USDA Foods Utilization & CSW Updates Presented by the New Jersey - - PowerPoint PPT Presentation

USDA Foods Utilization & CSW Updates

Presented by the New Jersey Department Of Agriculture

• Manage

Entitlement Dollars for Maximum Use

• Track your

balances so Dollars are not wasted

• Make Decisions to

Benefit Your District

• Select Processors,

Products & Distributors Based

• n Your Needs
• Use Tools in

SNEARS

• Understand the

Process of Receiving USDA Foods

Goals for USDA Foods

Utilization

 How your entitlement dollars are determined  Determining what percent of your entitlement dollars to send to the warehouse and/or for processed products  The Structure of USDA  Department of Defense Pilot  Completion of the new Warehouse Spreadsheet  Determining how to spend your processing entitlement dollars

In This Training We Will Review:

 CSW Reference Form  CSW Diversion Calculator Tool  Quick Review of CSW Completion  Pass Thru Methods and Distribution  Tracking of Commodity Usage  Draw down and State Bank

In This Training We Will Review:

ENTITLEMENT Federal

Richard B. Russell National School Lunch Act:  Established a guaranteed level of assistance for USDA Foods at 11 cents per meal.  Adjusted annually for inflation.  Mandates the use of a formula multiplying the previous year’s ADP by a per meal rate.  The per meal rate is announced each July in the Federal Register  The current per meal rate to be used on the CSW is $0.2325

ENTITLEMENT State  Each State Receives A Dollar Value of Products Based on All RAs Average Daily Participation (ADP) from the Previous School Year  Dollar Value is Referred to as State’s Entitlement  Each State Orders Product Based on its Entitlement Until the Dollar Balance is Depleted.

Entitlement = ADP x 180 School Days x $0.2325 Meal Rate

 Ex: ADP: 1000 x 180 Days X $0.2325 Per Meal Rate = $49,050 Entitlement  2014-2015 CSW Form is based on your ADP from the 2012-2013 School Year Why?  This is the data that was used by the federal government to determine the State entitlement dollars  How much commodity entitlement does your district have? The amount is pre-populated at the top of the CSW form

ENTITLEMENT

Recipient Agency

CSW Form

CSW FORM

ENTITLEMENT Percent to Warehouse and Processing

Need to determine what percent to send to warehouse and what percent to send to processing Entitlement Warehouse % Processing %

Things to Consider when Making Decisions

 Past History (Refer to Commodity Acceptance Report in SNEARS)  Canned & Fresh Fruit Distributed through Warehouse  Which Products Best Fit Your Menu Mix?  Did You Use All Your Processing $$$ Last Year?  Did You Run Out of Processing $$$ Last Year?  New Tool: CSW Diversion Calculator

CSW Form

CSW FORM

WAREHOUSE

WAREHOUSE

Warehouse NJDA Current Process

Current Process: Allocations Based on ADP ADPs Are Adjusted Based on % Selected for Warehouse (Ex.: ADP is 1,000; Warehouse % Selected is 50%; 1,000 X 50 % = 500 Adjusted ADP

Warehouse NJDA Current Process

Warehouse Delivery Frequency:

• ADP ≥ 50 Monthly Allocation
• ADP 20 - 49 Sept. & March Allocation
• ADP 1 - 19 Sept. Allocation

Warehouse NJDA Current Process

 NJDA order products from USDA for the Warehouse  RA Receives Monthly Allocation Form with items to choose from including fresh produce  RA completes Allocation Form on SNEARS

(Must be Submitted by Approx. 20th of Prior Month; DOD Due Sooner)

 Picking Ticket is Generated on SNEARS  Receive Monthly Delivery Based on Pre-Scheduled Pick-Up Date

Warehouse NJDA Current Process

Where Can I Find Nutritional Information About the Warehouse Products:  Go to “Resources” section in SNEARS  Select “USDA Foods” on left side  Select ” USDA Foods Fact Sheets”

CSW Form

CSW FORM

Warehouse NJDA Future Process

Future Process  NJDA is in the process of procuring a new web based Food Distribution System  RAs will order their own warehouse products  Option to have direct delivery of fresh produce on a weekly basis

Warehouse NJDA Future Process

Goals for Next School Year  Training RAs to make effective purchasing decisions when we transition to the web based food distribution system  Educate RAs about the structure of USDA and factors to consider when ordering from USDA  Implementation of Department of Defense) Pilot

Structure of USDA

Agriculture Marketing Service: Food and Nutrition Service: AMS FNS FSA USDA Agency Roles in Procuring & Distributing USDA Foods DOD Farm Service Agency: Department of Defense

FNS

FNS (Food and Nutrition Service)

 NJDA’s Primary USDA Liaison  Calculates and Tracks State Entitlements  Takes Food Orders from States  Monitors the Flow of USDA Foods  Provides Policy Guidance on Program Issues

AMS & FSA

 Purchasing and Delivery Arm for USDA Foods  Develop Product Specifications  Issues and Accepts Bids from Manufacturers  Purchases Products and Has Them Delivered to the State Designated Locations

AMS & FSA

Agricultural Marketing Service Farm Service Agency

AMS

PURCHASES PERISHABLE PRODUCTS:

• RED MEAT
• FISH
• POULTRY

AMS Agricultural Marketing Service

• EGG PRODUCTS
• FRUITS
• VEGETABLE

FSA

PURCHASES BASIC NONPERISHABLE PRODUCTS  CEREALS  GRAINS  PEANUT PRODUCTS  DAIRY PRODUCTS  OIL

FSA Farm Service Agency

DOD

DOD Department of Defense  USDA Partners w/ Department of Defense ‘s (DOD) Fresh Fruit & Vegetable Program  Each State Selects Dollar Value for DOD  Partnership Provides Greater Variety of Fresh Produce for Schools

STATE AGENCY

NJDA- State Agency’s Role (New Jersey Department of Agriculture)  Warehouse entitlement amount to spend is determined by the CSW Process  Considers past history of popular products  Orders truckloads of product for the warehouse using WBSCM (USDA Foods ordering system  Must order full truckloads  Order a variety of products because orders can be cancelled.

STATE AGENCY

NJDA- State Agency’s Role (New Jersey Department of Agriculture)  Order more products earlier in the year so they are received.  Spread out orders so they do not incur warehouse storage fees if they cannot be allocated timely.  Set aside a specific amount of entitlement for fresh produce purchases through the Department of Defense.  Orders DOD produce weekly for RAs to receive monthly.  DOD items must be easily stored, transported & longevity.

DOD Pilot

Department of Defense Pilot Program

 Starts next school year  15 schools chosen

• 50% or more diverted to warehouse
• ADP greater than 1500

 RAs to determine amount of entitlement for DOD  Will have account in FFAVORS to select and order produce  Will draw down from DOD Entitlement  Will order produce for delivery on a weekly basis

CSW Warehouse Worksheet

Warehouse Allocation Worksheet

 Training for Future Ordering Process  2014-2015 School Year-- Only Used for Training & Statistics  Mandatory to Complete!  NJDA Reviews to Ensure Full Truckloads  Will Not Get Exactly What You Requested  Major Factor in Product Decisions for 2014-2015

CSW Warehouse Worksheet

Warehouse Allocation Worksheet

 Spreadsheet Lists Products that will be Ordered Next Year  Translates Entitlement Dollars into Actual Products and Number of Cases  Spreadsheet must be Completed and Emailed to agnfood@ag.state.nj.us by CSW form due date

Warehouse Allocation Worksheet

LOCATION OF WAREHOUSE ALLOCATION WORKSHEET

Review of CSW Process

Where are we in completion of the CSW?  Entitlement was pre-populated in the form  Chose a percent to divert to processing and warehouse  If 100% warehouse:

• Complete Memorandum of Understanding
• Complete & Email Warehouse Allocation Worksheet
• Submit CSW Form to NJDA

 If Diverting to Processing:

• Continue to Processing Portion of the Form

CSW Form

Note: Location of CSW Form Instructions

CSW FORM

Processing Dollars What Does Processing Mean???? Conversion of Raw Commodity Finished End Product

Processing For Example: Chicken Large Chilled Bulk – Chicken Nuggets Mozzarella Cheese, Flour, Tomato Paste – Pizza Beef Bulk Coarse Ground – Burgers Flour – Pretzels & Cookies Potatoes, Bulk – French Fries

Processing Dollars How to Spend Processing Dollars????  Total Amount to Spend was Already Decided (Dollars Diverted to Processing)  Decide % to Divert for Each Raw Commodity  Decide How Much to Send to Each Processor  See CSW Reference Form on SNEARS (Use to Determine Types of Products Associated w/ Each Raw

Commodity)

CSW Reference Form

CSW Reference Form

 Top 15 products sold in New Jersey by each processor  Has serving sizes and meal components  Most popular items but can use other products as well  Separate spreadsheet per raw commodity on CSW Form  Tabs on bottom of sheet for each processor  Commodity credit per case

CSW Reference Form

Things to Consider when Choosing a Processor:  Distribution – Does Your Current Distributor Stock Specific Brands & Products  Focus on Current Commercial Products Being Used (Consider it like receiving a discount)  Use Commodity Diversion Calculator to Determine the Amount to Send To Each Raw Commodity & Processor

Things to Consider when Choosing a Processor

Things to Consider when Choosing a Processor:  You are Not Tied to Any Specific Products

• Make Decisions Based on Products You are

Currently Using And Then

• Try New Products Later in the Year!

 Smaller Districts:

• Choose 2-3 Processors
• Do Not Send Small Amounts to a Large Number of

Processors

Things to Consider when Choosing a Processor

Commodity Diversion Calculator

Review of CSW Process

CSW Review- Processing Portion  Divert 100% of “Dollars Diverted to Processing” to Raw Commodities  Group Maximums  Processor Selection:

• Choose Processor from “Processor List” drop down
• Hit Add Button to Add Processor
• Can Add More Than One Processor

Review of CSW Process

CSW Review- Processing Portion  Total Dollars Allocated to the Raw Commodity Should Match the Total Dollars Allocated to the Processor  Complete Memorandum of Understanding if Selected 100% Processing  Submit Data to NJDA  Complete Warehouse Allocation Spreadsheet and Email to agnfood@ag.state.nj.us if any percentage was allocated to the warehouse

CSW Form

FSMC Authorization Letter

FSMC Authorization Letter  Available on Submission Confirmation Screen of CSW  Must be Submitted by All RAs with a Foodservice Management Company  Must be Printed on School District Letterhead and Have Original Signatures  Must Be Mailed to NJDA by the CSW Form Due Date

Due: February 28, 2014

Atlantic, Burlington, Cape May, Cumberland, Gloucester, Salem & Ocean

Due: March 7, 2014

Camden, Hunterdon, Mercer, Middlesex, Monmouth, Somerset, & Union

Due: March 14, 2014

Bergen, Essex, Hudson, Morris, Passaic, Sussex, & Warren

CSW SHUT Down MIDNIGHT MARCH 14 Lose Entitlement $$$ After March 14th !!!!

Due Dates for CSW Forms

Page ge La Layout

What Happens Next?  Data Consolidated by NJDA Staff  Processor Allocation Sheets Posted on SNEARS on March 28  RAs Review Allocations  Corrections Must Be Made by April 5th by Contacting NJDA  No Changes Made After April 5th  Processor Allocation Sheets Sent to Processors on April 15th

Page ge La Layout

 Entitlement Dollars are Converted to Pounds Based on USDA’s Average per lb. Cost of the Raw Commodity  Summary of Processor Allocation Sheet Identifies Number

• f Trucks of Raw Commodity Needed to Fill All RA

Allocations  NJDA Orders Raw Commodities & Sends to Processors to Turn into End Products

NJDA DA Orders Raw C Commo mmodity ity

Page ge La Layout

 Processors Use Allocation Sheets to Load Schools’ Banks into K12 & Processor Link (Tools to Track Your Processed Commodities)  Banks Only Contain Amount Diverted for Current School Year  Leftover Balances From Previous Year are Not Carried Over  Remember --- Use It or Lose It!!!!

Filli ling R RA B A Banks s & Ca Carryover

Distribution  Where will you purchase the product from?  Does You Current Distributor Stock the Processed Commodities You’ve Selected  Which Pass Thru Methods Does Your Distributor Offer?

Distribution  You will be Assigned the Same Distributor and Pass Thru Method Used in the Past  Contact the Processor to Make a Change or to Setup a New Distributor and/or Pass Thru Method  NJDA Will Provide:

• Contact Lists to Sample Products
• Contact Lists to Setup/Change Distributor & Pass

Thru Method

What at’s a s a V Value e Pass T ss Through gh Method

• d????

 RA Diverts Commodity Dollars to Processing during CSW Process  Manner in which the RA Actually Receives the Commodity Credit Associated with the Finished End Product Purchased from a Processor or Distributor

Pas ass T Thru Method

• ds

Pass T ss Through gh M Method Example ple:

 RA Has $1,000 in Chicken Bank  RA Purchases 5 cases Chicken Nuggets  Pass Thru Value is $25/case  $125 (5 cases X $25/cs.) will be Removed From Your Bank  $875 Remains in Your Bank

Pas ass T Thru Method

• ds

Direct Sale Fee for Service Billed by Processor Fee for Service by Distributor Refunds

NOI

VPTS

Value Pass Through System

 RA Purchases a Product Directly From the Manufacturer  RA Pays Net Price to the Processor  Commodity Value is Already Removed from the Price of the Case How do you know you received your Commodity value?

• Commodity discount should be printed on the invoice

Value Pass Through System

Direct Sale

Billed by Processor Between Processor and RA

 RA is Not Charged for the Cost of the Raw Commodity in the End Product  RA is Charged for Any Other Ingredients Added to the Product  RA is Charged a Fee for Processing the Raw Commodity into the End Product  RA is Charged a Delivery Fee  RA is Billed by the Processor

Value Pass Through System Fee for Service

Billed by Processor

Between Processor and RA

Fee for Service Example: Example: End Product: Chicken Nuggets Raw Commodity Chicken - No Charge Breading – Charge Spices – Charge Packaging – Charge Processing Fee – Charge Delivery – Charge

Value Pass Through System Fee for Service

 Same as Fee for Service by Processor but Bill Comes From Distributor  How Do You Know You Received Your Commodity Value?  Obtain an Annual List of Fee For Service Prices from the Processor  Check Your Invoice to Assure That You Are Charged the Correct Amount

Value Pass Through System Fee for Service

Billed by Distributor

Between Distributor & RA

 RA Pays Full Price for End Product  RA Submits Refund Form to Processor & Receives Commodity Credit How do you know you received your Commodity value?  Credit is Calculated on the Refund Form  RA Should Confirm that the Check Received Matches the Refund Form

Value Pass Through System

Refund

 Distributor Removes Commodity Pass Thru Value from the Price of the End Product

How do you know you received your Commodity value?

 Commodity Pass Thru Value is Shown

• n the Invoice

Value Pass Through System

NOI Net Off Invoice

 Track Your Balances in K12 Foodservice & Processor Link

• Service is Free
• Go on the Website and Request a User Name/Password

 K12 Sends Monthly Reports w/ Commodity Usage to RA  Please see the List of Which Processor Utilizes Each of the Sites and a Link to Nutritional Information for the End Products

Tracking of Commodity Usage

 Review Your Balances Regularly in K12 and Processor Link  Make Sure Your are Using Your Commodity Dollars  Make Sure You Do not Run Out of Commodity Dollars  Can Contact Manufacturer/Broker to See New Products or for Suggestions for Utilizing Your Commodities  55% Draw Down by End of January  Use It or Lose It!!!!

Commodity Draw Down

Draw Down Chart

DRAW DOWN CHART

 All Pounds (dollars) Removed During Drawdown Go into the State Bank  Pounds/Dollars in the State Bank Can be Used by any RA That is Low on Pounds(Dollars)  Will Provide Contact List for Transfer of Pounds (Dollars)  State Bank Provides Opportunity to Receive Additional Dollars Above Your Entitlement if You Manage your Commodities Wisely!  Send to Processing Only What You Plan on Using!

State Bank

Jennifer Zeligson, Manager, Food Distribution Programs Processing Supervisor: Jacqui Thomas (609) 633-9246 Fiscal Services Supervisor: Kory Burtnett (609) 777-0537 Billing/Invoice Questions: Melissa Korpusinski (609)984-2232 Warehouse Supervisor: Allen Smith (609) 984-2231 Allocation Unit Supervisor: Carol Dilts (609)984-4375 Pick-up Date Changes, Allocation & Picking Ticket Questions Safeway Warehouse: Shelly Jones (609) 292-0337 Port Newark Warehouse: Maria Keitt (609)633-3613

CONTACT US

Main Phone Number: FAX Number: (609) 292-0337 (609) 984-5367

Questions?

Brought to you by:

New Jersey Department of Agriculture, Food Distribution Program