June 1, 2015
( ) Action Required
(X) Informational
MEMORANDUM NO. 025-15 CHILD NUTRITION SERVICES
TO:
Educational Service District Superintendents
School District Superintendents
Assistant Superintendents for Business and/or Business Managers
School Food Service Supervisors
FROM:
Randy I. Dorn, State Superintendent of Public Instruction
RE:
Report 1800 Series – Analysis of Food Service Operations for FY 2013–14
CONTACT: Jeff Booth, Financial Analyst Supervisor
jeff.booth@k12.wa.us, (360) 725-6217
Agency TTY: (360) 664-3631
The Office of Superintendent of Public Instruction (OSPI), Child Nutrition Services (CNS),
annually compiles data on aspects of food service operations and the accounting of
federal funds. The Report 1800 Series is a compilation of reports and statistics for public
school districts. These reports are available to assist school districts in evaluating the
performance of their food service operations. Districts can use the reports to compare
their food service costs to revenues and equivalent meals served. Districts should strive
for a breakeven point between total costs and total revenues. The report also shows
school breakfast and lunch meal participation amongst districts.
Districts included in the Report 1800 operate under the National School Lunch Program
(NSLP) and/or School Breakfast Program (SBP). Food service revenues, expenditures,
and student participation data for districts not operating any federally funded food service
program or operating only the Special Milk Program are excluded.
FINANCIAL DATA SOURCE
The financial data in the Report 1800 Series is derived from each school district’s annual
financial report (SPI/F-196) filed with OSPI. For comparison purposes, statewide totals for
several of the previous years are included at the end of each report.
MEMORANDUM NO. 025-15 CNS
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June 1, 2015
Use caution when comparing the financial administrative performance of one district to
another. Decisions should not be based solely on information taken from this report but
also weighted by other factors such as school board policies, economic status of the
students, enrollment, student participation, type of food service, and district operating
procedures– all of which may significantly influence financial results.
STATISTICAL SUMMARY
The following table presents a three-year comparison of food service operations for all
districts operating federal meal programs based on data in the Report 1800 Series.
Table 1: Year-to-Year Comparisons
Category
Total Revenues
Total Expenditures
Net Loss
Net Loss as a Percent of
Revenue
Food Expenditures as a
Percent of Revenue
Labor Expenditures as a
Percent of Revenue
Equivalent Lunches
Revenue per Equivalent
Lunch
Average Expenditure
per Equivalent Lunch
School Fiscal
Year 2011–12
School Fiscal
Year 2012–13
School Fiscal
Year 2013–14
$360,697,327
$380,753,723
$20,056,396
$359,155,886
$386,291,869
$27,135,983
$370,862,354
$403,293,962
$32,431,608
5.56%
7.56%
8.78%
42.08%
42.43%
43.49%
46.35%
119,598,963
47.14%
115,126,873
47.09%
115,503,039
$3.02
$3.12
$3.21
$3.18
$3.36
$3.49
MEMORANDUM NO. 025-15 CNS
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June 1, 2015
REPORT 1800 SERIES
The attached Report 1800 Series, Analysis of Food Service Operations, includes the
following reports:
Report No.
Title
1800 A
1800 B
1800 C
1800 D
1800 E
1800 F
1800 G
1800 H
1800 I
1800 J
1800 K
Revenues and Expenditures (in Whole Dollars)
Expenditures as a Percent of Revenue
Expenditures as a Percent of Revenue (Ranked)
Expenditures and Revenues per Equivalent Lunch
Expenditures and Revenues per Equivalent Lunch (Ranked)
Percentage of Food and Labor Costs to Total Revenues (Ranked)
Breakfast Participation
Lunch Participation
Percentage of Student Participation in Breakfast and Lunch Programs
Percentage of Student Participation in Breakfast Programs (Ranked)
Percentage of Student Participation in Lunch Programs (Ranked)
Each report includes meal codes to define which child nutrition programs are offered and if
the meal services are provided by a food service management company. The codes are
as follows:
Meal Codes
B
L
M
S
C
Explanation
Breakfast program
Lunch program
Milk program only in at least one school or grade level (e.g., kindergarten)
Snack program
Food service program provided by a food service management company
Report 1800 A – Revenues and Expenditures (in Whole Dollars)
The revenue and expenditure data in Report 1800 A was compiled from the FY 2012–13
Report F-196, Program 98 – School Food Services. The report includes the following
revenue sources as defined in the Accounting Manual for School Districts and reported in
the general fund:
Table 2: Revenue Sources and Account Codes
Revenue Sources
Sale of Meals
OSPI – State Match
Other State Agencies – State Match
Federal Reimbursements through OSPI
Acct. #
2298
4198
4398
6198
MEMORANDUM NO. 025-15 CNS
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June 1, 2015
Revenue Sources - Continued
Federal Reimbursements Received Directly from Federal Agencies
Federal Reimbursements from Agencies other than OSPI
USDA Foods (commodities)
Other School Districts
Volunteers, public agencies, political subdivisions, or associations that serve
public entities while using school facilities and other local child nutrition
programs for school or employee functions
6298
6398
6998
7198
8198
Report 1800 A includes both direct and indirect expenditures. Direct expenditures are
readily identifiable with specific programs. In the food service expenditure program
(Program 98), direct expenditures occur in the following activities:
Table 3: Direct Expenditures and Activity Codes
Direct Expenditures
Pupil Management and Safety
Payments to School Districts
Supervision
Food
Operations
Transfer expenditures for banquets, feeding for the elderly, feeding approved
for day care children, and other feeding operations not chargeable to Program
98.
Activity
25
29
41
42
44
49
The cost of food and labor charged by contractors providing food management services to
certain school districts is recorded in Report 1800 A under the "food" and "labor"
categories. The "other" expenditure category includes travel, contractual services, and
debit transfers.
Credit transfers were prorated to labor, food, supplies, capital outlay, and other
expenditures based on the ratio of each category to the total of all categories for each
school district.
For the purposes of the Report 1800 Series, indirect costs are allocated by applying an
unrestricted indirect cost rate. The rate for FY 2013–14 was derived from each school
district’s FY 2011–12 F-196 Report – Schedule for Determining School District Federal
Unrestricted Indirect Cost Rate Including Fixed with Carry-Forward Calculation for FY
2013–14.
In Report 1800 A, indirect costs were calculated by dividing selected administrative,
service, maintenance, and grounds expenditures in Program 97 – Districtwide Support, by
MEMORANDUM NO. 025-15 CNS
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June 1, 2015
total general fund direct expenditures less food expenditures. Each school district’s
unrestricted indirect cost rate was multiplied by the school district’s food service program
direct expenditures less capital outlay and food costs. The result was the indirect costs
allocable to the food services program. In FY 2013–14, the sum of the indirect costs
allocated to the food services program in all school districts equaled $34,172,489. This
amount represents 8.47 percent of the statewide food service expenditures.
Report 1800 B – Expenditures as a Percent of Revenue
Report 1800 C – Expenditures as a Percent of Revenue (Ranked)
Reports 1800 B and C display the percentage of Program 98 food services expenditures
to the total food services revenues in each school district.
Each report is organized in county/district order. Report 1800 C was sorted to display
those school districts with the largest net loss percentage to ones with the largest net gain
percentage.
Report 1800 D – Expenditures and Revenues per Equivalent Lunch
Report 1800 E – Expenditures and Revenues per Equivalent Lunch (Ranked)
Each report displays the expenditures and revenues per equivalent lunch served. Report
1800 D is presented in county/district order. Report 1800 E is sorted by the district with
the lowest expenditures per equivalent lunch to the highest.
Equivalent lunches were calculated by combining the following:
1. The number of lunches served.
2. The number of equivalent lunches derived from breakfasts. Breakfasts were
converted to equivalent lunches by dividing the number of breakfasts served by
1.50.
3. The number of equivalent lunches derived from snacks. Snacks were converted
to equivalent lunches by dividing the number of snacks served by three.
4. The number of equivalent lunches derived from á la carte revenue. For FY 2013–14,
á la carte revenue was converted to equivalent lunches by dividing á la carte
revenues by the sum of the following factors:
a. The free lunch reimbursement rate of $2.93 (for less than 60 percent eligible)
and $2.95 (for 60 percent or more eligible) effective July 1, 2012 through June
30, 2014.
b. The value associated with USDA foods of $0.2325.
MEMORANDUM NO. 025-15 CNS
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June 1, 2015
The expenditures per equivalent lunch for each school district was calculated by dividing
total expenditures by its equivalent lunch count.
Note: The above conversion rates meet the National Food Service Management Institute
(NFSMI) requirements.
Report 1800 F – Percentage of Food and Labor Costs to Total Revenues
Report 1800 F displays the percentage of each school district's total food and labor
expenditures to its total revenues. The districts are sorted from the lowest percentage to
the highest percentage.
Report 1800 G – Breakfast Participation
Report 1800 H – Lunch Participation
Report 1800 G displays the number of free, reduced-price, and paid breakfasts served
compared to the total student breakfast participation during the 2013–14 school year.
Report 1800 H displays the number of free, reduced-price, and paid lunches served
compared to the total student lunch participation during the 2013–14 school year.
Note: Adult lunches, adult breakfasts, snacks, and á la carte equivalent meals were
excluded from the number of meal counts in Reports 1800 G and 1800 H.
Report 1800 I – Percentage of Student Participation in the Breakfast and Lunch
Programs
Report 1800 J – Percentage of Student Participation in Breakfast Programs
(Ranked)
Report 1800 K – Percentage of Student Participation in Lunch Programs (Ranked)
Report 1800 I displays total breakfasts and lunches served in October 2013 compared to
the number of meals that potentially could have been served if each student ate one meal
each day in the month that it was offered. The potential number of students that could
have been served was calculated by taking each school offering a school breakfast or
lunch program, and multiplying each school’s enrollment by the number of breakfast or
lunch service days in October 2013.
The average daily participation (ADP) for October 2013 is also shown. The percentage of
students participating in breakfast and/or lunch programs was calculated by dividing the
sum of free, reduced-price, and paid student breakfasts/lunches claimed by the potential
number of meals possible.
MEMORANDUM NO. 025-15 CNS
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June 1, 2015
Report 1800 J displays the October 2013 breakfast participation data in Report 1800 I
ranked from the school district with the lowest percentage of students participating in
breakfast to the highest percentage. The average daily participation at breakfast for
October 2013 is also shown.
Report 1800 K displays the October 2013 lunch participation data in Report 1800 I ranked
from the school district with the lowest percentage of students participating in lunch to the
highest percentage. The average daily participation at lunch for October 2012 is also
shown.
OVERVIEW OF STUDENT PARTICIPATION AND REVENUE SOURCES
The graphs and charts in Attachment 2 provide an overview of the student participation
and revenue sources in school food service programs. Graph 1 shows the number of
free, reduced-price, and paid breakfasts served from FY 2004–05 through FY 2013–14.
Graph 2 shows the number of free, reduced-price, and paid lunches served from FY
2004–05 through FY 2013–14. Chart 1 shows the percentage breakdown of FY 2013–14
public schools food services revenue—including food service sales, local, state, and
federal sources.
If you have questions or comments concerning this memorandum, you may contact Jeff
Booth, Financial Analyst Supervisor, at (360) 725-6217, or via email at
jeff.booth@k12.wa.us.
The agency TTY number is (360) 664-3631. Bulletin attachments are available on the
agency website at www.k12.wa.us/bulletinsmemos.
EXECUTIVE SERVICES
Ken Kanikeberg
Chief of Staff
FINANCIAL RESOURCES
JoLynn Berge
Chief Financial Officer
CHILD NUTRITION SERVICES
Donna Parsons, MS, RD, SNS
Director, Child Nutrition Services
DP:sh
MEMORANDUM NO. 025-15 CNS
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June 1, 2015
Attachments:
Attachment 1—Report 1800 Series, Analysis of Food Service Operations
Attachment 2—Overview of Student Participation and Revenue Sources
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