Martha Nehus, MSE, RD, LD
Child Nutrition Coordinator
Benton Public Schools
November 6, 2013
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General Regulations Covering Food Service
Programs
Food Service Accounting
District Operated Programs vs Contracted
Programs
Staffing, Supervision, Training
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National School Lunch Program
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School Breakfast Program
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Afterschool Snack Program
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Seamless Summer Program
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Special Milk Program
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Fresh Fruits & Vegetables Program
USDA has an Agreement with the State
State has an Agreement with District
(School Food Authority or SFA)
District (SFA) administers the CN Programs
ADE agrees to provide funds to District
if USDA provides funds to ADE.
Yearly agreement between the District and ADE.
Still working on Original 2006-07 Agreement.
See 0riginal 2006-07 Agreement – Green Paper
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1. Comply with all of USDA Regulations
2. Maintain a nonprofit program
3. Limit cash to no more than 3 months or
have a plan to spend balance on allowable
costs.
4. Maintain a financial management system.
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5. Comply with USDA regulations for
financial management.
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6. Serve meals that meet meal pattern and
nutrient requirements of students.
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7. Price meals as a unit.
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8. Serve free and reduced price meals to
eligible students.
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9. Claim meals at the assigned rates. The
person that signs must confirm that claim
is accurate.
10. Count meals at the point of service by
eligibility category.
11. Submit claims according to regulations.
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12. Comply with:
Title VI Civil Rights Act 1964 Title
Title IX of Education Amendments 1972
Section 504-Rehabilitation Act 1973
Age Discrimination Act 0f 1975
“The U.S. Department of Agriculture prohibits discrimination
against its customers, employees, and applicants for
employment on the bases of race, color, national origin,
age, disability, sex, gender identity, religion, reprisal, and
where applicable, political beliefs, marital status, familial or
parental status, sexual orientation, or all or part of an
individual's income is derived from any public assistance
program, or protected genetic information in employment or
in any program or activity conducted or funded by the
Department. (Not all prohibited bases will apply to all
programs and/or employment activities.)
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13. Maintain records and submit reports on
nondiscrimination.
14. Treat all children the same regardless of
ability to pay.
15. Accept commodities.
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16. Meet state health standards.
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17. Use Commodities as much as possible.
18. Provide facilities for storing, preparing
and serving meals.
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19. Make records available for review by the
state agency or USDA.
20. Maintain applications retrievable by
school.
21. Retain records for 3 federal fiscal years
and 5 state school years.
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22. Provide State with enrollment and
eligibility information on October 1.
23. Maintain a drug free workplace.
24. Implement Wellness Policies of District in
compliance with PL 108-265
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25. Have a Food Safety Plan for each school
kitchen or serving site.
26. Comply with Arkansas Rules for Child
Nutrition Staff Certification Requirements.
(Commissioners Memo IA-05-094)
27. Participate in the Direct Certification
Process for Free Eligibles annually.
28. Meets requirements for two health
department inspections for each serving site
each year.
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DHS list of families receiving SNAP benefits
are matched with lists of children in the
district
These children are automatically approved for
free meals because their income has already
been verified
Districts required to make 3 matches per year
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A-1 Procurement
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A-2 Civil Rights
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A-3 Wellness Policy Checklist
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A-4 Food Safety Plan
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A-5 Health Inspection Statement
District’s choice of programs are indicated
by completion of:
 Schedule A Breakfast and Lunch
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Schedule B – Afterschool Snack
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Schedule C – Seamless Summer
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FFVP Separate Addendum to Agreement
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Schedule A for Breakfast and/or Lunch
Programs as part of this CN Agreement.
Schools may be added or deleted (as
needed) in writing from Superintendent.
District will notify CNU ADE in writing of
changes in Menu Planning Option,
Student and Adult Meal Prices, and
Changes of Signature Authority.
School Year SY 2011-12
SY 2012-13 SY 2013-14
Breakfast
Free
$1.51
$1.55
$1.58
Reduced
$1.21
$1.25
$1.28
Paid
$0.27
$.27
$0.28
Free
$2.77
$2.86
$2.93
Reduced
$2.37
$2.46
$2.53
Paid
$0.26
$0.27
$0.28
Lunch
 PERFORMANCE
BASED MEAL
PATTERN REIMBURSEMENT
6
CENTS FOR LUNCH MEALS
REGARDLESS OF STATUS
 RECEIVE
AS SEPARATE CHECK
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DISTRICT HAS TO CONTINUE TO COMPLY
WITH NEW MEAL PATTERN FOR BOTH
BREAKFAST AND LUNCH
RECEIVES REIMBURSEMENT UPON SUBMISSION
OF A CORRECT STUDENT LUNCH
REIMBURSEMENT CLAIM
AUTOMATICALLY CALCULATED WHEN TOTAL
STUDENT LUNCHES ADDED TO CLAIM
PAYMENT SYSTEM
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BEGAN MENU CERTIFICATION PROCESS LAST
OCTOBER BY SUBMITTING MENUS ON A USDA
WEBSITE
ADDITIONAL 6 CENTS ONLY AVAILABLE FROM
MONTH OF SUBMISSION
ADE CNU HAD TO VERIFY 25% OF SUBMITTED
MENUS WITH ON SITE VISIT
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21 ARKANSAS DISTRICTS DID NOT SUBMIT
MENUS LAST YEAR FOR CERTIFICATION
DID NOT AND WILL NOT RECEIVE THE
ADDITIONAL 6 CENTS
WILL BE REQUIRED TO SUBMIT THIS YEAR AND
WILL BE THE FIRST SCHOOLS TO HAVE
ADMINISTRATIVE REVIEW FROM ADE-CNU
THIS SCHOOL YEAR
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2003 Arkansas Act 1220
2007 National Institutes of Medicine (IOM)
published “Nutrition Standards for Foods in
Schools”
2008 IOM held hearings to discuss standards
in school meals
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2009 IOM made recommendations to USDA
for changes to lunch program
2009 Child Nutrition programs were notified
of proposed changes – given opportunity for
comment to USDA
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2010 Healthy Hunger Free Kids Act: Federal
legislation to reauthorize funding for
program and set policy for Child Nutrition
program meal pattern
BI-PARTISAN CONGRESS PASSED IT and
PRESIDENT OBAMA SIGNED IT
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2011 Clarification and interpretation of new
rules and regulations continue
2012-13 New rules in place for lunch
program
Dec 2012 Flexibility in Meat/Meat Alternate
and Grain Maximums for School Year 20122013
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April 2013 Extended Flexibility in Meat/Meat
Alternate and Grain Maximums for School
Year 2013-2014
June 2013 Proposed Rule on Nutrition
Standards for All Foods Sold in Schools
July 2014 New Breakfast Pattern
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More fruit ½ to 1 cup per day
More vegetables and inclusion of sub-groups
Dark green
Red/orange
Legumes
Starchy
Other
50% of grains must be whole grain rich until
next school year when 100% must be
Milk 1% white, flavored skim
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Calorie limits K-5, 6-8, 9-12
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Sodium restrictions
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Fat, saturated fat, and trans fat restrictions
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Meat/Meat Alternates 1 – 2 oz per day
Safety Net Reimbursement --- LUNCH ONLY
School Districts with 60% Free and Reduced
Participation in the previous year
Districts receive additional 2 cents/student
lunch
Free.................................. $2.95
Reduced Price ................. $ 2.55
Paid.................................. $0.30
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Safety Net List is provided by ADE CNU with
Commissioner’s Memo containing new
Reimbursement Rates as of July 1 each year
220 School districts on list this year
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Section 205 “Equity in School Lunch Pricing”
is a provision of the federal child nutrition reauthorization bipartisan legislation passed by
Congress in 2010 which amends the Richard
B. Russell National School Lunch Act. The law
requires that local education agencies
participating in the federal National School
Lunch Program ensure that schools are
providing the same level of support for
lunches served to students who are not
eligible for free or reduced price lunches (i.e.
paid student lunches).
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If the SFA/LEA weighted average price
charged for student lunches in the 2011-12
school year was less than $2.59, districts
required to increase the price a minimum of
4.93%.
SFAs that choose to contribute non-Federal
sources to the nonprofit school food service
account in lieu of raising paid lunch prices
must calculate the appropriate amount to
contribute.
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SFAs could have chosen to split the SY 201314 requirement by both raising paid lunch
prices and contributing funds from nonFederal sources.
Complete Paid Lunch Equity Tool (PLE Tool)
Must submit copy of the District Calculation
Results of PLE Tool with the Renewal
Agreement
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Severe Need Reimbursement: BREAKFAST ONLY
Individual schools with 40% Free and
Reduced Lunch Participation from second
preceding year (2011-12) receive additional
$ .31 reimbursement on all free and
reduced price breakfasts served during the
2013-2014 school year.
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Free Student @ $1.58 + .31 = $1.89
Reduced-Price Student @ $1.28 +.30 +.31
student payment =$ 1.89
Paid Student + .28 + 0 + $1.50 student
payment* = $ 1.78
*(Paid Student Amount is set by local school
board and may be less than federal
reimbursement)
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Breakfast in the Classroom
Grab and go kiosks
Breakfast after first period
All reimbursed at same rates but districts
may use non federal funds to help pay for
universal breakfast in the classroom.
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Provision 2 : Districts or individual schools
that serve high poverty populations (80%-90%
or more Free or Reduced) may serve
reimbursable meals at no charge to all
students. (Commissioners Memo FIN-11059)
Base Year: Applications are turned in and
eligibility is determined by usual means. All
students eat free but meal counts by category
are maintained.
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For next three years, all meals are served free
and only a daily aggregate count of meals is
maintained. Reimbursement claim is based
on % of free, reduced and paid students
established in Base Year.
Extension can be granted for additional 4
years if district can establish economic
conditions have not changed significantly
from Base Year.
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Since no money can be collected from
reduced or paid students, the district
commits to make up the difference between
federal reimbursement of free/reduced/paid
meals and student revenues received by
reduced or paid students.
Benefits:
Provides a climate where all students are on
equal status within cafeteria environment.
Eliminates yearly distribution and evaluation of
applications (except for base year)
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Cautions:
Paperwork to set it up
Not all schools qualify: findings with
Legislative Audit or CRE
Can’t change reimbursement percentages
even if population changes
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Any school with 40 percent or more
“identified students” can participate in CEO
Direct Certified, Migrant, Homeless, Foster
and other programs not found in Arkansas
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Everyone in the school can receive free meals
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Individual schools or district wide
1.
2.
3.
4.
Provide snacks to students that are 18 and
under
Provide regularly scheduled activities.
Must include education and enrichment
activities.
Claim reimbursement for snacks served after
school day.
5.
Charge no more than 15 cents for reduced
price snack.
6.
Meet snack pattern.
7.
Price snack as a unit.
8.
Serve free and reduced price snacks to all
students that qualify.
9.
Claim reimbursement at the assigned rate.
10. Claim only 1 snack per child per day.
11. Review 2 times a year with the 1st review
during the first 4 weeks.
12. Claims reimbursement as required.
13. Maintain all required records.
 Free:
$0.80
 Reduced: $0.40
 Paid: $0.07
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Area Eligible site- 50% or more of the
students enrolled are eligible for free and
reduced price meals. ALL SNACKS MAY BE
SERVED FREE.
Non Area Eligible site- less than 50% of the
students enrolled are eligible for free and
reduced price meals. SNACKS ARE CLAIMED
BY CATEGORY of free, reduced and paid.
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Schedule C for SEAMLESS SUMMER
PROGRAM as part of this CN Agreement.
Schools may be added or deleted as
needed in writing from Superintendent.
District will notify CNU ADE in writing of
changes in Menu Planning Option,
Student and Adult Meal Charges, and
Changes of Signature Authority.
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See Annual Commissioner’s Memo &
Comparison of ADE program to the DHS
program.
May provide any 2 meals (breakfast, lunch or
snack).
May serve all free if 50% or more are eligible for
free/reduced price meals.
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FIN-12-083
SFA’s are required to inform families of the
availability and location of Summer Food
Service Programs.
Goals of FFVP:
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Create healthier school environments by providing
healthier food choices,
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Expand the variety of fruit and vegetables children
experience
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Increase children’s fruit & vegetable consumption
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Make a difference in children’s diets to impact
present and future health.
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Addendum to CN Agreement for Fresh
Fruits & Vegetables Program as part of this
CN Agreement.
FFVP Addendum must be completed and
signed by ADE and the District prior to any
activities or obligations of FFVP federal
funds.
 USDA
pilot studies of FFVP indicate
positive changes in student
behavior with regard to increased
student selection of fresh fruits and
vegetables at home and at school,
thus impacting healthy lifestyle
choices.
Districts submit individual school grant
proposals stipulating:
 Plan of school educational and partnership
activities to use of funding at $50-$75
student/year for fresh fruit and vegetable
snacks during the school day
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Provide fresh fruits & vegetables to ALL
students in school at no charge
Provide students fresh fruits & vegetables
during the school day at times other than
meal periods. (In classrooms, at kiosks, or
during breaks during the school day.)
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Criteria for award will be weighted to give
priority to schools with 50% or more
Free/Reduced Eligibles
Upon award of FFVP Grants Districts will amend
the Agreement and Policy Statement.
Fresh Fruit & Vegetable Reimbursement Claim
must have invoices attached.
FFVP requires ANNUAL competitive grant
proposal for funding to continue.
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Make available only if other programs are not
available.
Serve milk free to eligible students.
Claim reimbursement at the assigned rates.
($0.20)
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P-1 Collection Procedures
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P-2 Packet with Application and Letters
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P-3 Media Release
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P-4 Child Nutrition Information Contact Sheet
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1. Serve meals free to children who are
eligible.
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2. Serve meals at a reduced price to children
who are eligible.
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3. Limit reduced price to: Lunch $.40,
Breakfast $.30 & Snack $.15
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4. Ensure equal treatment of children eligible
for free or reduced price meals.
5. Operate program so that no child shall be
discriminated against because of race, sex,
color, national origin, age or disability.
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6. Verify applications and maintain records
required.
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7. Follow appeal process.
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8. Designate a determining official.
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1. Determining Official
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2. Confirming Official
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3. Verifying Official
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4. Hearing Official
INCOME ELIGIBILITY GUIDELINES EFFECTIVE JULY 1, 2013 - JUNE 30, 2014
Free Meals - 130%
Household
size
Federal
Poverty
Guideline
Annual
Monthly
Twice
per
month
Every
two
weeks
Reduced Price Meals - 185%
Weekly
Annual
Monthly
Twice
per
Month
Every
two
weeks
Weekly
1
11,490
14,937
1,245
623
575
288
21,257
1,772
886
818
409
2
15,510
20,163
1,681
841
776
388
28,694
2,392
1,196
1,104
552
3
19,530
25,389
2,116
1,058
977
489
36,131
3,011
1,506
1,390
695
4
23,550
30,615
2,552
1,276
1,178
589
43,568
3,631
1,816
1,676
838
5
27,570
35,841
2,987
1,494
1,379
690
51,005
4,251
2,126
1,962
981
6
31,590
41,067
3,423
1,712
1,580
790
58,442
4,871
2,436
2,248
1,124
7
35,610
46,293
3,858
1,929
1,781
891
65,879
5,490
2,745
2,534
1,267
8
39,630
51,519
4,294
2,147
1,982
991
73,316
6,110
3,055
2,820
1,410
4,020
5,226
436
218
201
101
7,437
620
310
287
144
each add'l
person
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9. Submit a public release.
(This is the only time that the public receives
both Free & Reduced Income Scale)
10. Develop and distribute an application for
free and reduced price meals and process it
according to regulations.
11. Follow approved collection procedure.
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May NOT require on line application for free
and reduced meals
Must still provide paper applications for free
and reduced meals to all students
On line applications must be approved by
ADE prior to being sent out to families
Revise the Agreement and Policy Statement as needed -- keep it current as a picture of district operation.
Request PRIOR APPROVAL By CNU, ADE of any changes
to the CURRENT Free/Reduced Household
Application form, public release, letters to
households, etc.
All changes and amendments to Agreement and Policy
Statement Must Be Submitted for APPROVAL in
Writing.
(Maintain all records for 5 school years)
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Daily record of free, reduced price and
paid meals by serving site.
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Program income
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Program expenditures
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Reconcile with monthly bank statement
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Value of donations to program
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Program management records
◦ Menus and Production Records
◦ Nutritional information on all ingredients
◦ Nutritional information for pre-prepared products
◦ Standardized recipes
◦ Commodity records
◦ Applications
◦ Hearings on eligibility
◦ Documentation of verification
◦ Documentation of student/parent involvement
◦ EDIT CHECKS
Edit Check 1: completed daily, tracks # of
Eligible free and reduced students at each school.
Tracks all the additions and dropped students
Edit Check 2: compares attendance adjusted
eligibles to the number of meals claimed daily. If
number of free or reduced meals claimed on a
day exceeds attendance adjusted eligible number
a potential problem exists. Must document
reason for variance.
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Compliance with procurement regulations
On-site review of schools
Civil Rights complaints and resolutions
Claim for Reimbursement
Verification Summary
ERATE, Legislative Audit
Tracking Record of Discounts, rebates and
credits received by child nutrition program in
procurement process.
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Fiscal Accountability
Accountability of Income and Expense
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Accountability of Program Reimbursement
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Total Program Accountability
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Budget Considerations
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Sources of Revenue
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Allowable Program Expenses
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Students are Customers for Healthy Food
Choices (Also parents and staff)
Nutrition Standards and Meal Requirements
must be in compliance
Revenues are Controlled by School Boards and
Federal Reimbursements
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Menus Drive
◦ Food Costs
◦ Labor Costs
◦ Equipment Needs and other expenses
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Federal Reimbursement for student meals are
set as of July 1 each year
Paid Student Meal Prices are set by the School
Board (and USDA)
A la Carte sales in Secondary Schools
Adult Meal Sales
Catering of School Functions
NON-Cash Assets – USDA Commodities
NSLP State Match
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Amount of commodity money = number of
lunches served X $ .2325
Costs $4.09 per case to have food delivered
Costs $3.09 per case to pick up food from
warehouse in Van Buren
Can receive direct shipment of 250 cases of
one item: delivered for free
CHILD NUTRITION
ADMINISTRATIVE
GUIDANCE
CHILD NUTRITION UNIT
ARKANSAS DEPARTMENT OF EDUCATION

Example: Adult Meal Prices
Breakfasts and lunches served to teachers,
parents, administrators, custodians, and other
adults or non students not involved in the
direct provision of school meals must be priced
so that the payment is sufficient to cover the
FULL COST of the meal.
FNS Instruction782-5; 7CFR Parts 210 and 220.
◦ Adult Lunch Charges Must be:
◦ Amount of Reimbursement for Section 4 and 11 of the
National School Act PLUS (+)
 Amount of Per Meal Value of Commodity/Donated Foods and
Bonus Foods EQUALS (=) Adult Meal Price
 Example:
Regular $ 2.93 Safety Net $ 2.95
 PAL Rate
+ 0.2325
+
0.2325
Recommended Adult Charge $3.1625 or
$ 3.1825
 (Must add 6 cents if certified) $3.2225 or
$ 3.2425

Rounded to $ 3.25 per Adult Lunch
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Adult meal price for School Breakfast should
be at least the amount of the free
reimbursement rate for breakfast at the
school -$1.58
If severe need school: must be $1.89
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USDA Regulations determine allowable
expenditures or how the money can be
spent.
Child Nutrition non-profit food service
account funds CAN ONLY be spent for
Child Nutrition Expenses
Child Nutrition programs must provide
proof they are charging enough for alacarte items to pay for all costs associated
with production and service
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Section III. Financial Management
A. Claim For Reimbursement
B. Investing Child Nutrition Funds
C. Loans to the Programs
D. Revenue/Expenditure and
Non-allowable Costs
E. Capital Expense Exceptions
F. Separation of Funds for Federal Child
Nutrition Programs
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Bad Debts
Fines and Penalties
Legislative Expense or Direction
Capital Expenditures (if you can not take it to
a new facility, then you can not buy it with
food service funds)
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Buy American
Fresh Fruits & Vegetables Geographic
Preference Option
Farm to School
Tracking Discounts, Rebates and Refunds on
all procurement contracts
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Include a Buy American clause in all
procurement documents (product
specifications, bid solicitations, requests for
proposals, Price Quotation Sheets, purchase
orders, etc)
Require suppliers to certify the origin of
the product.
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Examine product packaging for identification
of the country of origin.
Ask the supplier for specific information
about the percentage of U.S. content in the
food product.
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School Districts may have the OPTION to give
Geographic Preference to local farmers to
purchase fresh fruits and vegetables.
Section 4302 of P.L. 110-246 amended section
9(j) of the Richard B. Russell National School
Lunch Act (NSLA) requires the Secretary of
Agriculture to encourage institutions operating
the Child Nutrition Programs to purchase
unprocessed locally grown and locally raised
agricultural products.
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Local Districts - Requires that allowable
costs paid from the nonprofit school food
service account be net of all discounts,
rebates, and applicable credits when paid.
State Agencies are required to monitor local
districts to ensure a system for tracking
discounts, rebates and credits is in place.
Legislative Audit – Compliance Issue
beginning SY 07-08 – will be checking to
see what districts have been doing to track
these items.
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CONTRACTS/PURCHASES :
Contract
Purchases for goods and services that are
considered allowable costs for the program
and that include rebates, discounts or
applicable credits must have:
1. an audit trail (documentation) to ensure
that these discounts, rebates and credits
have been given to the program on invoices
or bills from company
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2. a tracking system for discounts, rebates
and credits to ensure that CN payment of
invoices at the time of payment are net of
such rebates, discounts or credits. If the
company forgets to apply applicable credits,
it is the district’s responsibility to take these
credits, discounts and rebates on the
invoices.
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Does the local district have a Tracking System
of Rebates, Discounts or Credits to ensure
that these are applied to Child Nutrition
invoices prior to payment or at the time of
payment?
Has the district kept supporting
documentation to show compliance with
district tracking system?
 ADE
Commissioners Memo
FIN-14-025 Registration of
Food Service Management
Companies
 ADE – Commissioners Memo
FIN-14-024 Procurement of
Food Service Management
Company Services

FSMC wishing to contract for food services
with any SFA/LEA in Arkansas is required to
register with the ADE CNU.
Deadline September 30, 2013, 4:30 p.m.

Only registered companies allowed to
respond to Request for Proposals released by
LEA’s.
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SFA/LEA interested in procuring the services
of a FSMC must notify ADE of the intent.
(Deadline September 30, 2013)
FSMC employs food service workers instead
of the district and provides reimbursable
meal services to students.
School District must supervise contract to
ensure all rules/regulations being followed.
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The Agreement and Policy Statement
requirements and responsibilities of the
district cannot be transferred to the food
service management company.
Fiscal responsibilities and accountability for
operation of the federal child nutrition
program CANNOT be delegated by the district
to the FSMC.

Act 1220 of 2003 Requires:
1. Certification for Directors and
Managers of Child Nutrition Programs
2. Cannot pay salary and benefits for
uncertified directors and managers
out of foodservice funds.
3. Requires 10 hours of in-service training
each year for all employees.
Administrative Reviewers will ask for
documentation of this.
4. District level: Written evaluation of all
staff each year.
5. Tier II training for Director.
TIME CERTIFICATION FOR ALL
EMPLOYEES IN FEDERALLY PAID
PROGRAMS.
Documentation for Legislative
Auditors and Administrative
Reviewers

Time of great change and challenge for the
Child Nutrition Programs.

Questions: