Martha Nehus, MSE, RD, LDChild Nutrition CoordinatorBenton Public SchoolsNovember 6, 2013

General Regulations Covering Food Service Programs

Food Service Accounting

District Operated Programs vs Contracted Programs

Staffing, Supervision, Training

National School Lunch Program

School Breakfast Program

Afterschool Snack Program

Seamless Summer Program

Special Milk Program

Fresh Fruits & Vegetables Program

USDA has an Agreement with the State

State has an Agreement with District(School Food Authority or SFA)

District (SFA) administers the CN Programs

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.

See 0riginal 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.

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.

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.

12. Comply with:

Title VI Civil Rights Act 1964 Title

Title IX of Education Amendments 1972

Section 504-Rehabilitation Act 1973

Age Discrimination Act 0f 1975

“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.)

13. Maintain records and submit reports on nondiscrimination.

14. Treat all children the same regardless of ability to pay.

15. Accept commodities.

16. Meet state health standards.

17. Use Commodities as much as possible.

18. Provide facilities for storing, preparing and serving meals.

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.

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

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.

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

A-1 Procurement

A-2 Civil Rights

A-3 Wellness Policy Checklist

A-4 Food Safety Plan

A-5 Health Inspection Statement

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

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.

School Year

SY 2011-12 SY 2012-13

SY 2013-14

Breakfast

Free $1.51 $1.55 $1.58

Reduced $1.21 $1.25 $1.28

Paid $0.27 $.27 $0.28

Lunch

Free $2.77 $2.86 $2.93

Reduced $2.37 $2.46 $2.53

Paid $0.26 $0.27 $0.28

PERFORMANCE BASED MEAL PATTERN REIMBURSEMENT

6 CENTS FOR LUNCH MEALS REGARDLESS OF STATUS

RECEIVE AS SEPARATE CHECK

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

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

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

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

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

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

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 2012-2013

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

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

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

Safety Net Reimbursement --- LUNCH ONLY School Districts with 60% Free and Reduced Participation in the previous year

Districts receive additional 2 cents/student lunchFree.................................. $2.95Reduced Price ................. $ 2.55Paid.................................. $0.30

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

Section 205 “Equity in School Lunch Pricing” is a provision of the federal child nutrition re-authorization 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).

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.

SFAs could have chosen to split the SY 2013-14 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

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.

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)

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.

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.

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.

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.

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)

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

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

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.

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.

10. Claim only 1 snack per child per day.

11. Review 2 times a year with the 1st review during the first 4 weeks.

12. Claims reimbursement as required.

13. Maintain all required records.

Free: $0.80Reduced: $0.40Paid: $0.07

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.

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.

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.

FIN-12-083

SFA’s are required to inform families of the availability and location of Summer Food Service Programs.

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.

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.

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.

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

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.)

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.

Make available only if other programs are not available.

Serve milk free to eligible students.

Claim reimbursement at the assigned rates. ($0.20)

P-1 Collection Procedures

P-2 Packet with Application and Letters

P-3 Media Release

P-4 Child Nutrition Information Contact Sheet

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

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.

6. Verify applications and maintain records required.

7. Follow appeal process.

8. Designate a determining official.

1. Determining Official

2. Confirming Official

3. Verifying Official

4. Hearing Official

INCOME ELIGIBILITY GUIDELINES EFFECTIVE JULY 1, 2013 - JUNE 30, 2014

Free Meals - 130% Reduced Price Meals - 185%

House-hold size

Federal Poverty Guideline Annual Monthly

Twice per month

Every two weeks 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

each add'l person 4,020 5,226 436 218 201 101 7,437 620 310 287 144

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.

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

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.

(Maintain all records for 5 school years)

Daily record of free, reduced price and paid meals by serving site.

Program income

Program expenditures

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

◦ Standardized recipes

◦ Commodity records

◦ Applications

◦ Hearings on eligibility

◦ Documentation of verification

◦ Documentation of student/parent involvement

◦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.

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.

Fiscal Accountability

Accountability of Income and Expense

Accountability of Program

Reimbursement Total Program Accountability

Budget Considerations

Sources of Revenue

Allowable Program Expenses

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

Menus Drive

◦ Food Costs

◦ Labor Costs

◦ Equipment Needs and other expenses

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

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

CHILD NUTRITION UNIT ARKANSAS DEPARTMENT OF EDUCATION

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 Instruction782-5; 7CFR Parts 210 and 220.

◦ 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: Regular $ 2.93 Safety Net $ 2.95 PAL Rate + 0.2325 + 0.2325

Recommended Adult Charge $3.1625 or $ 3.1825 (Must add 6 cents if certified) $3.2225 or $ 3.2425

Rounded to $ 3.25 per Adult Lunch

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

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 ala-carte items to pay for all costs associated with production and service

Section III.    Financial Management A.    Claim For ReimbursementB.    Investing Child Nutrition FundsC.    Loans to the ProgramsD.    Revenue/Expenditure and

Non-allowable CostsE.    Capital Expense ExceptionsF.    Separation of Funds for Federal Child

Nutrition Programs

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)

Buy American

Fresh Fruits & Vegetables Geographic Preference Option

Farm to School

Tracking Discounts, Rebates and Refunds on all procurement contracts

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.

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.

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.

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/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

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.

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?

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

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.

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.

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.

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.

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.

TIME CERTIFICATION FOR ALL EMPLOYEES IN FEDERALLY PAID PROGRAMS.

Documentation for Legislative Auditors and Administrative Reviewers

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

Questions: