PAID LUNCH EQUITY & REVENUE FROM NON- FEDERAL SOURCES & - - PowerPoint PPT Presentation

PAID LUNCH EQUITY & REVENUE FROM NON- FEDERAL SOURCES & NON-PROGRAM FOODS SY 2017-2018

Alabama Department of Education

Agenda

• Pai

Paid L d Lun unch h Equi uity ty (P (PLE) ) Over ervie iew

• SY 2017-18

8 PL PLE Requir equiremen ements ts

• Non

Non-Fed edera eral l Sour urce ces s

• Non

Non-Program

• gram Food

d Reven enue e Over ervie iew w

Paid Lunch Equity Provision

■ Intent nt – Ensure ure th that t suf ufficient cient fun unds ds are pro rovided vided to th the nonpr prof

• fit

it food d servic vice e accou

• unt

nt for paid d lunc nches es. – For SF SFAs to pro rovi vide de th the same level el of suppor

• rt

t for lunc nches es served ed to stu tudents ents who are not

• t eligi

gible le for free e or reduced duced price ice lunc nches. es. Why is this is Provisi vision

• n impor
• rtant

tant? Avera rage ge prices ces charge ged for paid lun unches es are less s than n the cost t

• f produ

ducin cing g those

• se lunches

es and these ese federal eral funds inten ended ed for free e and reduced ed price e lunches hes are used to help suppor

• rt

t the differe erence nce bet betwee een n the paid d lun unch costs ts and nd what t the school

• l

receiv ives es for it. ■ *Req equires uires annual l evaluation uation of paid lunch h prices es

HHFKA directs SFAs to:

1.

• 1. Compar

mpare e the e aver erage ge pr pric ice e charg rged ed for pa paid id lunche hes s to the e di differ erenc ence e bet etwee een the e hig igher er Fed eder eral rei eimbur ursemen sement t pr provid ided ed for r free ee lunche hes s and d the e lower er Fed eder eral Rei eimbur bursemen ement t for r pa paid id l lunche hes. s. 2.

• 2. If the a

e aver erage ge pa paid id l lunch h pr pric ice e is is l les ess than the e di differ erenc ence, e, an S SFA must t ei either er gr gradu dually ly adj djust t aver erag age e pr pric ices es or pr provid ide e no non-Fed eder eral al fun undi ding ng to cover er the e di differ erenc ence. e.

Paid Lunch Equity

School food authorities (SFAs) calculate weighted average for paid lunches and compare to the difference between free and paid reimbursement rates.

Wei eigh ghted ed Aver erage ge Pr Pric ice $2.25

Reimbur imbursement sement Rates es Free $3.16 Pa Paid

• .30

$2.86

COMPARE ARE

Paid Lunch Equity SY 2017-18

If SFA’s average price for paid lunches is $2 $2.86 86 or

• r mor
• re in SY

2016-17, it will be in compliance in SY 2017-18

Paid Lunch Equity SY 2017-18

If SFA’s average paid lunch price is le less ss tha han $2 $2.86 86, revenue must be increased by 2% plus 2.64%= (4.64%)

Paid Lunch Equity

If SFAs As weight hted ed average age price e for paid meals ls is less s than n this is differenc erence, e, revenu nue e must st be incre reased ased by either: ther: – Increas creasing ing average rage price ce charg rged ed for paid id meals OR OR – Add dding ing non-Feder ederal al funds ds to th the food

• d servic

vice e accou

• unt

nt OR OR – Sp Split t calculation culation (In Incre crease se price ice for paid d meals s and d add d non-Feder ederal al Funds ds to food d service vice accoun unt) t)

Paid Lunch Equity In any year, the new average price may:

Be rounde ded d down n to the nearest st 5 cents.

Be limit mited ed to a maxim ximum um required uired increase ease of 10 cents ts.

Paid Lunch Equity

SFAs have flexibility to determine how they distribute average price increase among their schools to reach new average price.

Ori riginal inal Pri rices es Elemen enta tary $2.00 Middle $2.00 High $2.00

New Adjus usted ed Prices es El Elemen mentar tary $2.00 00 Middle dle $2.25 25 High $2.50 50

Paid Lunch Equity

■ SFAs may increase their average paid meal prices more than required amount. ■ A “credit” will be carried forward to the next school year for any amount of increase over required amount.

Pai aid d Lun unch ch Eq Equity uity SY 20 Y 2017-18 18

■ If paid student dent lunch pric ice e is adjust usted ed, , the follo lowing wing paid lun unch h prices es must ust also so be be adjust usted: ed: – Sch School

• l Employee

ee – Adult ult Visitor

• r

– Child ld Visitor

• r

Formul rmula

Pai Paid Student udent Lun unch ch Price + Pai Paid Reimb mbur ursem ement nt Rate e

+

Value ue of USDA Dona nated ed Foods

• ods -

Comm mmod

• diti

ties es

=

Minimum mum Price e for Adul ult Lun unch ch

Paid Lunch Equity SY 2017-18 Adult pricing:

FOR EXAMPLE: SFA raises paid lunch prices to $2.25

$2.25 +$.36 + $.2300 = $2.84

If an SFA is Safety Net:

$2.25 + $.38 + $.2300 = $2.86

Pai aid d Lun unch ch Eq Equity uity SY 20 Y 2017-18 18 Adu dult lt Pr Pricing: icing:

■ If th the e SFA A is a no a non-pricin pricing g or CEP EP school chool district, trict, th then en th the ad adult lt me meal al price ce is ad adjust sted, ed, by th the e follo llowing wing formu mula: la:

Formula rmula

Free ee Reimb mbur ursem ement nt Rate e

+

Value ue of USDA Dona nated ed Comm mmod

• diti

ties es = Minimum mum Price e for Adul ult Lun unch ch

Paid Lunch Equity SY 2017-18 Adult pricing:

For Example: Calculation For Non-pricing or CEP school districts

$3.22 + $.2300 = $3.45

If the SFA is Safety Net: $3.24 + $.2300 = $3.47

Paid Lunch Equity SY 2017-18

Reven enue ue may y be incre reased ased (4 .64%) ) by: – Increas creasing ing average rage price ce charg rged ed for paid id meals OR OR – Add dding ing non-Feder ederal al funds ds to th the food

• d servic

vice e accou

• unt

nt OR OR – Sp Split t calculat culation ion (In Incr crea ease se price ice for paid d me meals s and d add d non-Federa ederal l Funds ds to food d servi vice ce accou

• unt)

nt)

No Non-Fede ederal ral Fun unding ing Sour urces ces

Any contribution that is for the direct support

• f paid lunches can be

used as revenue.

Allo lowable able Non-Federal ederal Fun unding ding Sour urces ces

Contributions can include:

• 1. Non-Federal Per-lunch

reimbursements for paid lunches provided by state or local governments

• 2. Funds provided by
• rganizations: PTO/PTA or

community groups to support paid lunches

• 3. Direct payments made from

school districts funds to support the lunch service.

• 4. Any portion of state revenue

matching funds that exceed the minimum requirement provided for paid lunches.

Una Unall llowable ble Non Non-Fed eder eral al Fu Fund nding ing Sou Source ces

1.

• 1. Fede

ederal al sour sources ces of

• f revenu

enue 2.

• 2. Revenue fr

from m foods so s sold ld in in comp mpetition tition wi with th lun lunches s

• r
• r wi

with th Br Brea eakf kfast ast –A A la la ca carte te sales sales 3.

• 3. In-kind contributions:

Charging for items previously provided at no cost such as: ■ Janitorial services ■ Office supplies

• 4. Any in-kind contributions

converted to direct cash expenditures.

Unallowable Non-Federal Funding Sources

■ Any payments, including additional per-meal reimbursements, provided specifically: – For support of programs other than the School Lunch Program- Breakfast Program or other Child Nutrition Program – To support free and reduced price meals

SY 17-18 Paid Lunch Equity Tool

Tab b 2: Un Unround

• unded

ed Req equirement uirement Fi Finder nder

Tab 2: Un Unround

• unded

ed Req equirement uirement Fi Finder nder

SY 2016-2017 Report

SY 2016-2017 Report

Tab ab 8: Oc October ber 2010 0 Pai Paid Lunch ch Pr Price ce

Tab ab 8: Oc October ber 2010 0 Pai Paid Lunch ch Pr Price ce

Example – SY 2010-2011 Weighted Average Price

Tab 2: Un Unrounded

• unded Requ

equire irement ment Fi Find nder er

Tab 2: Un Unrounded

• unded Requ

equire irement ment Fi Find nder er

Tab 3: SY 17-18 Price Calculator

Tab 3: SY 17-18 Price Calculator Price increase for SY 17-18

Tab 3: SY 17-18 Price Calculator Price Estimator

No No Pr Price ce Increase crease for SY Y 17-18 18

Tab 2: Unr Unrou

• unde

nded d Requirem uirement nt Finder er Tab 3: Pric ice e Calcu culat lator

• r

Tab 3: SY 17-18 Price Calculator No Pric ice e Increase ease for SY 17 17-18 18

Tab b 4: No Non-Fede ederal al Contr

• ntribu

ibution tion Calcula lculator

• r

Tab b 4:Non Non-Fede ederal al Contrib

• ntribution

ution Cal alculat culator

• r

Tab b 5: Spli lit t Price ce & No Non-Federal deral Cal alculat culator

• r

Tab ab 5: Spli lit t Pr Price ce & No Non-Federal deral Cal alculat culator

• r

Tab ab 6: SY 2017-20 2018 8 Wei eigh ghted ed Aver erag age e Pr Pric icin ing g Rep eport

Tab ab 6: SY 2017-20 2018 8 Wei eigh ghted ed Aver erag age e Pr Pric icin ing g Rep eport

Pai aid d Lun unch ch Eq Equity uity SY Y 20 2017-18 18

SFAs As ca can n re reques uest t an an exem empti ption

• n from
• m the

e pai aid d lu lunch h equity ity re requir irement ement if the e SFA:

■ Has been certified as meeting the meal pattern – 6 cent certification. ■ Can demonstrate that the required increase to paid lunch prices or revenue contributions would cause the SFA to exceed the 3-month operating balance limit.

PLE Exemption Request Questionnaire: Factors for Consideration

■ Meal Standards ■ Competitive Foods/Smart Snacks ■ Administrative Reviews ■ Meal Service and Participation ■ Resource Management ■ Professional Support ■ Marketing ■ Cafeteria & Kitchen Equipment ■ Free & Reduced Price Eligibility Determinations

Doc

• cuments

uments req equired uired for

• r PLE

E Ex Exem emption ption:

1.

• 1. Lett

etter er Requesti uesting ng Wai aiver er

• 2. Fina

nancial ncial Statement ement or Trial al Bal alan ance ce Rep epor

• rt
• 3. PL

PLE E Tool

• l
• 4. Ex

Exemption ption Request uest Qu Questionnai stionnaire re

Reporting Paid Lunch Prices

■ SFAs must report to the SA the most frequently charged paid meal price for: – Elementary – Middle – High ■ State agencies submit SFA data to FNS

Revenue enue fr from m No Non-Pr Progra

• gram

m Food

** * Inten ent: To

• ensure th

that t revenues s from

• m th

the sale le of

• f non
• n-

prog

• gram

am foo

• ods

ds generat ate at t le least t th the same me prop

• por
• rti

tion

• n of
• f SFA

A revenues s as th they co contr trib ibute to

• SFA

A foo

• od cos

d costs ts.

Non-pr progr

• gram

am Food Costs sts Non-pr progr

• gram

am Food Reven enue

Reven enue ue from

• m Non
• n-Pr

Program

• gram Foo
• od

SFA’s are required to ensure:

■ All revenue from the sale of non-program foods accrues to the non-profit school food service account ■ Revenue available to support the production of reimbursable school meals does not subsidize the sale of non-program foods.

Reven enue ue from

• m Non
• n-Pr

Program

• gram Foo
• od

A non-program food is a food sold in a participating school other than a reimbursable meal and is purchased using funds from the school food service account.

No Non-Pr Program

• gram Food

d Ex Exam amples ples

■ A-la la-ca carte e it item ems sold d in in c competi petiti tion

• n wit

ith schoo

• ol mea

eals ■ Adu dults ts mea eals

• Item

ems s pu purcha hased ed for r cater erin ing g and v d ven ende ded d mea eals

• Item

ems s pu purcha hased ed for r fund d rais iser ers, , ven endi ding g machi hines, es, schoo

• ol stores

es

No Non-Pr Program

• gram Food

% of non-program food revenue to total revenue must be ≥ % non program food

• d cost

t to tot

• tal

l food

• d cost

Non

• n Progr

gram am Foo

• od

d Reven enue ue ≥ Non Program gram Foo

• od

d Cost Total tal Program ram Revenue enue Tot

• tal

al Food

• od Cost

st Com

• mpar

aris ison

• n

■ Reven enue e Ratio

• > Food
• od Cost

st Ratio

No Non-Pr Program

• gram Food

d Revenue enue

SFA’s are required to determine if the percent of total revenue that is generated from their non-program food sales is equal to or greater than the percent of total food costs that are attributable to the SFA’s purchase of non-program foods. For example: If the costs of non-program food are 25% of the SFA’s total food costs, then the amount of revenue generated from the sale of these non-program foods must be at least 25% of the total revenue in the school food service account. Please note: This means that if an SFA is able to show that the percent of non-program food costs is less than the percent of non- program revenues, the SFA generated enough revenue to cover all reported costs associated with non-program foods.

Revenue enue fr from m No Non-Pr Progra

• gram

m Food

Step eps to imp mple leme ment nt this s requi uirem remen ent: t:  Det etermin ermine e total

• tal food
• d costs

ts for r ent ntire ire schoo chool year  Identify tify the pe perce centage ntage of total

• tal food
• d costs

ts that is attributable ributable to no non-progr

• gram food
• ds

 Estab tabli lish sh a revenue enue targe get  Price ice no non-progra gram m food

• d items

s to ens nsure ure revenue enue target rget will be met et  Tra rack no non-program gram food

• od revenu

nues s separ parat ately ely from rom all ot

• ther

her revenue enue items

SFA’s must collect the following data:

■ For non-program food revenue, the dollar amount of non-program food sales. ■ For total revenue, the dollar amount of program and non-program food sales. ■ For non-program food cost data, include:

• An itemization of all non-program foods to be offered during the

reference period.

• The per item/serving cost of each non-program food, including

food sold only as non-program food, food sold as program and non- program food.

• The number of servings/items sold.

 For total food cost data, include all non-program food cost data and program food cost data.

Information Needed:

1. 1. Prior fiscal year’s Trial Balance Report for year end printed from Mac Al Aleer er (Nextge gen). n). 2. 2. Prior r fiscal al year r Balanc nce Shee eet t Repor

• rt

t for year ar end d printed d from m Mac Al Aleer er (Nextge gen) n). 3. 3. Tot

• tal

al numbe umber r of Breakf akfast t se served ed for the Fisc scal l year ar. 4. 4. Tot

• tal

al num umbe ber r of Lun unch ches es served ed for the e Fisca cal l year ar. 5. 5. Tot

• tal

al num umbe ber r of Snack cks s served ed for the e Fisca cal l year ar. 6. 6. Tot

• tal

al A L A La Carte e sa sales es for the e Fisc scal al year. Al All repor

• rts

ts need eed to be pul ulled ed from

• m the fiscal

al year ar. For

• r exam

ample le: Oc Oct 1, 1, 2014 4 - Sept.

• t. 30, 2015

Jul uly y 1, 1, 2014 4 – Jun une e 30, 2015 Jan 1, 1, 2015 5 – Dec 30, , 2015

Fi Fisc scal al Yea ear - Tria ial l Ba Balan ance ce Rep epor

• rts

ts

Total tal No Non-Pr Progr

• gram

am Revenues: enues:

• Dai

aily ly Sal ales: es: A La C a Car arte e (F (Function unction Code

• de-6730

6730)

• Dai

aily ly Sal ales: es: Ot Other her (F (Function unction Code

• de-67

6740 40)

• Ot

Other er Food

• od Service

vice Income come (F (Function unction Code de- 679 790) 0)

*Tota

• tal Revenue

enue is available ble on the e Balanc nce e Shee eet t Repor

• rt

Reven enue ue Cod

• des

es – NSLP 5110 – SNB 5135 – REG B 5130 – Snack 5125

Fiscal Year Trial Balance Reports

Total tal Food

• od Cost

st:

• Child

ild Nutr trition ition-Pur Purchase chased d Food

• od (O

(Obj bject ct Code

• de - 461)

1)

• USDA

A Commodit mmodities ies (O (Obj bject ct Code

• de - 461)

1)

• Mi

Minus s CNP NP Reba bates es (F (Function unction Code

• de -8993)

993)

Reven enue ue Cod

• des:

es: FFVP – 5192 CACFP – 5199 SFSP – 5170 Fun unct ctio ion n Cod

• des:

es: Food Service – 4210 Summer Feeding – 9340 CACFP - 9341 FFVP - 0074

Revenue enue fr from m No Non-Pr Progra

• gram

m Foo

• od

d Cal alculat culation ion Ex Exam ample ple

• SFA has the f

e foll llowi wing g charact acter erist istic ics

• Tota

tal l foo

• od cos

d costs: ts: $50 500,000 0,000

• Non

Non-pr program

• gram food
• d costs

sts: : $50,000 0,000

• Rei

eimbur bursable sable mea eal food d costs sts: : $45 450,000 0,000

• Tota

tal l revenue: $1,000,000 ,000,000

Reven enue ue from

• m Non
• n-Pr

Program

• gram Foo
• od

d Cal alculatio culation n Ex Exam ample le

■ Reven enue e Requi uirem rement nt

– Pe Percentage centage of tota

• tal

l food d costs ts th that t is non-pr progra

• gram

m foods ds ■ $50,000/ $50,000/$5 $500, 00,000 00 = = 10% 0% – Revenue enue Targe get ■ 10% x $1,000,000 00 = $ $100,000

■ If this s SFA A earns ns $100,0 00,000 00 in revenue enue from

• m non
• n-pr

progr

• gram

am food

• d sa

sales es, , it is in compliance. pliance.

Pl Plat ate e Cost st Calcu alculation lation Workshee ksheet

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