Paid Lunch Equity and Non-Program Foods Revenue

ARTs Conference August 13, 2014

Department of EducationDivision of Program Support

Bureau of Nutrition Programs and Services

Kathryn GM Hodges, Program Specialist IV

Guidance Memos supporting Healthy, Hunger-Free Kids Act 2010

June 13, 2011 SP 39-2011Q&As regarding Paid Reimbursable Lunch Revenues (7CFR

210.14(e)) and non-reimbursable food sales (7CFR 210.14(f))

March 19, 2012 SP 22-2012Instructions for School Year 2012-2013

January 2, 2013 SP 19-2013Instructions for School Year 2013-2014 clarification

February 21, 2013 SP 25-2013Instructions for School Year 2013-2014

November 6, 2013 SP 1-2014Instructions for School Year 2014-2015

What do I do?

Where do I start?

Each year’s calculation is based on the previous October’s claim figures.

You will need:-the number of PAID

lunches-the amount charged for

PAID lunches

First, pull the October, 2010, and the October, 2013, information and enter it, by school and meal price, on the following, applicable, tabs.

Please note, that you’ll always need the October 2010 data. This was the starting point of the PLE regulation.

Be sure to keep track of which meal counts represent

which schools.

(The form does not allow you to type in the name of the school.)

You’ll need to keep track of the various schools

Carry the $2.08 from the 10-11 tab over to the Unrounded Requirement Finder tab in the PLE Tool.

The system will calculate that the $2.08 weighted average price needed to go up to $2.35 for School Year 2013-2014.

SY 14-15 Non Federal Calculator-This calculates the amount non-federal,

per meal, contribution.

This is a commitment from the School Board that, rather than raising the price to the student, they will cover it by a transfer from a non-federal funding source. The State Agency would need to see a transparent transfer that equals the number of paid meals sold during the school year times the commitment.

SY 14-15 Split Calculator-This calculates the per meal increase

as well as an increase of non-federal sources.

This is a commitment from the School Board that, rather than raising the price to the student for the total amount, they will raise it a bit and cover the balance of the increase by a transfer from a non-federal funding source. The State Agency would need to see a transparent transfer that equals the number of paid meals sold during the school year times the commitment.

Each year’s PLE Tool should be saved for 3+ the current year.

Each year, the SAU/District will report to the State Agency:

-The price of the most sold meals

-The amount of the required increase

-The amount of the actual increase

Starting with SY 14-15, the completed PLE tool will be a required attachment to the annual application.

Please note that the use of the

PLE Toolis required.

Also, please note, that any required increase MUST be made, either by an increase of the meal price to the student or by a commitment by the School Board to use non-federal dollars to make up the difference.

USDA does not require that a price to a student be increased more than 10 cents in any given year.

If a school district does increase more than 10 cents, that is their decision.

Doing Nothing is NOT an option.

Any questions on the PLE?

Now, onto:

Non-Program Foods Revenue

What is the point of this?The tool is to help you determine

if you are making enough revenue to cover the cost of the items that are being sold outside of a reimbursable meal.

Some items to consider are chips and extras, as well as a cheeseburger sold as a la carte, versus a cheeseburger sold as a reimbursable meal.

One Way to Separate Costs:

Use Cycle MenusCost out each meal on the menu Identify the food invoicesMultiply the number of meals x the cost

to get the Cost of Reimbursable Meals foods

Subtract the Cost of Reimbursable Meals foods from the total Food Invoices

Result equals the Cost of Non-Program foods

What to look for:Be aware that, if you purchase something

for $1.00, you sell it for at least $1.00.Use the Tool to help you price in the

future. That $1.00 item would have to be sold for at least $1.60 (Price x 1.57, then rounded)

There is no such thing as a “loss leader” in the meals program. Pricing something for less than it costs, just to get the kids in the door, will cause you to be out of compliance.

Any questions on the Non-Program Foods Revenue Tool?

Contact InformationIf you should have any questions,

please contact:

Cheri F. White atCheri.White@doe.nh.gov

(603) 271-3860or

Kathryn GM Hodges at Kathryn.Hodges@doe.nh.gov

(603) 271-3861