6.1 Introduction

By the end of this lesson, you will be able to…

• Understand the key elements of an effective financial management system.
• Identify expenditures that are claimed as operating costs.
• Identify expenditures that are claimed as administrative costs.
• Recognize the limits and conditions that impact allowable costs.
• Understand how claims are compiled, submitted and paid.
• Clarify what is meant by “nonprofit food service program”.
• Understand how a nonprofit food service program is determined.
• Identify the records required to document the nonprofit food service program.
• Understand what to expect if the nonprofit food service program can’t be documented.