Operate a pricing program with free milk

Special Milk Program (SMP)

The Special Milk Program (SMP) is funded by the United States Department of Agriculture (USDA) and administered by the Colorado Department of Education (CDE)

Office of School Nutrition (OSN)

1940

Chicago & New York

Historical Timeline

1942

Continued

Expansion

1941

Omaha, Ogden, Birmingham,

St. Louis, & Boston

1943

Cash reimbursement for

Type C lunch

Historical Timeline

1954-55

83 rd Congress authorized use of

Commodity Credit

Corporation funds

1946

Incorporated into the

NSLP

1955-56

Reimbursed schools of HS grade & under for milk served over and above the amounts they normally use

Historical Timeline

1966

The SMP was made a part of the Child

Nutrition Act

1957

84th Congress extended the program 2 more years & included child-care centers, settlement houses, nursery schools, & summer camps.

Today the Special Milk Program or

SMP….

Provides milk to children in schools, child care institutions and eligible camps that do not participate in other Federal child nutrition meal service programs. The program reimburses schools and institutions for the milk they serve.

Requirements for Participation

SCHOOLS

Does not participate in a meal service program under HHFKA

OR

Half-day pre-kindergarten or split session kindergarten programs with no access to meal service

Camps

 Must operate as a non profit program with tax exempt status – 501(c)(3)

 Does not participate in a meal service program under HHFKA

SMP Options

Schools

 Option 1 - Operate a pricing program with free milk

Option 2 - Operate a pricing program without free milk

 Option 3 - Operate a nonpricing program

When local school officials offer free milk under the program to low‐income children, any child from a family that meets income guidelines for free meals is eligible. Each child’s family must apply annually for free milk eligibility.

Camps

 Option 3 - Operate a nonpricing program

Pricing VS. Nonpricing

Pricing – means there is a separate charge for milk, so that the purchase of milk is optional . This shall include any such program in which maximum use is made of Program reimbursement payments in lowering or reducing to “zero” wherever possible the price per half pint which children would normally pay for milk per 7CFR§215.2(t).

NonPricing - means program which does not sell milk to children.

This shall include any such program in which children are normally provided milk, along with food and other services, in a school or childcare institution financed by a tuition, boarding, camping or other fee, or by private donations or endowments per 7CFR§215.2(p).

Option #1

Option 1 - Operate a pricing program with free milk

Under this option, sponsors are reimbursed at the paid rate of

$.1925* cents for half pints of milk served to children who pay for their milk. Sponsors are reimbursed for the actual weighted cost of the milk served to children eligible to receive free milk.

*2012 reimbursement rate

Option #2

Option 2 - Operate a pricing program without free milk

Under this option, sponsors receive only the paid rate of $. 1925* cents for half pints of milk served to children who pay for their milk. There is no free reimbursement rate .

* 2012 reimbursement rate

Option #3

Option 3 Operate a nonpricing program

Under this option, sponsors are reimbursed at the paid rate of

$.1925* cents for half pints of milk served free to all enrolled children. Under this option the district absorbs any additional cost beyond the current reimbursement rate.

*2012 reimbursement rate

Price Calculation

Reimbursement rate for the 2012-13 school year is .1925 per ½ pint.

Dairy/vendor charges the school .30 cents per ½ pint*

School adds .05 handling fee for administrative/supply costs.

Price = 20 cents per ½ pint after rounding up to the nearest nickel.

Purchase price

School handling fee

.30 (per ½ pint)

.05

Program cost .35

Less reimbursement - .1925

Price Charged

.1575

.20

*If more than one price is paid cost is weighted

To Apply

Schools

When submitting your annual renewal application online select

SMP for those schools that will be participating in the SMP.

Camps

Contact CDE OSN by email

An online application will be provided

All sponsors must apply annually

Approval

SMP sponsors will receive an approval letter by email

Tools Needed

Schools

Milk must be tracked on a Milk Participation Record form or equivalent.

Camps

Milk must be tracked on a Daily Milk Inventory form or equivalent.

Milk Offered

Type

At this time, the HHFKA in the SMP, only the milk fat restriction

(fat-free and low-fat milk requirement) applies.

The limit on flavored milk and the milk variety requirement do not apply to the SMP.

All milk should contain vitamins A and D at levels specified by the Food and Drug Administration.

Amount

A minimum of 8 ounces of fluid milk must be served.

Sponsors Must

Follow federal procurement guidelines for purchasing milk and milk supplies

Follow food safety guidelines

Operate the Program as a non-profit milk service

Comply with Civil Rights

Procurement

Organizations must comply with federal procurement standards

CFR 215.14a; ensuring free and open competition

Contracts exceeding $150,000.00 require formal bid

Price quotes and bids must be documented

Keep records (invoices and/or receipts) of all milk purchases

Food Safety

Follow state and county health regulations

All sponsors must store milk at 40 ° or below

Schools must have a food safety program based on Hazard

Analysis and Critical Control Point (HACCP) principles.

Non-Profit

Any school or non-profit child care institution that qualifies shall receive the SMP upon their request.

A non-profit milk service is intended to encourage the consumption of milk with all income from the Program used solely for the operation and improvement of the SMP.

Civil Rights

Sponsors must ensure that:

 There is no physical segregation of or any discrimination against any child because of race, sex, color, national origin, age, or handicap in the course of milk service.

Schools utilizing the “free milk” option, must not overtly identify children receiving free milk benefits.

 When different types of milk are served to children, (a) a uniform price for each type of milk served shall be charged to all non-needy children in the school or child-care institution who purchase milk, and (b) needy children shall be given the opportunity to select any type of milk offered.

 “And Justice For All Posters” are displayed in the sponsor’s office and where milk is served.

 Non discrimination statement including complaint filing information must appear on all materials related to the SMP.

Reimbursement

Payments are made to program sponsors for the number of half -pints of milk served each month to eligible children

There is no limit to the number of half -pints each eligible child can receive

Claims are submitted online at the CDE OSN website under online claims and services located at: http://www.cde.state.co.us/cdenutritran/nutrionlineclaimsandservices.htm

Claims must be submitted within 60 calendar days of claim month

Helpful Tips

If providing milk in glasses, use a 10 ounce glass

Submit your application on time!

Keep all records organized and available for review

Submit your claim for reimbursement on time!

The legal size “And Justice for All” poster is 11 X 17 & can be obtained from CDE OSN

Keep all records for a minimum of 3 years plus the current fiscal year

Reviews

All SMP sponsors will be reviewed a minimum of every 5 years*

The review form used is available on the CDE OSN webpage under Programs/Special Milk Program located at: http://www.cde.state.co.us/cdenutritran/nutrimilk.htm

*School milk sponsors should be reviewed during their scheduled

Administrative Review.

Any moo questions?

Contact:

Jennifer Otey, Senior Consultant

Colorado Department of Education

Office of School Nutrition

1580 Logan Street, Denver CO 80203

Phone: 303-866-450

Otey_j@cde.state.co.us