is submitted that shows the airfare is more
   reasonable than travel by car.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
          2) Attach copies of training brochures or registration material for conferences or classes other than
               State Agency sponsored training.
          3) Submit the Specific Prior Written Approval Request form for conferences where CACFP is only
               a portion of a larger child and adult related agenda.

   23) Out-of-State travel for CACFP Related Conferences


26 |FY 2011(October 2010-September 2011) rev.3/2011
   Information regarding CACFP related workshops can be found under "Meetings and Conferences" in FNS
   Instruction 796-2 Rev. 3. The specific provisions regarding lodging and travel allowances are found under
   the “Travel” cost category.
   Attach the following documents to worksheet and submit to State Agency:
            1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).
            2) Attach copies of training brochures or registration material for conferences or classes other than
               State Agency sponsored training.
            3) Submit the Specific Prior Written Approval Request form for conferences where CACFP is only
               a portion of a larger child and adult related agenda.

   24) Participant Training & Support Costs
   The items listed on this worksheet can be found in FNS Instruction 796-2 Rev. 3 under the cost category by
   the same name. Indicate rental costs of facilities or equipment for training for the fiscal year. Also indicate
   costs related to hearing appeals of actions taken by a sponsor that affect a facility's participation or funding.
   (Any related travel costs, such as mileage, meals and lodging is to be included in the Program Operations
   Travel Expenses Category, worksheet 23). Allowable participant training costs require prior approval.

   Attach the following documents to worksheet and submit to State Agency:
          1) Documentation to support percentage allocated to CACFP must be attached (allocation
               methodology).

   25) Staff Training
   Indicate training supplies to be used for staff training. (Any related travel costs, such as mileage, meals and
   lodging is to be included in the Program Operations Travel Expenses Category)

   26) Indirect Costs
   Indirect costs must be supported by a cost allocation plan that assigns an indirect cost rate. The institution
   must submit a copy of the document that shows the indirect cost rate (nonprofit rate agreement) assigned.
   The institution must also submit an explanation of the base amount used to determine the indirect costs and
   the mathematical calculation showing how the indirect costs that are being charged to CACFP were derived.

   Attach the following documents to each line item to submit to State Agency:
          1) Nonprofit rate agreement
          2) An explanation of the base amount used to determine the indirect costs and the mathematical
               calculation showing how the indirect costs that are being charged to CACFP were derived.
          3) Documentation to support percentage allocated to CACFP must be attached.




27 |FY 2011(October 2010-September 2011) rev.3/2011
28 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX A


Items Requiring Prior Approval, Specific Prior Written Approval, and FNSRO Approval
                                                       FNS 796-2, Revision 3

The following is a list of items that require the institution to receive prior or specific prior written approval from Bright from the Start: Department of Early Care
and Learning (DECAL) or the Food and Nutrition Services Southeast Regional office prior to using CACFP reimbursement to pay for the item. The first column
lists the cost topic that requires prior approval; the second column lists the section; and the third column lists the page where the item is found in the FNS
Instruction. The fourth column lists the specific item that requires prior approval. If the institution uses reimbursement to pay for any of the items listed, but
does not submit a budget and receive approval prior to paying the cost, the cost is not allowable and will have to be repaid to the CACFP account.

         Cost topic             Section      Pg #                             Specific Item                              Prior      Specific Prior FNSRO
                                                                                                                        Approval       Written     Approval
                                                                                                                                      Approval
Advertising & Public             3 a (2)     20     Public relation costs for pamphlets, news releases & other             YES
Relations Costs                                     information services

Communications                   8 a (1)     23     Cellular phones & pagers owned or leased by the institution –          *YES
                                                                                                                         DECAL
                                                    SA’s may impose prior approval or specific prior written
                                                                                                                         requires
                                                    approval
Contributions & Donation          10 a       24     Costs required to make goods or services donated to the                              YES
Costs                                               institution usable for the Program
Day Care Home Licensing        12 a (1, 2    27     Supplies such as smoke detectors & fire extinguishers; minor                         YES
Standards Costs                  & 3)               alterations such as adding handrails; and the costs of fire &
                                                    safety inspections & licensing fees are required to permit an
                                                    income eligible day care home to meet licensing approval
                                                    standards

Depreciation and Use           13 a (1)(b)   29     All space and facility depreciation methods other than 30 year                       YES
Allowance                                           straight line or method used & accepted for Federal income tax
                                                    reporting purposes

                               13 a (1)(c)   29     For publicly owned buildings, the amount assigned as the                             YES
                                                    acquisition cost
                               13 a (2)(a)   30     All equipment depreciation methods other than 15 year straight                       YES
                                                    line depreciation or method used & accepted for Federal income
                                                    tax reporting purposes
                                13 d (1)     31     Unknown acquisition cost                                                             YES



29 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX A

         Cost topic           Section      Pg #                                Specific Item                                Prior     Specific Prior FNSRO
                                                                                                                           Approval      Written     Approval
                                                                                                                                        Approval
                                13 e       31     Life expectancies                                                                       NO



Employee Morale, Health, &       14        31     All costs in this category                                                              YES
Welfare Costs & Credits
Expensing Equipment and         16 a       33     The program's share of the cost for most equipment &                                    YES
Other Property                                    improvements can be directly expensed (NOTE: See 16 b for
                                                  unallowable costs.)
Facilities & Space Costs      17 a (3)     35     The costs for rearrangement & alterations to facilities owned by                        YES
                                                  the institution that are necessary for efficient and effective
                                                  program operations but do not result in capital improvements
                                                  (NOTE: See unallowable costs.)

                              17 d (1)     36     All special lease arrangements (see 36 d, below)                                        YES



                              17 d (2)     36     Costs incurred by the institution during periods of non                                 YES
                                                  occupancy
                              17 d (3)     36     A single base such as square footage to prorate maintenance and                         YES
                                                  operation costs between program and non-program activities
                                                  when these costs are not included in rent or other space charges


Insurance                    21 a (1)(a)   37     Costs of other insurance, not required by the SA, maintained by                         YES
                                                  the institution in connection with the general activities of the
                                                  Program when the type, extent, & cost of coverage in
                                                  accordance with general state or local government policy and
                                                  sound business practices

                             21 a (1)(b)   37     Costs of insurance or contributions to any self insurance reserve                       YES
                                                  covering the risk, loss, or damage to Federal Government
                                                  property to the extent that the institution is liable for such loss or
                                                  damage




30 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX A

         Cost topic          Section      Pg #                              Specific Item                                Prior     Specific Prior FNSRO
                                                                                                                        Approval      Written     Approval
                                                                                                                                     Approval
                            21 a (1)(c)   37     Contributions to a reserve for self insurance to the extent that the                  YES
                                                 reserve meets state insurance requirements and the type of
                                                 coverage, extent of coverage, & the rates & premiums would
                                                 have been allowed had insurance been purchased to cover the
                                                 risks

Interest, Fund Raising, &   22 a (1)(a)   38     Stop payment charges for facility advance & reimbursement                             YES
Other Financial Costs            i               payments and other Program disbursements, whether by check
                                                 or EFT

                            22 a (1)(a)   38     Program account reconciliation and analysis fees, including the                       YES
                                 ii              allocated share of fees charged for commingled accounts


                             22 a (2)     38     Interest incurred after 10/1/98, for non-profit private institutions                  YES
                                                 and after 10/1/80, for public institutions on institutional debt
                                                 used to acquire or replace allowable equipment or other property
                                                 or make allowable improvements (NOTE: See unallowable
                                                 costs.)

                             22 c (1)     40     Arms length transactions (NOTE: See section on information                            YES
                                                 required when requesting specific prior written approval.)


                             22 c (2)     41     Less-than-arms-length transactions (NOTE: See section on                              YES          YES
                                                 information required when requesting specific prior written
                                                 approval.)
Labor Costs                  23 d (1)     48     Compensation to members of nonprofit institutions, trustees,                          YES
                                                 directors, associates, officers, or the immediate families thereof
                                                 require special consideration and specific prior written approval


                             23 d (2)     48     Stipends to compensate board members for the costs of                                 YES
                                                 attending corporate meetings when program business is
                                                 conducted requires special consideration and specific prior
                                                 written approval




31 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX A

         Cost topic          Section     Pg #                              Specific Item                                Prior      Specific Prior FNSRO
                                                                                                                       Approval       Written     Approval
                                                                                                                                     Approval
                             23 d (3)    48     Any change to an institution's compensation policy that results                        YES
                                                in a substantial increase in the institution's level of compensation
                                                to an individual or all employees requires special consideration
                                                and specific prior written approval

Overtime, Holiday Pay, and     23 h      51     Payment of overtime, holiday pay for work performed on a                               YES
Compensatory Leave                              nonworking holiday & compensatory leave (NOTE: See section
                                                regarding exceptions.)

                               23 i      52     Incentive payments and awards (except for awards of minimal                            YES
                                                value, see i (6))
                               23 j      54     Severance pay when it does not constitute excess compensation                          YES
                                                and is required by law, written employer/employee agreement,
                                                written policies of the institution, or the terms of a negotiated
                                                written labor relations agreement


                             23 k (1)    54     Deferred compensation when SA determines the deferral is in                            YES
                                                best interest of the Program and it does not represent the
                                                establishment of a contingency fund, an attempt to defer
                                                compensation as a result of an over claim, repayment request, or
                                                funding limitation or an attempt to acquire Program funds for
                                                unallowable cost purposes

                             23 k (11)   58     Amendments or modifications to approved deferral plans                                 YES



Legal Expenses & Other       24 a (1)    58     The sponsoring institution's cost to pursue administrative and                         YES
Professional Services                           judicial recovery of funds due from sponsored facilities

                             24 a (2)    58     The institution's costs for services performed by individuals who                      YES
                                                are not officers, employees or members of the institution
                                                (NOTE: See section for additional information.)

Management Studies            26 (a)     61     The cost of studies directly related to the Program that are                           YES
                                                performed by entities other than the institution itself
Material Cost                   27       63     Specific prior written approval for durable supply acquisitions          *YES
                                                                                                                        DECAL
                                                                                                                        requires

32 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX A

         Cost topic             Section      Pg #                              Specific Item                                Prior      Specific Prior FNSRO
                                                                                                                           Approval       Written     Approval
                                                                                                                                         Approval
Meetings & Conferences          28 a (1)     63     Travel & registration fees for attending meetings & conferences           *YES
                                                                                                                            DECAL
                                                    devoted solely to the CACFP
                                                                                                                            requires



                                28 a (2)     63     Prorated share of travel & registration fees when CACFP is only                        YES
                                                    a portion of a larger Child & Adult Care related agenda
Membership, Subscriptions,      29 a (4)     64     Costs of public and not for profit institutions memberships in                                      YES
& Professional Institution                          civic or community institutions
Activities


Participant Training & Other    30 a (1)     65     Training-administrative costs (NOTE: See section for a list of           YES
Participant Support Costs                           these costs.)


                                30 a (2)     65     Training-operating costs (NOTE: See section for a list of these          YES
                                                    costs.)
                                30 a (3)     66     Facility appeals costs (NOTE: See section for more                       YES
                                                    information.)
Proposal Costs                   32 (a)      66     Costs of preparing proposals on potential FNS Child Nutrition                          YES
                                                    Program grants
Publication, Printing, &           33        67     All allowable costs require prior approval                               YES
Reproduction
Purchased Services -- Other 34 a (1)(a)      67     Arms-length transactions for the maintenance, repair or upkeep           YES
                                                    of administrative & food service equipment that neither adds to
                                                    its value nor prolongs its intended life

                               34 a (1)(b)   68     Costs of utilities, purchased security and janitorial service, etc.,     YES
                                                    not included in space or labor compensation costs
                                34 a (2)     68     All less-than-arms-length transactions; maintenance & service                          YES
                                                    repair contracts on Program equipment; and all other purchased
                                                    service costs needed for Program operation



33 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX A

         Cost topic    Section   Pg #                             Specific Item                               Prior     Specific Prior FNSRO
                                                                                                             Approval      Written     Approval
                                                                                                                          Approval
Rental Costs             36 d    72     Special lease arrangements -- capital leases, sale-with-lease-back                  YES
                                        leases, less-than-arms-length transactions, & lease with option-
                                        to-purchase (NOTE: See section for more information. These
                                        also require special consideration.)

Termination Costs        38 a    75     Institution's necessary & reasonable costs of ceasing CACFP                         YES
                                        operations
Travel                   39      76     Costs for Program travel (NOTE: See section for more                   YES
                                        information.)




34 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX B


Day Care Home Sponsor Projected Administrative Reimbursement Worksheet


Name of Institution:



Total # of Homes:

Input the total number of homes currently sponsored at this time in the cell above. The table below will allow the calculation of the maximum
administrative reimbursement that the institution will receive for the upcoming fiscal year. However, because sponsors will only get paid for homes that
claim reimbursement, and not all homes approved, the administrative reimbursement will likely be less. Sponsors should be aware of this fact and create
a realistic budget based on actual costs that must be incurred to operate the CACFP. The claiming history of their sponsored facilities should be taken
into consideration when determining the projected administrative reimbursement; however, the projected amount should be equal to or less than the
maximum administrative reimbursement listed below. The estimated maximum administrative earning based on the average number of homes that was
claimed in the prior year is the number that Bright from Start will used during the renewal period. Budgets that exceed the maximum administrative
reimbursement listed below must be justified in writing by the sponsor.


                                   # Homes per                                       Monthly                                                Yearly
                                    each Rate         Rate                        Reimbursement              # Months                   Reimbursement

First 50 homes or less      (#1-
#50 homes)                                       X   $102.00           =                              X         12            =

Next 150 or less         (#51-
#200 Homes)                                      X   $78.00            =                              X         12            =

Next 800 homes           (#201-
#1000 homes)                                     X   $61.00            =                              X         12            =

Rest of homes sponsored
(homes #1001 and over)                           X   $53.00            =                              X         12            =
                                                                                                                Total Maximum
                                                                                                                Administrative
Total # of Homes:                                                                                               Reimbursement




35 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX C

Wage Guidelines
                                                                                                                    FUNCTIONAL AREAS
                                                                                            1                                2                                          3
                           CACFP Tasks
                                                                                                                   Provider Training and
                                                                            Program Administration                                                       Administrative Support
                                                                                                                        Monitoring
General Program Oversight                                                                   X
Complete Application                                                                        X
Complete Management Plan                                                                    X
Complete Budget                                                                             X
Determine IES                                                                                                                                                          X
Training (Provide or Attend)                                                                X
Accounts Payable                                                                            X
Process Payroll                                                                             X
Review and correct supporting claim documentation                                                                                                                      X
Prepare claim for reimbursement                                                                                                                                        X
Computer/data entry                                                                                                                                                    X
Plan Menus                                                                                                                                                             X
Record/calculate point of service meal counts                                                                                                                          X
General CACFP Admin                                                                         X
Clerical                                                                                                                                                               X
Monitoring                                                                                                                       X
On-site reviews                                                                                                                  X
Travel to/from reviews                                                                                                           X
Supervisory oversight of monitors                                                           X
Writing review reports                                                                                                           X
Follow-up reviews                                                                                                                X
Parental contact                                                                                                                 X
Training facilities                                                                                                              X
Claims processing                                                                                                                                                      X

Standard Occupational Code (SOC)                                                      11-9151                  21-1091                               43-6014
                                                                               Social and Community                                                  Secretaries, Except Legal,
SOC Title                                                                                                      Health Educator
                                                                                 Service Manager                                                     Medical and Executive
Occupational Employment Statistics (OES)
                Maximum - Annually                                         $63,962.08                          $80,419.04                            $31,478.72
                 Maximum - Hourly                                          $30.75                              $38.66                                $13.16

*Note: Annual salaries are based on 2,080 hours per year. In addition, hourly rates should only be used for part-time staff. FY 2010 Wage guidelines are for new hires as of October 1, 2009.

36 |FY 2011(October 2010-September 2011) rev.3/2011
       APPENDIX C



                                         SMALL PURCHASE ITEM DOCUMENTATION
                                   Bright from the Start: Georgia Department of Early Care and Learning
Name of Individual Soliciting Information:
Instructions: Use this form to document the small purchase procedures. Attach additional supporting documentation to this form. Circle or note the
vendor selected. Complete bottom section if the lowest bidder was not selected.

                                Individual’s
                                                   Item Name/Description of the
                 Vendor          Name and                                                                                             Final
                                                     goods or services, including                                         Price
                  Name,           Position                                                       Method    Discussion               Negotiated
                                                 quantity, any other pertinent terms   Date of                          Quote and
                 Address,      Providing Price                                                   of           with                    Price
                                                    or conditions required by the      Contact                          Duration
                Telephone          Quote                                                         Contact    Vendor
                                                  organization and date of services
               Vendor 1




               Vendor 2




               Vendor 3




If the lowest bidder was not selected, document below the reasons the lowest bidder could not meet the specific contract terms sought.


       37 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX E


Specific Prior Written Approval Request Form
Specific Prior Written Approval items are those that are not customarily incurred in the routine operation of the
CACFP. The organization must complete and submit the Specific Prior Written Approval Request Form when
requesting special cost items listed on worksheet 20 of the Budget Package, costs not specifically identified on
another worksheet in the Budget Package, for all less than arms length transactions, and for all costs that are not
identified in FNS Instruction 796-2 Rev. 3. Attach additional sheets or supporting documentation such as contracts as
applicable.
Institution Name:                                                                            Agreement #:
Fiscal Year Cost will be incurred:                                                 Estimated Date of Purchase:
Item Name and Description: (Specifically identify the item requested)              Cost of item: (Indicate frequency and cost per occurrence)
1) Explain why this cost is necessary and why the organization would not be able to operate the CACFP without incurring this
cost:




2) Describe how the type and amount of the cost is reasonable and does not exceed what a prudent person (or a sponsored facility)
would incur under the same circumstances by answering the following:
a) How does the cost represent a generally accepted sound business practice and provide specific examples of such:



b) Indicate the type of transaction below. (For a definition a less than arms length transaction, refer to Exhibit A of FNS
Instruction 796-2 Rev. 3. Arms length transaction would be those not considered less than arms length.)
                                                                 Less than arms
    Arms length transaction                                                               Transaction results in ownership interest
                                                            length transaction
c) Indicate how the organization is exercising good judgment by incurring this cost, considering their responsibilities to the
organization, its members, employees, clients, the public at large, the Federal government and CACFP (Administrative Sponsors
must specifically indicate how the item will benefit sponsored facilities and its impact on the facility):




d) Identify the established practices of the organization for which this cost would represent an ordinary expense (You may be
required to submit personnel policies of other documentation of this cost):



3)    Check here to certify that proper procurement procedures will be followed. If a small purchase, complete and submit the
Small Purchase Documentation Form.




                     Signature of Institution Staff                                                          Date




38 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX F



EXAMPLES

Example: Little Ones, Inc. participates on the CACFP. Little Ones, Inc. buys a mainframe computer system at a
cost of $8,200.00 and has a life expectancy of 5 year.
When charging depreciation expense to CACFP, the depreciation method should be consistent with the method
used by the institution for its other activities Depreciation is calculated by using the acquisition cost, the life
expectancy of the item, and the costs of improvements, alternations or repairs that extend the useful life of the
item.
Depreciation Method:
(Straight line depreciation spreads depreciation expenses evenly across an asset’s depreciable life)
Example:
$8200.00 total acquisition cost
5-life expectancy
$8200 / 5 life expectancy = $1640.00 yearly depreciation amount

(Double Declining is a form of accelerated depreciation that prescribes twice an annual rate of depreciation
twice that of the straight line method)
Example:
$8,200.00 total acquisition cost
5-life expectancy
$8200 / 5 life expectancy = $3,280.00 1st year, $1,968.00 2nd year, 1181.00 3rd year, 708.00 4th year and 425.00 5th
Year

(Sum of the year is a form of accelerated method of depreciation based on an inverted scale of total digits
for the years of depreciable life.)
Example:
$8,200.00 total acquisition cost
5-life expectancy
$8200 / 5 life expectancy = $2,733 1st year, $2,187 2nd year, $1,640.00 3rd year, $1093 4th year and $547 5th year


Proration Example:
The following is an example of how to prorate rental charges for the office used to complete paperwork.
The total square footage of the office would be divided by the total square footage of the entire building. This
percentage would be multiplied by the rent. This calculation would yield the percentage of rent for the office as a
whole for the entire day. Since the office is not used the entire day for CACFP purposes, the amount of rent
would have to be further prorated based on the amount of time the office is used for CACFP purposes. This
calculation is done by dividing the amount of time the office is used for CACFP purposes by the total amount of
time the center is open for business. This percentage is then divided by the amount formerly prorated by the
square footage.




39 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX F



Example: Rent is $1,000. Square footage of the office is 800 square feet. The entire building is 10,000 square
feet. The center is open 10 hours a day and the office is used 3 hours out of the day for CACFP purposes.

Allocation Methodology
800 / 10,000 sq feet = .08 or 8% percentage of square footage for office
$1,000 (in total rental costs) x .08 = $80 total rental cost for office space
3 / 10 hours per day = .3 or 30 % percentage of time office used for CACFP $80 x .3 = $24
In this scenario, $24 could be charged to the CACFP for rent for use of the office for completion of paperwork.




40 |FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX G




          CONTACT INFORMATION
                                             Nutrition Services
                                Child and Adult Care Food Program (CACFP)

        Lou Brienza                                    Director                        404-651-8197

       Leslie Truman                      Nutrition Administrative Assistant           404-657-1779

       Falita Flowers                Program Manager (Applications and Training)       404-656-6452

      Marissa Hamm              Program Manager (Compliance and Nutrition Education)   404-651-7433

       Maria Reznik                             Policy Administrator                   404-651-7181

       Sonja Adams                   Nutrition Program Administrator-Compliance        404-651-8193

   Meggan Hemans-Reese               Nutrition Program Administrator-Compliance        404-651-7192

       Anjulyn Davis                 Nutrition Program Administrator-Compliance        404-656-6292

    Nina Bryant-Hunter                          Training Coordinator                   404-656-0285

      Christy McCray                        Nutrition Program Coordinator              404-651-7191

       Coretta White                        Business Operations Specialist             404-656-3221

      Geneise Graham                            Applications Specialist                404-656-6411

      Angelica Flucas                       Business Operations Specialist             404-651-7426

       Teresa Todd                                   Accountant                        404-656-2472

       Brenda Carter                            Nutrition Consultant                   229-238-2958
                                                South West Georgia
      Valerie Coulton                           Nutrition Consultant                   770-357-4927
                                                   West Georgia
          Vacant                                Nutrition Consultant                   770-359-5806
                                                South Metro Georgia
       Danna Foster                             Nutrition Consultant                   678-222-7789
                                                North Metro Georgia
       Sonya James                              Nutrition Consultant                   770-357-7012
                                                 East Metro Atlanta
    Rae-Marie Lockhart                          Nutrition Consultant                   478-599-9801
                                                  Central Georgia
      Bridgett Merritt                          Nutrition Consultant                   770-357-7062
                                                       Fulton
      Reynold Salamo                            Nutrition Consultant                   866-370-3203
                                                 South East Georgia
      Wanda Simkins                             Nutrition Consultant                   678-222-7787
                                                North Metro Georgia
       Sherrie Tuten                            Nutrition Consultant                   229-474-1289
                                                  Middle Georgia



41 | FY 2011(October 2010-September 2011) rev.3/2011
APPENDIX G




42 | FY 2011(October 2010-September 2011) rev.3/2011

				
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