Accounting Procedures Handbook

CAFETERIA POINT OF SALE SYSTEM 16.1 FOOD SERVICE FUND I. OVERVIEW The Food Service Department of the Wicomico Board of Education is responsible for all 25 School cafeterias in its district. The Department is responsible for meal planning, food and food supply purchasing, as well as any Governmental reporting that is required. Each cafeteria is equipped with Point of Sale software known as Horizons One Source. This software tracks all items sold. It summarizes Free and Reduced Breakfast and Lunches sold as well as all paid Breakfasts and Lunches. Each student has an “account” in the system. This allows parents to send in checks to be deposited into the student’s account. As the student goes through the food line, he or she gives the cafeteria worker his/her account number and the cost of the meal is then debited from their account. All students receiving a breakfast or lunch must give their account number whether they are a paid student or a Free/Reduced student. This is in accordance with government guidelines that state that students receiving Free and Reduced meals must not be overtly identified. II. CONTROL OBJECTIVES • To ensure the Food Service Fund is reported in accordance with generally accepted accounting principles. • To ensure that all revenues for food sales are received and accounted for in a timely fashion. • To ensure that the Food Service bank account is properly reconciled and maintained. III. PROCEDURES A. General Controls Surrounding Food Service: • Management reviews the Board’s financial statements on a periodic basis and investigates significant variances from budget and expected results • The Board approves meal rates in accordance with applicable laws and regulations. • Monthly claim reimbursements are filed with the Maryland State Department of Education. Claim reimbursements are prepared based on the number of meals served. The Food Service Director reviews and approves the claim reimbursement report prior to filing. • Revenues by revenue source and activity are reviewed regularly by management. • Cash receipts are reconciled to general ledger postings. B. Cash Receipts • After each day’s Breakfast and Lunch shifts are completed, the cashiers must go through a close out process with their register. They must count all cash in their drawer and enter the amounts into the Point of Sale system. The Cashier then totals the drawer, and the POS program determines any over/short amounts and the amount of cash/checks to be deposited. The Cafeteria Manager then counts the drawer to determine accuracy prior to the deposit being made. The summary report for each register is then printed out. • The Cafeteria Manager runs a Grand Total Report that combines all the information from the individual register’s report. This report lists the register’s total sales, total deposits into student accounts and total paid, free, and reduced lunches served. It also discloses the total amount to be deposited for that day’s Breakfast and Lunch shift. The deposit slip should match this total. • If there is an over/short amount of greater than $5.00, the cashier must find the source of the difference. If the over/short amount is less than $5.00, then no additional work must be done.