financial management information system - National Food Service ...

B UDGETING S ECTION 5Corrective Action and Budget AdjustmentThe school foodservice administrator must stay in control of the budget and adjust as necessary. The end of the school yearis too late to evaluate the budget and the budgeting process. It is much better to discover early on that a possible losssituation is occurring so that an immediate remedy can be sought. When the budget analysis indicates insufficiencies,school foodservice administrators should carefully examine both the revenue and expenditure sides of the budget.Possible questions to ask when considering whether or not to increase revenue are:• If we increase meal prices, will the benefits offset the possible decline in participation?• Can we add catering activities to our operation?• What about a marketing plan to increase participation?• Are the customers satisfied? Have we asked them what they would like?• Are teachers and administrators supportive?Possible questions to ask when considering the expenditure side of the budget are:• Have we analyzed program costs according to categories of expenditures?• How do program costs in the schools foodservice operation compare to other school programs or industry standards?• Have we involved school foodservice staff in the financial management of the operation? Do they have anunderstanding of the importance of cost controls to the success of the operation?• If there is a need to reduce costs, are the reductions being made in activities that have less value to the customers?The budget reports generated from a well-defined financial management information system can provide vital informationto the school foodservice administrator. The reports can tell how the operation is performing, help administrators analyzeexpenditures and revenues, and provide a wealth of information for better decision-making. All school foodserviceadministrators must learn to use financial information to manage and improve their programs. Good administrators knowthis and use the budget to achieve the maximum for their program.83N ATIONAL F OOD S ERVICE M ANAGEMENT I NSTITUTE