Welcome to a brief overview of the Slide 1 Oregon Department of - - PDF document

Slide 1

Oregon Department of Education – Child Nutrition Programs Oregon Department of Education – Child Nutrition Programs

USDA Food Distribution Program

Welcome to a brief overview of the Oregon Department of Education USDA Food Distribution Program. Federal USDA Foods support American agriculture producers by providing schools with healthy and nutritious food to Federal child nutrition programs. A wide variety of fruits and vegetables, grains, cereals and nuts, as well as dairy and meat products, are available as USDA purchased foods. Many products are formulated to be low in fat and have lower sugar and sodium content than commercial

• counterparts. USDA Foods account

for approximately 15-20% of the foods used by school nutrition programs. Slide 2

Oregon Department of Education – Child Nutrition Programs

CNPweb Food Distribution Program

Address: https://cnp.ode.state.or.us/Login.asp

Login Click here Click here

The Oregon Department of Education Child Nutrition Programs provides the CNPweb program as a tool for sponsors to manage the tasks associated with Child Nutrition

• Programs. Only registered users

can access CNPweb. A CNPweb user authorization form must be completed and sent to your assigned specialist or the Food Distribution Program Coordinator. Be sure to request Food Distribution access on the form. The Green puzzle piece on this slide represents the portal to the USDA Food Distribution Program. All of the USDA Foods activities will take place in the green puzzle piece. Users must have Food Distribution designation to enter this site.

Slide 3

Oregon Department of Education – Child Nutrition Programs

USDA Foods State Entitlement

Estimated State Entitlement

• Is based on Projected USDA Foods entitlement rate and the

projected # of lunches served in the Current SY.

• Projected Oregon Lunches Served X Projected Entitlement Rate

= Projected State Entitlement

Actual State Entitlement

• Is calculated by multiplying the actual USDA Foods Entitlement Rate

that is published by USDA in the following July times the actual lunches served that is published in the following November.

The USDA Foods Program begins with Entitlement. Entitlement is the value for a given year that sponsors are able to spend on USDA Foods. Each SY in January, the State projects the next years entitlement by calculating the estimated statewide lunches served, times the estimated USDA Foods entitlement

• rate. The state must also factor in if

there is a negative state entitlement carryover with USDA. This sometimes happens when the price

• f USDA Foods increases. This

calculation produces the initial distribution of entitlement that sponsors use in the preorder for the following SY. The actual state entitlement is calculated sometime in the fall. This could result in additional distribution

• f entitlement during the SY. In

some cases an additional preorder period will open to give sponsors a chance to spend that additional entitlement.

Slide 4

Oregon Department of Education – Child Nutrition Programs

How State entitlement is distributed to sponsors

State Entitlement is distributed to Sponsors by calculating each Sponsor’s percentage of the total lunches served in the state. Sponsor’s Percent of State Lunches X Total State Entitlement Things to remember about entitlement:

• Sponsors should spend their entitlement during each SY.
• Managing Entitlement is an ongoing effort.
• Sponsor entitlement expires at the end of each SY.

State Entitlement is distributed to Sponsors by calculating each Sponsor’s percentage of the total lunches served in the state. This can be updated during the SY as the USDA rate and the actual lunches served become known. That means entitlement is a moving target. Here are some things to remember about sponsor entitlement:

• Each sponsor should make

every effort to spend all of their entitlement each year to get the most value from USDA Foods

• Managing entitlement is an
• ngoing effort that requires

active participation in each distribution period and each preorder period.

• Sponsor entitlement expires at

the end of each SY. So, if you don’t use it you loose it. Slide 5

Oregon Department of Education – Child Nutrition Programs

USDA Foods Pre order Periods

• Place advance orders
• Designate preferred distribution periods

USDA Foods Order and Distribution Period

• This includes the Order Window and it’s corresponding Delivery Periods.

USDA Foods Order Window

• Phase 1– Order USDA Foods or reduce them.
• Phase 2– “No Charge to Entitlement Foods” available.

USDA Foods Delivery Periods

• 1st Delivery Period is in the first half of the delivery month or period.
• 2nd Delivery Period is in the second half of the month or delivery period.

USDA Foods Order and Distribution Periods

USDA Foods ordering instructions can be found at: www.ode.state.or.us/go/usdafoods

There are several steps to ordering and receiving USDA Foods First, preorders are completed long before the SY even starts. These preorders help the Food Distribution Program advance

• rder the foods from USDA. However,

many factors influence USDA’s purchase of products and sometime products that have been preordered never become available in the distribution periods for which they were

• rdered. Also, sometimes USDA cancels

products before they are received in the state. Second, you must place those preordered products on an order with a delivery destination and delivery period. This is done during the order windows. Assuming that all the products pre ordered were available for purchase and they arrived in time for the distribution, they will be available for you to place on an order with a

destination and delivery period during the

• rder window.

The order & distribution schedule lists the dates you must place orders and assign them to a delivery location, the delivery dates available, as well as the dates that preorders open and close. This schedule is discussed more in-depth on the next slide. There are two phases to each Order Window:

• During the 1st Period order the USDA

Foods on your allocation or reduce

• them. These are the foods that cost you

entitlement dollars. This is the only time that food quantities may be reduced and entitlement returned to your account from pre-order allocations! You can also add “Unassigned Entitlement Foods “or Bonus Foods” if they are available. If you do not place your pre-ordered items

• nto an order during phase 1 you lose

the food and your entitlement is

• charged. This is done to ensure

consistent inventory movement. We cannot have food sitting around in the warehouse possibly expiring because sponsors forget to place their orders.

• During the 2nd Period “No Charge to

Entitlement Foods” are available. These are foods that other sponsors have lost by not placing their pre-ordered foods

• nto an order as discussed previously.

These foods are available at no charge to your entitlement but delivery costs still apply.

• It is very important that you keep track
• f the order and distribution schedule. If

you miss an order window, you will not receive an order for that delivery period, but your entitlement will be charged for the pre-ordered items. Again, this is done to ensure inventory movement and make sure sponsors do not receive unwanted foods.

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Oregon Department of Education – Child Nutrition Programs

USDA Foods Order and Distribution Schedule

To print or save the most recent version

• f the schedule go to:

www.ode.state.or.us/go/usdafoods

One of the most important documents for you to look at throughout the year is the current USDA Foods order and distribution

• schedule. The direct link to this

page is listed. This schedule has columns that designate the dates for phase 1 and phase 2 of the order period. It also lists the available delivery windows for each order period. The schedule is subject to change

• r be updated throughout the year

based on the needs of ODE, sponsors or our designated contractor. Slide 7

Oregon Department of Education – Child Nutrition Programs

Direct Delivery (BB) USDA Foods

USDA Foods Ordering Instructions: www.ode.state.or.us/go/usdafoods Direct Delivery Foods (Brown Box) is the term used for foods that come directly through the USDA and case packed for distribution through the State Distributing Agency. Cancelled Products (Loads): When an item you have requested is cancelled, your entitlement account will be credited for the USDA value of that item. There will be opportunities for you to spend the entitlement that has been returned to your account. Delayed Products (Loads): When the delivery date is delayed, you will receive that product in a later distribution month. Distribution Periods: There are 7 Distribution Periods that correspond to the following months: August / September / October / November / January / March / April Fair Market Value: Is the price that the USDA determines is the value of the USDA Foods products. Availability of USDA Foods Sometimes, products that you have pre-ordered will not be available in the distribution periods that you selected. The Food Distribution Bulletins and CNPweb notice page will provide updated information on availability.

There are 3 ways to spend USDA Foods entitlement. They can be spent on:

• Direct Delivery USDA Foods,

also know as Brown Box or BB Foods

• Diversion Processing of USDA

Foods into End Products

• The DoD Fresh Produce

Program. Direct delivery foods also known as (Brown Box Foods) is the term used for foods that come directly through the USDA and are case packed for distribution through the

• State. These products are ordered

from the USDA for delivery to the State contracted warehouse and then distributed from there to the sponsors during the 7 distribution

• periods. These are the products

that must be placed on an order during the order windows.

Slide 8

Oregon Department of Education – Child Nutrition Programs

Diversion/Processing

1. Sponsors direct the State to send USDA Foods to processors for further processing into end

• products. This is done on

a pre-order in CNPweb. 2. Sponsors must use competitive procurement when selecting

• processors. This must be

done before diverting USDA Foods on the pre-

• rder.

3. Sponsors communicate the desired end products and delivery specifications to the processors through brokers and processor representatives.

The next way to spend entitlement is Diversion /Processing. This allows sponsors to send USDA Foods to processors for converting into end products. These are products that are made from USDA Foods with added ingredients or

• processing. The processors bills

each sponsor for the additional costs. Sponsors are responsible for the following:

• Competitive procurement of

processors according to state and local procurement laws.

• Communication with processor to

identify the product, quantity to produce, and when and where to deliver the end products.

• Only Processors who have state

approved processing agreements may be used .

• Sponsors must ensure that they

are receiving the full value of USDA Foods in the products they receive.

• Commodities diverted for a SY

must be received by the sponsor by Dec 31st of the following school year otherwise the pounds divert to the state holding

account. Slide 9

Oregon Department of Education – Child Nutrition Programs

Diversion/Processing Cont.

• Did you know that ODE has competitively procured processing

agreements?

• Poultry processing agreement is already available. Go to

http://www.ode.state.or.us/search/page/?id=4123 to access.

• Product item numbers
• Product pricing with/without USDA Foods value
• Crediting/Nutrition Info.
• Processor/Broker contact information
• The agreements went through a rigorous and competitive process that

included Oregon sponsor input and evaluation.

• All NSLP sponsors in the State of Oregon have access to these prices.
• In all cases delivery prices and terms are negotiated between the

processor and you.

Did you know that ODE has competitively procured processing agreements for sponsors to use? These agreements mean less work for you in meeting Federal/State procurement requirements. ODE has already completed poultry price agreements and is working on other product categories. The agreements went through a rigorous and competitive process. Processors were scored on:

• taste
• price
• meeting meal pattern and

nutrition standards All scoring results are posted on the web page. All NSLP sponsors in the State of Oregon have access to these prices but you will need to work with the processor/broker on delivery terms. In some cases the processor will send them with your broad-line distributor but they can also ride on the Tools for Schools trucks along with your direct delivery foods. In all cases delivery prices and terms are

negotiated between the processor and you. Slide 10

Oregon Department of Education – Child Nutrition Programs

DoD Fresh Produce

What is it?

Allows the purchase of fresh fruits and vegetables through the USDA Foods program.

Getting Started

If you choose to participate in the DoD Fresh Produce Program, follow these steps:

• Determine how much entitlement you would like to put towards purchasing DoD

Fresh produce and notify ODE FDP.

• ODE will send your request to the Department of Defense to create an account in

the Fresh Fruit and Vegetable Order Receipt System (FFAVORS).

• Once your account is created, you will be notified of your temporary

username/password, and the entitlement amount you requested and will be loaded into the FFAVORS system. Ordering can begin around the start of the school year in August/September.

Domestic (USA) Grown Products Only

• Currently Duck Produce serves the west side of the state and Aloha produce

handles the east side of the state.

DoD Surcharge

• DoD adds a 4.6% surcharge that is included in the case price.
• ODE FDP will also charge a small per pound fee to cover administrative costs.

“extra or additional” funds. Sponsors

The Department of Defense (DoD) Fresh Produce Program allows a sponsor to take a portion or all of their USDA Foods entitlement and apply it to the DoD Fresh Produce Program which offers fresh fruits and vegetables through the USDA Foods program. DoD entitlement is not “extra or additional” funds. Sponsors who participate in DoD must request that a portion of their entitlement be transferred into a DoD account. Sponsors who participate in this program will have access to a DoD

• n-line ordering system. DoD

contracts with produce vendors to

• perate the program. Only domestic

produce (US grown) may be purchased. Currently Duck Produce serves the west side of the state and Aloha produce handles the east side of the state.

• DoD adds a 4.6% surcharge that

is included in the case price that you see in the online ordering system for delivery/administrative fees.

• ODE FDP will also charge a small

per pound fee to cover administrative costs. This is charged in lieu of the normal direct delivery/diversion service fee. Slide 11

Oregon Department of Education – Child Nutrition Programs

Follow these procedures when receiving USDA Foods:

1. Inspect USDA Foods for damage 2. Check and record temperatures and ensure that they are appropriate for each product 3. Count products and check the count against the Bill of Lading (delivery document) 4. Document discrepancies 5. Sign delivery document

Single Inventory System

• USDA allows USDA Foods to be comingled with purchased products in your inventory. You do

not have to separate them or inventory them separate.

• Inventory of USDA Foods must occur at least annually.

Receiving and Storage of USDA Foods

When USDA Foods are delivered to sponsors they must be counted and verified with the delivery document. In addition, all deliveries should be inspected for damage or

• mishandling. Delivery documents

must be signed at the time the products are received. The contracted warehouse and carrier will notify your designated contact person at least 48 hours prior to notice. If your contact person is not available, please contact Tools for School with alternate contact information. Due to the single inventory system you do not have to separate USDA Foods from your commercial inventory but you do need to take an inventory at least annually.

Slide 12

Oregon Department of Education – Child Nutrition Programs

USDA Foods Fact Sheets

USDA Foods Fact Sheets are available at: http://www.fns.usda.gov/fdd/schfacts/default.htm

USDA Foods Fact Sheets are available at the web site listed here. Take some time to review these sheets as they provide valuable information for your menu planning. They include: nutritional information, product description, preparation instructions and other valuable

• information. Actual products

received from USDA may be slightly different than the fact sheet. This is due to variations between processors and the competitive procurement process that is

• required. The fact sheets represent

an average of all of the products that USDA procures. Slide 13

Oregon Department of Education – Child Nutrition Programs

Allowable Uses of USDA Foods

• Should be used in lunches served to children as part of the:
• National School Lunch & Breakfast Program
• Summer Food Service Program
• After School Snack
• May be used in other activities when the activities primarily benefit

students.

• Revenues received must accrue to the school food authority’s nonprofit school food

service account.

Allowable uses of USDA Foods- USDA Foods should be used in National School Lunch and Breakfast program, the Summer Food Service Program and the After School Snack Program. However, they may also be used in other nonprofit school food service activities as long as the activities primarily benefit students. Revenues received from these activities must accrue to the school food authority’s nonprofit school food service account and it must cover all costs.

Slide 14

Oregon Department of Education – Child Nutrition Programs

Value of USDA Foods Received Report

State or local government agencies and nonprofit organizations that receive $500,000 or more in Federal grants in a given school or fiscal year must obtain an audit for that year. These organizations must consider the Value of USDA Foods as part of such grants.

The value of USDA Foods received report is available in CNPweb by clicking on the reports link in the upper toolbar and then clicking Value of USDA Foods. USDA Foods Delivered X USDA Foods Value + Entitlement to DoD Program = Value Received USDA Policy No. FD-104: This memo details the options available when assigning value to USDA c (donated) Foods for audit purposes. ODE used option 1, the USDA purchase price (cost-per-pound), when assigning values for the foods on your Value of USDA Foods Received report.

State or local government agencies and nonprofit organizations that receive $500,000 or more in Federal grants in a given school or fiscal year must obtain an audit for that

• year. These organizations must

consider the value of USDA Foods as part of such grants. After USDA Foods orders are invoiced in CNPweb, the value of USDA Foods received report is

• available. This report is calculated

by multiplying the actual cases or

• lbs. of USDA Foods delivered to the

sponsor times the value of that product plus the amount of entitlement diverted to the DoD Fresh Produce Program. Please note that ODE FDP is now using the actual USDA Foods cost in this report rather than the Nov. price file. Slide 15

Oregon Department of Education – Child Nutrition Programs

Annual Storage Self Evaluation

• Complete by June 30th
• Keep on file for 3 years +

current year

• Will be checked by ODE on

a review Form available at: http://www.ode.state.or.us/search/page/?id=3846

Annual Storage Self-Evaluation – This document must be completed each year by June 30th and retained in your files for three years plus current year. It is very important that this document is completed thoroughly and accurately each

• year. This document will be

inspected during programs review, and failure to properly complete this form can result in loss of access to USDA Foods.

Slide 16

Oregon Department of Education – Child Nutrition Programs

Advisory Council

The Advisory Council provides guidance to the ODE Food Distribution Program.

• Send requests/suggestions to any Advisory Council

member or ODE FDP staff.

• If you are interested in serving on the Advisory Council

complete an application and send it to ODE FDP. Form available at: http://www.ode.state.or.us/search/page/?id=1529

The Advisory Council provides guidance to the Food Distribution Program that will ensure wise utilization of USDA funds to best benefit the health and education of students throughout Oregon. The link at the bottom of this page will take you to a list of the council members. Slide 17

Oregon Department of Education – Child Nutrition Programs

Contact Information

Oregon Department of Education, Child Nutrition Programs

• Chris Facha, Phone: 503 947-5896 , E-mail: chris.facha@state.or.us

Warehouse and Carrier/Delivery questions

• Tools For Schools/ NW Distributing
• Sally Jimenez, Phone: 208 365-1445 , E-mail: sjimenez@toolsforschools.com
• Alpine Foods
• Shawn Hood, Phone: 503 230-2883 , E-mail: shawn@alpinefoods.com

DOD Prime Vendor

• Western Oregon
• Duck Produce, Sharon Whalen, Phone: 503 445-8972 , E-mail: sharon.whalen@duckdelivery.com
• Eastern Oregon
• Aloha Produce, Nick Dean, Phone: 541-318-0300, E-mail: nickd.alohaproduce@gmail.com

Diversion Processing

• Processor Contact List (See the contact list attached to the processing catalog on the ODE

USDA Foods website at www.ode.state.or.us/go/usdafoods. Click on processing/diversion.

Contact Information – This document lists names and phone numbers of people you can call when you have a question or concern. If you have any questions or need assistance with the USDA Food Distribution Program please contact Chris Facha at 503-947-5896 or chris.facha@state.or.us.