Food-Service-Manual-for-Health-Care-Institutions

performance report, which is part of the institution’s overall financial control system. In some
institutions, the monthly performance report is prepared by the food service director. In others,
the actual monthly performance report is prepared by the accounting department. In the latter
case, however, the accuracy of the report still must be carefully checked by the food service
director. The following records are needed for completing the monthly performance report:
• Records of meals served to patients and nonpatients, including the daily census of meals
served
• Records of purchasing, receiving, inventory, and issuance activities, including the
monthly raw food costs
• Production forecasts and records
• Labor records, including monthly labor costs
• Records of overhead costs, supply costs, and miscellaneous costs
• Records of revenues from patient and nonpatient sources
Daily Census of Meals Served
All health care institutions should keep a daily census (or count) of the number of meals served
to patients and nonpatients (Exhibit 11.4). The nonpatient meal count can be broken down into
subcounts, such as meals for staff members, meals for employees, meals for special functions,
catered meals, and so forth. The most accurate method of determining the number of patient
meals served is to count the number of trays actually prepared for each meal and to keep a
record of the total number counted for each day. A disadvantage of this method is that it can be
time-consuming. An alternative method that can be used in hospitals is to survey the number of
trays served over a week or so to determine the average number of trays served per day. This
average can then be multiplied by the midnight census of inpatients (less newborns) to find the
total number of patient meals served for a particular day. The averaging method is not accurate
enough to be used for cost allocation. However, it may be used for budget preparation.
The methods used for determining the number of nonpatient meals served each day vary
from institution to institution. The method used depends on whether the institution follows a
cash-payment system or whether employees purchase monthly meal tickets. Stipend meals (meals
provided free of charge to special groups—for example, interns) are also taken into account. The
method most often used for determining the number of meals served in a cash-payment cafeteria
requires calculating the average selling price for a full noon meal (including meat, potato, vegetable,
salad, beverage, and dessert). When a selective menu is offered, the average price of each
meal component (for example, the entrée, vegetable, salad, or dessert) should be used in the calculation
of the average number of meals. Once the average selling price of a meal has been determined,
the total cash sales can be divided by the average price per meal to determine the daily
meal equivalent, or the average number of meals served per day for record-keeping purposes.
Monthly Raw Food Costs
Control Function and Financial Management
Purchasing, receiving, inventory, and issuance records are used to determine monthly raw food
costs. The data needed for these records are the total cost of the foods purchased during the
month and the value of physical inventories at the beginning and end of the month. The total
cost of purchases for the month can be calculated by adding up all of the purchasing invoices
paid to suppliers during the month (Figure 11.4).
The physical inventory figures are used to determine the amount of food actually consumed
during the month (versus the amount purchased during the month). The following steps
represent one method of calculating the total cost of food used during the month:
1. Start with the value of the beginning inventory (including food in storage and food
being used in the kitchen).
2. Add the total value of purchases made during the month (the total of invoices paid
during the month).
329