If finances are the foundation of a quality program, then record-keeping is the glue or mortar that holds the foundation together.
Click on the "Record-Keeping" PowerPoint below to open. For this document, you can simply open to view or save to your computer and then view. This document does not open in a new window, so you will have to click on the 'back arrow' in the upper left corner of your computer screen to go back to the tutorial.
record_keeping.pdf | |
File Size: | 1046 kb |
File Type: |
As noted in the PowerPoint above, record-keeping has many facets. Administrators/directors should be keeping a variety of documents to track of variety of events regarding finance. For example, it is prudent to maintain a ledger that indicates tuition owed and tuition paid by each family in your program. With this practice, you will always know when a family's balance is overdue. A good practice regarding overdue tuition as it relates to record-keeping is to make copies of any correspondence you have with families regarding the overdue tuition. If you send a notice home, be sure to keep a dated copy of that notice.
Directors/Administrators should develop a system for themselves on where and how to keep track of receipts and invoices. Relating this back to your home budget, many adults have an envelope system with one envelope for each category. For example, all receipts related to house improvements or home repairs go in the envelope labeled 'house'. Other adults simply put all their receipts for the year into a shoebox...this is NOT a recommended practice for a small or large business. Whatever system you develop to keeping track of your receipts/invoices, be sure it is efficient and effective to meet your needs. You might ask your accountant for suggestions or see pictures below for some possibiliities.
Directors/Administrators should develop a system for themselves on where and how to keep track of receipts and invoices. Relating this back to your home budget, many adults have an envelope system with one envelope for each category. For example, all receipts related to house improvements or home repairs go in the envelope labeled 'house'. Other adults simply put all their receipts for the year into a shoebox...this is NOT a recommended practice for a small or large business. Whatever system you develop to keeping track of your receipts/invoices, be sure it is efficient and effective to meet your needs. You might ask your accountant for suggestions or see pictures below for some possibiliities.
The key to good record keeping is having a system that is efficient and effective, so you can find the document or file that you need, when you need it. If you would like to learn more about how to create an organized filing system for your program, watch the following video: File Drawer Organizing at http://www.youtube.com/watch?v=ItSighEKfiw (This weblink will NOT open in a new window so you will need to click on the back arrow in the upper left corner or your screen to get back to this tutorial.) If you prefer to organize your files on a computer rather than in a file drawer, remember that your computer desktop should reflect a clean, organized system. That means you do not want too many folders or file icons on it. A clean, well-organized desktop ~ either your office desktop or your computer desktop ~ will help you manage all your paperwork. Whether you choose to utilize a file cabinet system or a computer system you will want to create one file (folder) labeled 'Budget (and the year)' to store all of your budget documents included in this tutorial.
Tracking Income and Expenses
Like previous documents, there are 2 tabs at the bottom, one with some guidance and one for you to use your working document.
As mentioned in the Budget information, you do not want to continually change your budget (blue column), however, as a program you will need to keep track and make some adjustments as the situation warrants.
Remember, on this form, you want to track ACTUAL income and ACTUAL expenses. For example, if you send out tuition bills in January for a total of $8,000 but only receive $7,500 in payments, then you would insert $7,500 in the January Actual Income column.
As mentioned in the Budget information, you do not want to continually change your budget (blue column), however, as a program you will need to keep track and make some adjustments as the situation warrants.
Remember, on this form, you want to track ACTUAL income and ACTUAL expenses. For example, if you send out tuition bills in January for a total of $8,000 but only receive $7,500 in payments, then you would insert $7,500 in the January Actual Income column.
Click on the "Tracking Actual Income and Expenses" document below to open. Save to your computer. These documents are not designed to be printed, as they spread across multiple pages. This document does not open in a new window, so you will have to click on the 'back arrow' in the upper left corner of your computer screen to go back to the tutorial. You may have to 'enable editing' once this document opens, depending on the Office version you have.
tracking_actual_income_and_expenses.xls | |
File Size: | 68 kb |
File Type: | xls |
Keeping good records is one of the most overlooked, yet vital, business management activities for success!
-- Aims Accounting
Tracking Meals and Snacks
Whether your program is participating in the USDA Child and Adult Care Food Program (CACFP) or not, it is important to keep records of menus, number of children served at each meal/snack, the date/time meals/snacks are served. Many computer programs such as ProCare and EZCare offer support for meal tracking.
Menus are often planned a week or a month at a time, or your program may use a rotating menu. In either case, you must keep on hand a menu of the food that was actually served on any given day. For example, you may have put strawberries on your menu for today's breakfast, but the strawberries at the grocery store looked old, so you opted to purchase oranges instead. This adjustment in food offering will need to be put on your menu. Simply cross off the strawberries and hand-write in the oranges. Save your old menus for at least one year.
Children need routine, so it is important that meals and snacks are served at approximately the same time every day. The best way to ensure this is happening is to have a WRITTEN daily schedule that includes meals and snack times and monitor to ensure teachers are following the scheduled meal times.
Menus are often planned a week or a month at a time, or your program may use a rotating menu. In either case, you must keep on hand a menu of the food that was actually served on any given day. For example, you may have put strawberries on your menu for today's breakfast, but the strawberries at the grocery store looked old, so you opted to purchase oranges instead. This adjustment in food offering will need to be put on your menu. Simply cross off the strawberries and hand-write in the oranges. Save your old menus for at least one year.
Children need routine, so it is important that meals and snacks are served at approximately the same time every day. The best way to ensure this is happening is to have a WRITTEN daily schedule that includes meals and snack times and monitor to ensure teachers are following the scheduled meal times.
Click on the "Meal Tracker" document below to open. Save to your computer, and then consider printing. This document does not open in a new window, so you will have to click on the 'back arrow' in the upper left corner of your computer screen to go back to the tutorial. You may have to 'enable editing' once this document opens, depending on the Office version you have.
You should keep written record of the number of children that were served breakfast, lunch, dinner and snacks each day.
meal_tracker.xls | |
File Size: | 31 kb |
File Type: | xls |
Questions to consider...
Consider how you would answer these questions - use your answers to develop and implement financial practices and policies that will help support the financial health of your program.
1. Is my system to keep track of receipts/invoices working effectively and efficiently?
2. Do I have a system to keep track of unpaid tuition and unpaid bills?
3. How often do I monitor the Meal counts to ensure teachers are filling them out accurately?
1. Is my system to keep track of receipts/invoices working effectively and efficiently?
2. Do I have a system to keep track of unpaid tuition and unpaid bills?
3. How often do I monitor the Meal counts to ensure teachers are filling them out accurately?
YoungStar Requirements
Requirements for 3, 4, and 5 star programs
Under the Business and Professional Practices section of YoungStar, group centers are required to demonstrate record-keeping practices that track income and expenses including tracking meals and snacks.
Programs must be able to verify through documentation that their program is keeping track of income received and expenses paid within categories for the line item budget, through evidence of one month's worth of records/documentation.
Programs must also show that they are tracking meals and snacks. CACFP claims (last 2 months and an in-progress claim) would satisfy this requirement. Programs not on CACFP must be able to provide documented proof over the past 3 months that they are tracking the number of meals and snacks served. Documentation must include:
- Menus
- Meal/Snack components (what was actually served; which may not match menu)
- Number of children served that meal/snack
- Date meal/snack was served
- Time meal/snack was served, as noted either on a daily schedule or lesson plan
Under the Business and Professional Practices section of YoungStar, group centers are required to demonstrate record-keeping practices that track income and expenses including tracking meals and snacks.
Programs must be able to verify through documentation that their program is keeping track of income received and expenses paid within categories for the line item budget, through evidence of one month's worth of records/documentation.
Programs must also show that they are tracking meals and snacks. CACFP claims (last 2 months and an in-progress claim) would satisfy this requirement. Programs not on CACFP must be able to provide documented proof over the past 3 months that they are tracking the number of meals and snacks served. Documentation must include:
- Menus
- Meal/Snack components (what was actually served; which may not match menu)
- Number of children served that meal/snack
- Date meal/snack was served
- Time meal/snack was served, as noted either on a daily schedule or lesson plan
Disclaimer: Materials and links provided by WECA on this tutorial do not constitute legal, accounting, tax or finance advice. Participants seeking professional business advice about specific aspects of their program should consult a professional such as a lawyer, accountant, etc.