Chapter 7: Financial Management
I. Management of Funds
The same system is used for commitment and expenditure of CSFP funds as used for all other DCF commitments and expenditures. Department and expenditure codes established by the Kansas Department of Administration, Accounts and Reports Division, are used to assign costs to the appropriate cost centers and expenditure classifications. Expenditure documents are initiated by the Local CSFP Managers or the DCF CSFP Coordinator and submitted to General Services for review and processing according to Department of Administration, Accounts and Reports Division policies as outlined in the Department of Administration, Policy and Procedure Manual.
State employee positions are established by the Department of Administration, Office of Human Resources, upon request by the CSFP Coordinator. The Office of Human Resources assigns Kansas Civil Service classifications to positions per regulations prescribed by the Department of Administration. Employee records are also maintained in accordance with State Statutes and Regulations. Time studies are done in accordance with USDA regulations to monitor state employee time used for CSFP duties.
Travel expenditures charged to CSFP are approved by the bureau director and are processed using Kansas Administrative Rules and Regulations for travel expenditures.
Each LA is informed about the importance of documenting expenditures to prevent audit exceptions and refunds for unallowable costs. LA indirect costs are considered an allowable cost at the rate set by the Office of Grants and Contracts.
DCF provides each LA with the necessary forms to obtain reimbursement of allowable CSFP costs from DCF or they may also be obtained here
II. Fiscal Procedures
A. CSFP Contracts
Contractual Grants between DCF and LA’s cover the State Fiscal Year (SFY), July 1 through June 30. All LA grants go through a Request for Proposals process and go out for bid. All LA grants are approved and signed by the Secretary of DCF or his or her designee.
B. Monthly Reimbursement of Expenditures
Each LA receives grant CSFP funds by submitting monthly Status Report, Budget Transaction Report and Budget Itemization Report to DCF. These forms may be found at the website mentioned above in Section I along with instructions on how to fill out and submit. The total reimbursement for the grant period may not exceed the total grant award.
All expenditures should be actual costs and not estimates.
Each reimbursement request shall be submitted to DCF no later than the 15th of the following month in which the expenses were incurred.
III. Procedure for Purchasing Equipment, Etc. with CSFP Funds
Purchases up to $5,000 must be approved by DCF. The State Division of Accounts and Reports requires DCF to be fully accountable for the purchase of any non-expendable property in the amount of $5,000 or more. The State and Regional USDA office, prior to purchase, must approve all capital expenditures of $5,000 or more. Therefore, when agencies intend to use CSFP funds for purchases, the following information must be submitted in writing to DCF in advance of making the purchase:
- A description of the item to be purchased, including brand name. Equipment must meet criteria established by USDA/FNS and DCF;
- the estimated cost of the item;
- how many hours a week the equipment will be used for CSFP purposes;
- the amount of CSFP funds to be used to purchase the item; and
- justifications for purchase.
On receiving the above information, DCF will return written approval to purchase the property. The time involved between submission of the LA’s request and a letter of authorization depends on whether or not approval from USDA is required. This approval may take several weeks to process. Once state approval for an equipment purchase is granted, the LA must purchase said equipment during the current federal fiscal year. If the equipment is not purchased within the time frame allowed, the LA will need to initiate a new request. The LA should contact DCF if the equipment cannot be purchased during the current federal fiscal year.
After approval and purchase of the property, the LA must submit the following information to DCF:
- Description of the item, including brand name;
- actual cost of the item;
- amount of CSFP funds used;
- serial number of the item purchased; and
- copy of invoice.
All equipment purchased with 100% CSFP funds is the property of CSFP and must be returned to DCF if the LA contract is terminated or not renewed.
IV. Fiscal Close-out Information
There are two time periods that are critical to get reimbursement requests submitted and they are June 30th and Sept 30th. DCF will work with organizations to remind them of these impending deadlines for payments.
V. Record Keeping Requirements
Each LA shall maintain full and complete records concerning program operations. Records shall include, but not be limited to, information pertaining to financial operations, food delivery systems, equipment purchases and inventory, certification, nutrition education and fair hearing procedures.
All supporting documentation and records shall be retained for a minimum of the current federal fiscal year plus the three previous federal fiscal years. If necessary for resolution of audits or litigation, longer retention may be requested through written notice to the LA.
VI. Monthly Program Statistics
Participation statistics and other program data are obtained monthly as needed through information received from the LA.