financial management information system - National Food Service ...

S ECTION 2BASIC F INANCIAL S TATEMENTSExpendituresThe following definitions provide a general description of the expenditures found on the Statement of Revenue andExpenditures. Refer to the supplemental schedules in Section 3 for a more detailed description of expenditures. Theschedules also provide a guide for classifying sources of expenditures within each category.Salaries and WagesThis expense item includes regular pay, extra time, overtime pay, vacation pay, severance pay, holiday pay, substitute pay,administrative salaries, and other salaries and wages paid from school foodservice funds. Supporting worksheets andschedules may be prepared.Employee BenefitsThis expense item includes social security, all insurance applicable to employees, workers’ compensation, retirementcontributions paid by the school foodservice program, and unemployment insurance. This item may, according to schoolboard policy, include employee meals, job-related medical expenditures not covered by insurance, and other employeebenefits such as uniforms paid for from school foodservice funds.Purchased Food ProductsThis includes the amount expended for the purchase of all food sold in the school foodservice operation, charges forprocessing commodities from bulk or raw form to ready-to-use end products, and the cost of commodity delivery to schooldistricts.Donated Commodities UsedThis expense item covers the value of commodities used, including food purchased with a commodity letter of credit, andcash in lieu of commodities. It should be noted that under the single inventory concept, school districts are no longerrequired to inventory donated commodities separately from purchased food.Food Production SuppliesThis includes expenses for paper or disposable supplies used only for production and service of food at the school site. Thiscategory may be required to be identified separately for indirect cost purposes.General Operating SuppliesThese items include the cost of general supplies necessary for the operation of the school foodservice program, includingoffice supplies and dish machine supplies.Purchased ServicesExpenses include fees expended for professional and technical services, including accounting, legal advice, and training.Architects, consultants, computer specialists, food service management fees, and other similar services are also included.Property OperationThis category covers amounts expended for property service such as maintenance and upkeep of property. It includes energycosts, payments to other agencies for repairs and maintenance of foodservice equipment, and repair or upkeep of cafeteriafacilities.N ATIONAL F OOD S ERVICE M ANAGEMENT I NSTITUTE 18