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Introduction to Food Services Martha Nehus, MSE, RD, LD Child Nutrition Coordinator Benton Public Introduction to Food Services Martha Nehus, MSE, RD, LD Child Nutrition Coordinator Benton Public Schools November 6, 2013

Topics General Regulations Covering Food Service Programs Food Service Accounting District Operated Programs vs Topics General Regulations Covering Food Service Programs Food Service Accounting District Operated Programs vs Contracted Programs Staffing, Supervision, Training

Programs Available National School Lunch Program School Breakfast Program Afterschool Snack Program Seamless Summer Programs Available National School Lunch Program School Breakfast Program Afterschool Snack Program Seamless Summer Program Special Milk Program Fresh Fruits & Vegetables Program

How it works. USDA has an Agreement with the State has an Agreement with How it works. USDA has an Agreement with the State has an Agreement with District (School Food Authority or SFA) District (SFA) administers the CN Programs

Agreement Between District and ADE agrees to provide funds to District if USDA provides Agreement Between District and ADE agrees to provide funds to District if USDA provides funds to ADE. Yearly agreement between the District and ADE. Still working on Original 2006 -07 Agreement.

For All USDA Meal Programs School District Agrees to: See 0 riginal 2006 -07 For All USDA Meal Programs School District Agrees to: See 0 riginal 2006 -07 Agreement – Green Paper 1. Comply with all of USDA Regulations 2. Maintain a nonprofit program 3. Limit cash to no more than 3 months or have a plan to spend balance on allowable costs. 4. Maintain a financial management system.

School District Agrees to: 5. Comply with USDA regulations for financial management. 6. Serve School District Agrees to: 5. Comply with USDA regulations for financial management. 6. Serve meals that meet meal pattern and nutrient requirements of students. 7. Price meals as a unit. 8. Serve free and reduced price meals to eligible students.

School District Agrees to: 9. Claim meals at the assigned rates. The person that School District Agrees to: 9. Claim meals at the assigned rates. The person that signs must confirm that claim is accurate. 10. Count meals at the point of service by eligibility category. 11. Submit claims according to regulations.

School District Agrees to: 12. Comply with: Title VI Civil Rights Act 1964 Title School District Agrees to: 12. Comply with: Title VI Civil Rights Act 1964 Title IX of Education Amendments 1972 Section 504 -Rehabilitation Act 1973 Age Discrimination Act 0 f 1975

“Updated Nondiscrimination Statement” “The U. S. Department of Agriculture prohibits discrimination against its customers, “Updated Nondiscrimination Statement” “The U. S. Department of Agriculture prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual's income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities. )

School District Agrees to: 13. Maintain records and submit reports on nondiscrimination. 14. Treat School District Agrees to: 13. Maintain records and submit reports on nondiscrimination. 14. Treat all children the same regardless of ability to pay. 15. Accept commodities.

School District Agrees to: 16. Meet state health standards. 17. Use Commodities as much School District Agrees to: 16. Meet state health standards. 17. Use Commodities as much as possible. 18. Provide facilities for storing, preparing and serving meals.

School District Agrees to: 19. Make records available for review by the state agency School District Agrees to: 19. Make records available for review by the state agency or USDA. 20. Maintain applications retrievable by school. 21. Retain records for 3 federal fiscal years and 5 state school years.

School District Agrees to: 22. Provide State with enrollment and eligibility information on October School District Agrees to: 22. Provide State with enrollment and eligibility information on October 1. 23. Maintain a drug free workplace. 24. Implement Wellness Policies of District in compliance with PL 108 -265

School District Agrees to: 25. Have a Food Safety Plan for each school kitchen School District Agrees to: 25. Have a Food Safety Plan for each school kitchen or serving site. 26. Comply with Arkansas Rules for Child Nutrition Staff Certification Requirements. (Commissioners Memo IA-05 -094) 27. Participate in the Direct Certification Process for Free Eligibles annually. 28. Meets requirements for two health department inspections for each serving site each year.

Direct Certification DHS list of families receiving SNAP benefits are matched with lists of Direct Certification DHS list of families receiving SNAP benefits are matched with lists of children in the district These children are automatically approved for free meals because their income has already been verified Districts required to make 3 matches per year

Attachments to Original and Renewal Agreements A-1 Procurement A-2 Civil Rights A-3 Wellness Policy Attachments to Original and Renewal Agreements A-1 Procurement A-2 Civil Rights A-3 Wellness Policy Checklist A-4 Food Safety Plan A-5 Health Inspection Statement

Attachments to Original and Renewal Agreements District’s choice of programs are indicated by completion Attachments to Original and Renewal Agreements District’s choice of programs are indicated by completion of: Schedule A Breakfast and Lunch Schedule B – Afterschool Snack Schedule C – Seamless Summer FFVP Separate Addendum to Agreement

District will complete for approval: Schedule A for Breakfast and/or Lunch Programs as part District will complete for approval: Schedule A for Breakfast and/or Lunch Programs as part of this CN Agreement. Schools may be added or deleted (as needed) in writing from Superintendent. District will notify CNU ADE in writing of changes in Menu Planning Option, Student and Adult Meal Prices, and Changes of Signature Authority.

Reimbursement Rates School Year Breakfast SY 2011 -12 SY 2012 -13 SY 2013 -14 Reimbursement Rates School Year Breakfast SY 2011 -12 SY 2012 -13 SY 2013 -14 Free $1. 51 $1. 55 $1. 58 Reduced $1. 21 $1. 25 $1. 28 Paid $0. 27 $0. 28 Free $2. 77 $2. 86 $2. 93 Reduced $2. 37 $2. 46 $2. 53 Paid $0. 26 $0. 27 $0. 28 Lunch

SPECIAL REIMBURSEMENT RATES PERFORMANCE BASED MEAL PATTERN REIMBURSEMENT 6 CENTS FOR LUNCH MEALS REGARDLESS SPECIAL REIMBURSEMENT RATES PERFORMANCE BASED MEAL PATTERN REIMBURSEMENT 6 CENTS FOR LUNCH MEALS REGARDLESS OF STATUS RECEIVE AS SEPARATE CHECK

SPECIAL REIMBURSEMENT RATES DISTRICT HAS TO CONTINUE TO COMPLY WITH NEW MEAL PATTERN FOR SPECIAL REIMBURSEMENT RATES DISTRICT HAS TO CONTINUE TO COMPLY WITH NEW MEAL PATTERN FOR BOTH BREAKFAST AND LUNCH RECEIVES REIMBURSEMENT UPON SUBMISSION OF A CORRECT STUDENT LUNCH REIMBURSEMENT CLAIM AUTOMATICALLY CALCULATED WHEN TOTAL STUDENT LUNCHES ADDED TO CLAIM PAYMENT SYSTEM

SPECIAL REIMBURSEMENT RATES BEGAN MENU CERTIFICATION PROCESS LAST OCTOBER BY SUBMITTING MENUS ON A SPECIAL REIMBURSEMENT RATES BEGAN MENU CERTIFICATION PROCESS LAST OCTOBER BY SUBMITTING MENUS ON A USDA WEBSITE ADDITIONAL 6 CENTS ONLY AVAILABLE FROM MONTH OF SUBMISSION ADE CNU HAD TO VERIFY 25% OF SUBMITTED MENUS WITH ON SITE VISIT

SPECIAL REIMBURSEMENT RATES: 21 ARKANSAS DISTRICTS DID NOT SUBMIT MENUS LAST YEAR FOR CERTIFICATION SPECIAL REIMBURSEMENT RATES: 21 ARKANSAS DISTRICTS DID NOT SUBMIT MENUS LAST YEAR FOR CERTIFICATION DID NOT AND WILL NOT RECEIVE THE ADDITIONAL 6 CENTS WILL BE REQUIRED TO SUBMIT THIS YEAR AND WILL BE THE FIRST SCHOOLS TO HAVE ADMINISTRATIVE REVIEW FROM ADE-CNU THIS SCHOOL YEAR

New Meal Pattern New Meal Pattern

Timeline of Changes to Child Nutrition Program 2003 Arkansas Act 1220 2007 National Institutes Timeline of Changes to Child Nutrition Program 2003 Arkansas Act 1220 2007 National Institutes of Medicine (IOM) published “Nutrition Standards for Foods in Schools” 2008 IOM held hearings to discuss standards in school meals

Timeline of Changes to Child Nutrition Program 2009 IOM made recommendations to USDA for Timeline of Changes to Child Nutrition Program 2009 IOM made recommendations to USDA for changes to lunch program 2009 Child Nutrition programs were notified of proposed changes – given opportunity for comment to USDA

Timeline of Changes to Child Nutrition Program 2010 Healthy Hunger Free Kids Act: Federal Timeline of Changes to Child Nutrition Program 2010 Healthy Hunger Free Kids Act: Federal legislation to reauthorize funding for program and set policy for Child Nutrition program meal pattern BI-PARTISAN CONGRESS PASSED IT and PRESIDENT OBAMA SIGNED IT

Timeline of Changes to Child Nutrition Program 2011 Clarification and interpretation of new rules Timeline of Changes to Child Nutrition Program 2011 Clarification and interpretation of new rules and regulations continue 2012 -13 New rules in place for lunch program Dec 2012 Flexibility in Meat/Meat Alternate and Grain Maximums for School Year 20122013

Timeline of Changes to Child Nutrition Program April 2013 Extended Flexibility in Meat/Meat Alternate Timeline of Changes to Child Nutrition Program April 2013 Extended Flexibility in Meat/Meat Alternate and Grain Maximums for School Year 2013 -2014 June 2013 Proposed Rule on Nutrition Standards for All Foods Sold in Schools July 2014 New Breakfast Pattern

New Lunch Meal Pattern More fruit ½ to 1 cup per day More vegetables New Lunch Meal Pattern More fruit ½ to 1 cup per day More vegetables and inclusion of sub-groups Dark green Red/orange Legumes Starchy Other 50% of grains must be whole grain rich until next school year when 100% must be Milk 1% white, flavored skim

New Meal Pattern Calorie limits K-5, 6 -8, 9 -12 Sodium restrictions Fat, saturated New Meal Pattern Calorie limits K-5, 6 -8, 9 -12 Sodium restrictions Fat, saturated fat, and trans fat restrictions Meat/Meat Alternates 1 – 2 oz per day

Special Reimbursement Rates for LUNCH Safety Net Reimbursement --- LUNCH ONLY School Districts with Special Reimbursement Rates for LUNCH Safety Net Reimbursement --- LUNCH ONLY School Districts with 60% Free and Reduced Participation in the previous year Districts receive additional 2 cents/student lunch Free. . . . $2. 95 Reduced Price. . . . $ 2. 55 Paid. . . . $0. 30

Special Reimbursement Rates for LUNCH Safety Net List is provided by ADE CNU with Special Reimbursement Rates for LUNCH Safety Net List is provided by ADE CNU with Commissioner’s Memo containing new Reimbursement Rates as of July 1 each year 220 School districts on list this year

USDA GUIDANCE ON PAID LUNCH EQUITY Section 205 “Equity in School Lunch Pricing” is USDA GUIDANCE ON PAID LUNCH EQUITY Section 205 “Equity in School Lunch Pricing” is a provision of the federal child nutrition reauthorization bipartisan legislation passed by Congress in 2010 which amends the Richard B. Russell National School Lunch Act. The law requires that local education agencies participating in the federal National School Lunch Program ensure that schools are providing the same level of support for lunches served to students who are not eligible for free or reduced price lunches (i. e. paid student lunches).

Paid Lunch Equity SY 2013 -14 If the SFA/LEA weighted average price charged for Paid Lunch Equity SY 2013 -14 If the SFA/LEA weighted average price charged for student lunches in the 2011 -12 school year was less than $2. 59, districts required to increase the price a minimum of 4. 93%. SFAs that choose to contribute non-Federal sources to the nonprofit school food service account in lieu of raising paid lunch prices must calculate the appropriate amount to contribute.

Paid Lunch Equity SY 2013 -14 SFAs could have chosen to split the SY Paid Lunch Equity SY 2013 -14 SFAs could have chosen to split the SY 201314 requirement by both raising paid lunch prices and contributing funds from non. Federal sources. Complete Paid Lunch Equity Tool (PLE Tool) Must submit copy of the District Calculation Results of PLE Tool with the Renewal Agreement

SPECIAL REIMBURSEMENT RATES FOR BREAKFAST Severe Need Reimbursement: BREAKFAST ONLY Individual schools with 40% SPECIAL REIMBURSEMENT RATES FOR BREAKFAST Severe Need Reimbursement: BREAKFAST ONLY Individual schools with 40% Free and Reduced Lunch Participation from second preceding year (2011 -12) receive additional $. 31 reimbursement on all free and reduced price breakfasts served during the 2013 -2014 school year.

SPECIAL REIMBURSEMENT RATES FOR BREAKFAST Free Student @ $1. 58 +. 31 = $1. SPECIAL REIMBURSEMENT RATES FOR BREAKFAST Free Student @ $1. 58 +. 31 = $1. 89 Reduced-Price Student @ $1. 28 +. 30 +. 31 student payment =$ 1. 89 Paid Student +. 28 + 0 + $1. 50 student payment* = $ 1. 78 *(Paid Student Amount is set by local school board and may be less than federal reimbursement)

Special Breakfast Options Breakfast in the Classroom Grab and go kiosks Breakfast after first Special Breakfast Options Breakfast in the Classroom Grab and go kiosks Breakfast after first period All reimbursed at same rates but districts may use non federal funds to help pay for universal breakfast in the classroom.

Special Reimbursement Rate Provision 2 : Districts or individual schools that serve high poverty Special Reimbursement Rate Provision 2 : Districts or individual schools that serve high poverty populations (80%-90% or more Free or Reduced) may serve reimbursable meals at no charge to all students. (Commissioners Memo FIN-11 -059) Base Year: Applications are turned in and eligibility is determined by usual means. All students eat free but meal counts by category are maintained.

Provision 2 For next three years, all meals are served free and only a Provision 2 For next three years, all meals are served free and only a daily aggregate count of meals is maintained. Reimbursement claim is based on % of free, reduced and paid students established in Base Year. Extension can be granted for additional 4 years if district can establish economic conditions have not changed significantly from Base Year.

Provision 2 Since no money can be collected from reduced or paid students, the Provision 2 Since no money can be collected from reduced or paid students, the district commits to make up the difference between federal reimbursement of free/reduced/paid meals and student revenues received by reduced or paid students.

Provision 2 Benefits: Provides a climate where all students are on equal status within Provision 2 Benefits: Provides a climate where all students are on equal status within cafeteria environment. Eliminates yearly distribution and evaluation of applications (except for base year)

Provision 2 Cautions: Paperwork to set it up Not all schools qualify: findings with Provision 2 Cautions: Paperwork to set it up Not all schools qualify: findings with Legislative Audit or CRE Can’t change reimbursement percentages even if population changes

Community Eligibility Option Any school with 40 percent or more “identified students” can participate Community Eligibility Option Any school with 40 percent or more “identified students” can participate in CEO Direct Certified, Migrant, Homeless, Foster and other programs not found in Arkansas Everyone in the school can receive free meals Individual schools or district wide

Afterschool Snack Program 1. Provide snacks to students that are 18 and under 2. Afterschool Snack Program 1. Provide snacks to students that are 18 and under 2. Provide regularly scheduled activities. 3. Must include education and enrichment activities. 4. Claim reimbursement for snacks served after school day.

Afterschool Snack Program School District Agrees to: 5. Charge no more than 15 cents Afterschool Snack Program School District Agrees to: 5. Charge no more than 15 cents for reduced price snack. 6. Meet snack pattern. 7. Price snack as a unit. 8. Serve free and reduced price snacks to all students that qualify. 9. Claim reimbursement at the assigned rate.

Afterschool Snack Program 10. Claim only 1 snack per child per day. 11. Review Afterschool Snack Program 10. Claim only 1 snack per child per day. 11. Review 2 times a year with the 1 st review during the first 4 weeks. 12. Claims reimbursement as required. 13. Maintain all required records.

Current After School Snack Reimbursement Rates Free: $0. 80 Reduced: $0. 40 Paid: $0. Current After School Snack Reimbursement Rates Free: $0. 80 Reduced: $0. 40 Paid: $0. 07

Afterschool Snack Area Eligible site- 50% or more of the students enrolled are eligible Afterschool Snack Area Eligible site- 50% or more of the students enrolled are eligible for free and reduced price meals. ALL SNACKS MAY BE SERVED FREE. Non Area Eligible site- less than 50% of the students enrolled are eligible for free and reduced price meals. SNACKS ARE CLAIMED BY CATEGORY of free, reduced and paid.

SEAMLESS SUMMER FEEDING District will complete for approval: Schedule C for SEAMLESS SUMMER PROGRAM SEAMLESS SUMMER FEEDING District will complete for approval: Schedule C for SEAMLESS SUMMER PROGRAM as part of this CN Agreement. Schools may be added or deleted as needed in writing from Superintendent. District will notify CNU ADE in writing of changes in Menu Planning Option, Student and Adult Meal Charges, and Changes of Signature Authority.

Seamless Summer Program See Annual Commissioner’s Memo & Comparison of ADE program to the Seamless Summer Program See Annual Commissioner’s Memo & Comparison of ADE program to the DHS program. May provide any 2 meals (breakfast, lunch or snack). May serve all free if 50% or more are eligible for free/reduced price meals.

Summer Feeding Programs FIN-12 -083 SFA’s are required to inform families of the availability Summer Feeding Programs FIN-12 -083 SFA’s are required to inform families of the availability and location of Summer Food Service Programs.

Fresh Fruits & Vegetables Program (FFVP) Goals of FFVP: Create healthier school environments by Fresh Fruits & Vegetables Program (FFVP) Goals of FFVP: Create healthier school environments by providing healthier food choices, Expand the variety of fruit and vegetables children experience Increase children’s fruit & vegetable consumption Make a difference in children’s diets to impact present and future health.

District will complete for approval: Addendum to CN Agreement for Fresh Fruits & Vegetables District will complete for approval: Addendum to CN Agreement for Fresh Fruits & Vegetables Program as part of this CN Agreement. FFVP Addendum must be completed and signed by ADE and the District prior to any activities or obligations of FFVP federal funds.

Fresh Fruits & Vegetables Program (FFVP) USDA pilot studies of FFVP indicate positive changes Fresh Fruits & Vegetables Program (FFVP) USDA pilot studies of FFVP indicate positive changes in student behavior with regard to increased student selection of fresh fruits and vegetables at home and at school, thus impacting healthy lifestyle choices.

Fresh Fruits & Vegetables Program (FFVP) Districts submit individual school grant proposals stipulating: Plan Fresh Fruits & Vegetables Program (FFVP) Districts submit individual school grant proposals stipulating: Plan of school educational and partnership activities to use of funding at $50 -$75 student/year for fresh fruit and vegetable snacks during the school day

Fresh Fruits & Vegetables Program (FFVP) Provide fresh fruits & vegetables to ALL students Fresh Fruits & Vegetables Program (FFVP) Provide fresh fruits & vegetables to ALL students in school at no charge Provide students fresh fruits & vegetables during the school day at times other than meal periods. (In classrooms, at kiosks, or during breaks during the school day. )

Fresh Fruits & Vegetables Program (FFVP) Criteria for award will be weighted to give Fresh Fruits & Vegetables Program (FFVP) Criteria for award will be weighted to give priority to schools with 50% or more Free/Reduced Eligibles Upon award of FFVP Grants Districts will amend the Agreement and Policy Statement. Fresh Fruit & Vegetable Reimbursement Claim must have invoices attached. FFVP requires ANNUAL competitive grant proposal for funding to continue.

Special Milk School District Agrees to: Make available only if other programs are not Special Milk School District Agrees to: Make available only if other programs are not available. Serve milk free to eligible students. Claim reimbursement at the assigned rates. ($0. 20)

Policy Statement Includes: P-1 Collection Procedures P-2 Packet with Application and Letters P-3 Media Policy Statement Includes: P-1 Collection Procedures P-2 Packet with Application and Letters P-3 Media Release P-4 Child Nutrition Information Contact Sheet

District agrees in the Policy Statement to: 1. Serve meals free to children who District agrees in the Policy Statement to: 1. Serve meals free to children who are eligible. 2. Serve meals at a reduced price to children who are eligible. 3. Limit reduced price to: Lunch $. 40, Breakfast $. 30 & Snack $. 15

District agrees in the Policy Statement to: 4. Ensure equal treatment of children eligible District agrees in the Policy Statement to: 4. Ensure equal treatment of children eligible for free or reduced price meals. 5. Operate program so that no child shall be discriminated against because of race, sex, color, national origin, age or disability.

District agrees in the Policy Statement to: 6. Verify applications and maintain records required. District agrees in the Policy Statement to: 6. Verify applications and maintain records required. 7. Follow appeal process. 8. Designate a determining official.

Required “Officials” 1. Determining Official 2. Confirming Official 3. Verifying Official 4. Hearing Official Required “Officials” 1. Determining Official 2. Confirming Official 3. Verifying Official 4. Hearing Official

INCOME ELIGIBILITY GUIDELINES EFFECTIVE JULY 1, 2013 - JUNE 30, 2014 Free Meals - INCOME ELIGIBILITY GUIDELINES EFFECTIVE JULY 1, 2013 - JUNE 30, 2014 Free Meals - 130% Household size Federal Poverty Guideline Annual Monthly Twice per month Every two weeks Reduced Price Meals - 185% Weekly Annual Monthly Twice per Month Every two weeks Weekly 1 11, 490 14, 937 1, 245 623 575 288 21, 257 1, 772 886 818 409 2 15, 510 20, 163 1, 681 841 776 388 28, 694 2, 392 1, 196 1, 104 552 3 19, 530 25, 389 2, 116 1, 058 977 489 36, 131 3, 011 1, 506 1, 390 695 4 23, 550 30, 615 2, 552 1, 276 1, 178 589 43, 568 3, 631 1, 816 1, 676 838 5 27, 570 35, 841 2, 987 1, 494 1, 379 690 51, 005 4, 251 2, 126 1, 962 981 6 31, 590 41, 067 3, 423 1, 712 1, 580 790 58, 442 4, 871 2, 436 2, 248 1, 124 7 35, 610 46, 293 3, 858 1, 929 1, 781 891 65, 879 5, 490 2, 745 2, 534 1, 267 8 39, 630 51, 519 4, 294 2, 147 1, 982 991 73, 316 6, 110 3, 055 2, 820 1, 410 4, 020 5, 226 436 218 201 101 7, 437 620 310 287 144 each add'l person

District agrees in the Policy Statement to: 9. Submit a public release. (This is District agrees in the Policy Statement to: 9. Submit a public release. (This is the only time that the public receives both Free & Reduced Income Scale) 10. Develop and distribute an application for free and reduced price meals and process it according to regulations. 11. Follow approved collection procedure.

On Line Applications: May NOT require on line application for free and reduced meals On Line Applications: May NOT require on line application for free and reduced meals Must still provide paper applications for free and reduced meals to all students On line applications must be approved by ADE prior to being sent out to families

District agrees in the Policy Statement to: Revise the Agreement and Policy Statement as District agrees in the Policy Statement to: Revise the Agreement and Policy Statement as needed -- keep it current as a picture of district operation. Request PRIOR APPROVAL By CNU, ADE of any changes to the CURRENT Free/Reduced Household Application form, public release, letters to households, etc. All changes and amendments to Agreement and Policy Statement Must Be Submitted for APPROVAL in Writing.

Record Keeping Requirements (Maintain all records for 5 school years) Daily record of free, Record Keeping Requirements (Maintain all records for 5 school years) Daily record of free, reduced price and paid meals by serving site. Program income Program expenditures

Record Keeping Requirements Reconcile with monthly bank statement Value of donations to program Program Record Keeping Requirements Reconcile with monthly bank statement Value of donations to program Program management records ◦ Menus and Production Records ◦ Nutritional information on all ingredients ◦ Nutritional information for pre-prepared products

Record Keeping Requirements ◦ Standardized recipes ◦ Commodity records ◦ Applications ◦ Hearings on Record Keeping Requirements ◦ Standardized recipes ◦ Commodity records ◦ Applications ◦ Hearings on eligibility ◦ Documentation of verification ◦ Documentation of student/parent involvement

Record Keeping Requirements ◦ EDIT CHECKS Edit Check 1: completed daily, tracks # of Record Keeping Requirements ◦ EDIT CHECKS Edit Check 1: completed daily, tracks # of Eligible free and reduced students at each school. Tracks all the additions and dropped students Edit Check 2: compares attendance adjusted eligibles to the number of meals claimed daily. If number of free or reduced meals claimed on a day exceeds attendance adjusted eligible number a potential problem exists. Must document reason for variance.

Record Keeping Requirements Compliance with procurement regulations On-site review of schools Civil Rights complaints Record Keeping Requirements Compliance with procurement regulations On-site review of schools Civil Rights complaints and resolutions Claim for Reimbursement Verification Summary ERATE, Legislative Audit Tracking Record of Discounts, rebates and credits received by child nutrition program in procurement process.

Financial Management Fiscal Accountability of Income and Expense Accountability of Program Reimbursement Total Program Financial Management Fiscal Accountability of Income and Expense Accountability of Program Reimbursement Total Program Accountability

Financial Management Budget Considerations Sources of Revenue Allowable Program Expenses Financial Management Budget Considerations Sources of Revenue Allowable Program Expenses

Budget Considerations Students are Customers for Healthy Food Choices (Also parents and staff) Nutrition Budget Considerations Students are Customers for Healthy Food Choices (Also parents and staff) Nutrition Standards and Meal Requirements must be in compliance Revenues are Controlled by School Boards and Federal Reimbursements

Budget Considerations Menus Drive ◦ Food Costs ◦ Labor Costs ◦ Equipment Needs and Budget Considerations Menus Drive ◦ Food Costs ◦ Labor Costs ◦ Equipment Needs and other expenses

Sources of Revenue Federal Reimbursement for student meals are set as of July 1 Sources of Revenue Federal Reimbursement for student meals are set as of July 1 each year Paid Student Meal Prices are set by the School Board (and USDA) A la Carte sales in Secondary Schools Adult Meal Sales Catering of School Functions NON-Cash Assets – USDA Commodities NSLP State Match

USDA Commodities Amount of commodity money = number of lunches served X $. 2325 USDA Commodities Amount of commodity money = number of lunches served X $. 2325 Costs $4. 09 per case to have food delivered Costs $3. 09 per case to pick up food from warehouse in Van Buren Can receive direct shipment of 250 cases of one item: delivered for free

Child Nutrition Administrative Guidance Example: Adult Meal Prices Breakfasts and lunches served to teachers, Child Nutrition Administrative Guidance Example: Adult Meal Prices Breakfasts and lunches served to teachers, parents, administrators, custodians, and other adults or non students not involved in the direct provision of school meals must be priced so that the payment is sufficient to cover the FULL COST of the meal. FNS Instruction 782 -5; 7 CFR Parts 210 and 220.

Revised Guidance on Adult Meal Pricing: ◦ Adult Lunch Charges Must be: ◦ Amount Revised Guidance on Adult Meal Pricing: ◦ Adult Lunch Charges Must be: ◦ Amount of Reimbursement for Section 4 and 11 of the National School Act PLUS (+) Amount of Per Meal Value of Commodity/Donated Foods and Bonus Foods EQUALS (=) Adult Meal Price Example: PAL Rate $ 2. 93 Safety Net $ 2. 95 + 0. 2325 Recommended Adult Charge $3. 1625 or $ 3. 1825 (Must add 6 cents if certified) $3. 2225 or $ 3. 2425 Regular Rounded to $ 3. 25 per Adult Lunch

Adult Breakfast Prices Adult meal price for School Breakfast should be at least the Adult Breakfast Prices Adult meal price for School Breakfast should be at least the amount of the free reimbursement rate for breakfast at the school -$1. 58 If severe need school: must be $1. 89

Financial Management USDA Regulations determine allowable expenditures or how the money can be spent. Financial Management USDA Regulations determine allowable expenditures or how the money can be spent. Child Nutrition non-profit food service account funds CAN ONLY be spent for Child Nutrition Expenses Child Nutrition programs must provide proof they are charging enough for alacarte items to pay for all costs associated with production and service

Commissioner’s Memo IA-04 -022 Child Nutrition Administrative Guidance Section III. Financial Management A. Claim Commissioner’s Memo IA-04 -022 Child Nutrition Administrative Guidance Section III. Financial Management A. Claim For Reimbursement B. Investing Child Nutrition Funds C. Loans to the Programs D. Revenue/Expenditure and Non-allowable Costs E. Capital Expense Exceptions F. Separation of Funds for Federal Child Nutrition Programs

Examples of Non-Allowable Expenditures Bad Debts Fines and Penalties Legislative Expense or Direction Capital Examples of Non-Allowable Expenditures Bad Debts Fines and Penalties Legislative Expense or Direction Capital Expenditures (if you can not take it to a new facility, then you can not buy it with food service funds)

Procurement Requirements Buy American Fresh Fruits & Vegetables Geographic Preference Option Farm to School Procurement Requirements Buy American Fresh Fruits & Vegetables Geographic Preference Option Farm to School Tracking Discounts, Rebates and Refunds on all procurement contracts

Buy American --- See ADE Commissioner’s Memo FIN-08 -033 Include a Buy American clause Buy American --- See ADE Commissioner’s Memo FIN-08 -033 Include a Buy American clause in all procurement documents (product specifications, bid solicitations, requests for proposals, Price Quotation Sheets, purchase orders, etc) Require suppliers to certify the origin of the product.

Buy American --- See ADE Commissioner’s Memo FIN-08 -033 Examine product packaging for identification Buy American --- See ADE Commissioner’s Memo FIN-08 -033 Examine product packaging for identification of the country of origin. Ask the supplier for specific information about the percentage of U. S. content in the food product.

Fresh Fruits & Vegetables Geographic Preference Option School Districts may have the OPTION to Fresh Fruits & Vegetables Geographic Preference Option School Districts may have the OPTION to give Geographic Preference to local farmers to purchase fresh fruits and vegetables. Section 4302 of P. L. 110 -246 amended section 9(j) of the Richard B. Russell National School Lunch Act (NSLA) requires the Secretary of Agriculture to encourage institutions operating the Child Nutrition Programs to purchase unprocessed locally grown and locally raised agricultural products.

Tracking of Discounts, Rebates & Credits Local Districts - Requires that allowable costs paid Tracking of Discounts, Rebates & Credits Local Districts - Requires that allowable costs paid from the nonprofit school food service account be net of all discounts, rebates, and applicable credits when paid. State Agencies are required to monitor local districts to ensure a system for tracking discounts, rebates and credits is in place. Legislative Audit – Compliance Issue beginning SY 07 -08 – will be checking to see what districts have been doing to track these items.

Contracts and Purchases CONTRACTS/PURCHASES : Contract Purchases for goods and services that are considered Contracts and Purchases CONTRACTS/PURCHASES : Contract Purchases for goods and services that are considered allowable costs for the program and that include rebates, discounts or applicable credits must have: 1. an audit trail (documentation) to ensure that these discounts, rebates and credits have been given to the program on invoices or bills from company

Contracts and Discounts 2. a tracking system for discounts, rebates and credits to ensure Contracts and Discounts 2. a tracking system for discounts, rebates and credits to ensure that CN payment of invoices at the time of payment are net of such rebates, discounts or credits. If the company forgets to apply applicable credits, it is the district’s responsibility to take these credits, discounts and rebates on the invoices.

What will auditors review? Does the local district have a Tracking System of Rebates, What will auditors review? Does the local district have a Tracking System of Rebates, Discounts or Credits to ensure that these are applied to Child Nutrition invoices prior to payment or at the time of payment? Has the district kept supporting documentation to show compliance with district tracking system?

Contracted Food Service Programs ADE Commissioners Memo FIN -14 -025 Registration of Food Service Contracted Food Service Programs ADE Commissioners Memo FIN -14 -025 Registration of Food Service Management Companies ADE – Commissioners Memo FIN-14 -024 Procurement of Food Service Management Company Services

Registration of Food Service Management Companies (FSMC) FSMC wishing to contract for food services Registration of Food Service Management Companies (FSMC) FSMC wishing to contract for food services with any SFA/LEA in Arkansas is required to register with the ADE CNU. Deadline September 30, 2013, 4: 30 p. m. Only registered companies allowed to respond to Request for Proposals released by LEA’s.

Procurement of Food Service Management Company Services SFA/LEA interested in procuring the services of Procurement of Food Service Management Company Services SFA/LEA interested in procuring the services of a FSMC must notify ADE of the intent. (Deadline September 30, 2013) FSMC employs food service workers instead of the district and provides reimbursable meal services to students. School District must supervise contract to ensure all rules/regulations being followed.

Food Service Management Companies The Agreement and Policy Statement requirements and responsibilities of the Food Service Management Companies The Agreement and Policy Statement requirements and responsibilities of the district cannot be transferred to the food service management company. Fiscal responsibilities and accountability for operation of the federal child nutrition program CANNOT be delegated by the district to the FSMC.

Supervision Act 1220 of 2003 Requires: 1. Certification for Directors and Managers of Child Supervision Act 1220 of 2003 Requires: 1. Certification for Directors and Managers of Child Nutrition Programs 2. Cannot pay salary and benefits for uncertified directors and managers out of foodservice funds.

Supervision 3. Requires 10 hours of in-service training each year for all employees. Administrative Supervision 3. Requires 10 hours of in-service training each year for all employees. Administrative Reviewers will ask for documentation of this. 4. District level: Written evaluation of all staff each year. 5. Tier II training for Director.

Supervision TIME CERTIFICATION FOR ALL EMPLOYEES IN FEDERALLY PAID PROGRAMS. Documentation for Legislative Auditors Supervision TIME CERTIFICATION FOR ALL EMPLOYEES IN FEDERALLY PAID PROGRAMS. Documentation for Legislative Auditors and Administrative Reviewers

CONCLUSION Time of great change and challenge for the Child Nutrition Programs. Questions: CONCLUSION Time of great change and challenge for the Child Nutrition Programs. Questions: