5.3 Lesson 5 Quiz

Select the TRUE statement:

If there is a question regarding the allowability a cost in the CACFP, it is best to:

After identifying food program income and allowable food program expenses, an institution can then determine if it is running a nonprofit food service program.

Reimbursement received from the CACFP can be used for which of the following?

Regardless of an institution’s IRS tax status as a nonprofit or charity, for-profit, or public entity, all institutions must maintain a non-profit food service program.

Managing expenses, tracking revenue and expenses, and overseeing the processes and documentation are principles of

An institution uses petty cash available for less expensive purchases. Institutions may set their own threshold for using petty cash and do not need to keep receipts when the purchases are within the institution’s threshold.

Institutions have authorization to purchase anything in the CHAAMPS budget, regardless of whether it’s been approved by VDH.

Once the budget is approved in CHAAMPS by VDH, the institution can change the budget how many times during the fiscal year?

If a child care center rents a space for $100,000.00 per year and only uses 25% of that space for CACFP purposes, what amount should be allocated in the annual CHAAMPS budget?

There are two types of allowable expenses in the CACFP – operating and administrative. The following items are considered operating expenses.

When completing the budget on CHAAMPS, the accountant forgot to include $1,500 to purchase a larger microwave oven. What should the institution do to address this problem?

Which of the following examples of income does the institution have to credit back into the CACFP fund balance?

If a cost is allowable according to the Financial Management Instruction, it may be disallowed if

Cost allocation is necessary when a cost includes more than one program – like printer costs or cleaning services. Which of the following are false?