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• Up to date product information • Replaces traditional “sometimes outdated” spreadsheets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