Effective Use of USDA Foods Entitlements and Banks

Sean Leer, Vice President, Gold Star Foods, Inc Barry Sackin, President, B. Sackin & Associates

Myron Shelton, Technology Services Director, RealTime Solutions

July 15, 2014 2:15 PM

Learning Objectives 1. Attendees will gain knowledge and understanding of the value of

their USDA Foods Entitlement and how to maximize it.

2. Attendees will look at online tools that can help plan and monitor utilization of USDA Foods entitlements.

3. Attendees will understand the importance of continual monitoring of inventory balances at further processors of USDA Foods.

USDA Foods Entitlement

• Performance-based payment • SY 2014 = 23.25¢ per lunch served • Planned Assistance Level (PAL)

• Rate X lunches served

In the Bank

• PAL is a “bank” account used to “buy” food items offered by USDA Foods program

What Does a Commodity Cost?

Fair Market Value + state fees + storage and distribution = true cost

Spend Your Money Wisely

• Commodities are NOT free • Entitlement $ are revenue • Calculate best use

When Do You Receive the Value of Your Entitlement? • Diverting to a processor is only the first step • No value until ordered, received and used • Leaving commodities in the bank LOSES revenue

Commodity Management

Tools to Help

• Internet tools track your commodities • Processors offer tools to maximize the value • Let’s explore some examples

Online Menu Planning Commodity Diversion

Planner

NOTE: This presentation contains CONFIDENTIAL information for RealTime Solutions use only. © 2014 Real Cool Synchrony, Inc.

• Powerful, interactive web-based tool for USDA Foods order planning and menu management

• Streamlines planning process by collecting all data in one central location

• Up to date product information • Replaces traditional “sometimes outdated” spreadsheets

or forms • View all historical data (plans)

• Pull in calculated data from a previous year for planning in current year

Menu Planning Tool/ Commodity Diversion Planner Overview

• Facilitates Communication for: • You, the School District • Brokers • State Agencies • Commercial Distributors • Multi-agency Groups

• Foodservice Management Companies • GPOs • Co-ops

• Manufacturer Contacts

Menu Planning Tool/ Commodity Diversion Planner Overview

Commodity Diversion Planner Overview

Calculating Your Estimated LBS

Getting Started: Enter projected carry over you may have at the end of the school year

OR Enter diversion amounts if you know them

Adding Products

Select products you plan to menu from dropdown list of all products available

Indicate Servings/Meal and Menus/Year or Total Cases

Enter how many meals you serve and how many times you plan to menu the product OR Enter the total number of cases you will use during the year

Indicate Servings/Meal and Menus/Year or Total Cases

Add to Plan

Commodity Worksheets

Monthly Planning

Provide monthly detail of products you intend to serve by indicating the number of cases planned each month; the tool will alert you when you have planned too much or too little

Submitting Plan

As part of the submission process, you will be prompted to email your submitted plan to others, like your distributor, individuals with district, etc.

Submitting Plan

After submitting a plan, you will receive email verification of the submitted plan’s details

Product Guides

View your Plans

There is a historical account of all plans previously submitted available so you can click on a particular plan for reference

Quarterly E-Newsletter Quarterly E-communication updates key Stakeholders on the following:

• Timely updates on commodity balance and usage

• Commodity Diversion Planners actual purchases versus planned purchases

Maximizing USDA Entitlement Distributor

Realizing the value of Commodities

• What is the process? • What are the variables? • How does it happen?

Watch the dollars…

Pass Thru Value

• Fee for Service • Modified Fee for Service • Automated Rebate • Net Off Invoice—Indirect Discount

The Process….

School District

Distributor

Receive Order From Customer

Information Correct? Yes No

Yes No

USDA Foods Internal Process Guide

CO-OP

School 2 School 3 School 4 School 1

COOP Members

K12 Food Solutions

Processor Link

Direct Processors

COOP Process—Single Bank

• COOP house Entitlement Balances for Super CO-OP Members • Wait and receive sales transaction from various commodity processors • Make adjustments based from sales and other processes such as

allocations and rewards

COOP

• Download COOP’s balance daily through FTP transaction. • Compare COOP’s balance against Gold Star Foods’ balance. • Perform adjustments on COOP members entitlement dollar balances. • Sends sales transaction to various commodity processors (K12, Processor

Link, Rose and Shore)

Gold Star Foods

COOP – GSF Daily Reconcile Procedure

Entitlement Allocation Calculation

COMMODITY ITEM

RAW ITEM

Blueberry Muffin

POUND PER CASE (PPC)

Blueberries 1.25

CASE ORDERED

2

Eggs 0.87

$2.4923

SCOOP $ PER CASE

PASS THRU VALUE (PTV) PPC * PTV

$1.4204 $1.7755

$0.8245 $0.7173

TOTAL SCOOP $ PER CASE $2.4923

TOTAL SCOOP $ SPENT PER ITEM

$4.9846

Evaluate this session online.

Visit onthego.schoolnutrition.org on your cell phone’s browser.

Click the “Evaluate Your Sessions” link.

THANK YOU!

37