Food Service

1. Food Service September 4, 2019 Cheryl Goffus, SNS School Nutrition Regional Coordinator, Retired Department of Agriculture, NJ State Agency Consultant: Successful Solutions “to go” 856 313-4326 cgoffus@aol.com 1

2. Who is in the audience today? Let’s review the 3 survey questions • Number of years experience in public schools as a Business Administrator or an Assistant • What I currently know about school lunch operations and regulations • I have a SNEARS log on ID Group introductions 2

3. ASBO Course Objective To gain sufficient knowledge and experience to provide food services in an efficient and cost effective manner and to manage food service contracts 3

4. Cheryl’s training objective:Participants will • Have an overview of what is involved in the school lunch segment of a school district • Be able to list the sections within the Division of Food and Nutrition that deal with school lunch • Know how to access school lunch information provided by the Department of Agriculture, Division of Food and Nutrition 4

5. QUESTIONS? Questions are welcome at any time during this presentation. “When you are green you grow… when you are ripe you rot” We ALL learn new things every single day. Nobody knows everything! 5

6. Division of Food and Nutrition • School Nutrition • Main phone number is 609-984-0692 for program questions • You can use this number and ask to be transferred to the specialist of the day or to one of the following sections • USDA Foods • Child and Adult Care (dinner program) • Summer Feeding 6

7. School Nutrition • Breakfast • Lunch • Dinner • After school snack program (ASSP) • Summer feeding • Milk programs: SSKM(split session kindergarten milk): SMP school is ONLY in milk program • FFVP: Fresh fruit and vegetable program 7

8. WHERE IS INFORMATION? Department of Agriculture website nj.gov You can either click “agencies” You can log in with your login ID and password 8

9. SNEARS 2.0 School Nutrition Electronic Application and Reimbursement System: • Access to this information is available only to a select 5 people in a school district. Must gain a user ID and an authorization code to gain access to SNEARS. • SNEARS help desk number: 609-341-3817 • What information is available???????? 9

10. What is Food Service? • Develop menus, prepare and serve meals to students and staff in the schools of a district (breakfast, lunch, dinner, after school snack) • Provide catering services • Provide meals to other schools • Train, direct and evaluate food service staff in the schools • Ensure compliance with federal and state regulations • Complete all required record keeping 10

11. What is Food Service?(continued) • Follow procurement regulations • Complete RFP (request for proposal) for FSMC (food service management company) services as needed • Use maximum value of USDA foods offered to the district: • Warehouse • Processed foods • DOD (Department of Defense produce) 11

12. Eligibility Criteria • All public schools, nonprofit private schools tax exempt under 501(C)(3) of the Internal Revenue Code and residential child care institutions are eligible to sponsor a program • New sponsors may begin ONCE A YEAR • Participating sponsors receive cash reimbursement for free and reduced price student meals which is adjusted annually • And donated United States Department of Agriculture (USDA) food entitlement value which is based on the number of lunches served to children. 12

13. Participation Requirements Sponsors must annually complete an “Agreement” on SNEARS with the New Jersey Department of Agriculture (for both School Nutrition and USDA foods) that includes, but is not limited to, the following requirements: • Plan menus which follow the meal pattern guidelines for specific grade groupings which meet specific minimum standards for key nutrients and calories. • Claim reimbursement only for student meals served to children that meet the required meal pattern. 13

14. Participation Requirements (cont.) • Provide a free or reduced price lunch to any child from a household meeting criteria for eligibility, based on household size and income. (Agree to the requirements of the Policy for free and Reduced Price meals in SNEARS) • The program must be operated on a nonprofit basis solely for the benefit of all children within the school. 14

15. Pricing of Lunches • The price charged to paying child is established by the sponsor, but must be within the maximum prices established by the Bureau of Child Nutrition Programs. • Price of reduced price meals has a maximum that is allowed to be charged 15

16. Pricing of Lunches continued • The price charged to adults must cover all costs and, at a minimum, exceed the price of children's lunches by a margin established by the NJ Division of Food and Nutrition to compensate for the reimbursement and donated foods available only for children's lunches. • PLE (Paid lunch equity) tool must be completed prior to district getting the meal prices in the letter to parent approved by the state agency

17. Record Keeping • A reimbursement voucher is filed monthly with the New Jersey Department of Agriculture through SNEARS. • Must maintain current records to include, but not limited to: • applications for free and reduced price meals or CEP • direct certification, • edit check worksheets, • daily meal counts • daily income records, 17

18. Record keeping (continued) • Menus for ALL programs (even ASSP) • Production records for ALL programs • On site reviews for ALL programs • Standardized recipes, • Manufacturer's nutrition fact sheets for commercially processed foods, • Smart snack calculator for all a la carte items • Local wellness policy • Professional standards • Charge policy • Health inspections • HAACP program • And more………… 18

19. Record-Keeping (continued) • The required statistical and financial records supporting all reimbursement vouchers must be kept on file for a period of three years* following the fiscal year to which they pertain except that, if audit findings have not been resolved, the records shall be retained beyond the three year period as long as required for the resolution of issues raised by the audit. * 3 years is the department of Agriculture requirement for record retention. Department of Education is longer 19

20. Who prepares the food? • In house (self operating) • Outsourcing (FSMC ): A food service management company manages the food service program for a school district for a management fee. • From another school district (SFA to SFA) • From a commercial vendor Scenarios 2 through 4 require a contract be completed through E CAS 20

21. FSMC contract types:Fixed Price versus Cost Reimbursable ? • Both choices were offered by the State Agency for Base year 2019-2020 • What will happen in 2020-21? 21

22. In-House vs. Outsourcing • In-house • District employees • Salaries, benefits, insurance plus food and supply costs • Self-sufficient? Do revenues equal costs? • Outsourcing (Food Service Management Company) • Employees can be FSMC or district employees or combination • Direct costs (labor, food and supplies) + management fees • Guarantee a maximum loss, break even or profit 22

23. Procuring a Food Service Management Company (FMSC) • Evaluate food service operations • Prepare specifications(these are provided by the State: minimal changes can be made. These specs become the contract! • Advertise request for proposals • Receive proposals • Analyze, score and compare proposals • Award contract (base year) • Obtain and sign contract • Submit contract and required documentation to the State on ECAS 23

24. FSMC contract renewal decision • Make decision to renew by January each year • Management fee cannot exceed index rate when renewed • After a maximum of 4 renewal years, begin the RFP process again 24

25. District Responsibilities • Determine free and reduced price applications • Generate and retain Master Eligibility List • Conduct direct certification/verification • Review and approve menus • Establish an advisory committee 25

26. District Responsibilities (Continued) • Review USDA food utilization • Submit and certify monthly reimbursement claim after reviewing the edit check worksheets • Review monthly profit and loss statement • Establish Meal and a la carte prices 26

27. District responsibilities (continued) • District must perform no less than one on-site review of the breakfast AND lunch counting and claiming system • Must be completed by prescribed deadline • Must ensure the school’s claim is based on the counting system, as implemented, and yields the actual number of reimbursable free, reduced price and paid lunches, respectively, served for each day. • If problems are detected, must implement a corrective action plan • ASSP requires TWO (2) on site reviews. MUST use state agency forms 27

28. FSMC Services • Employee training • Menu components and portion sizes meet requirements • Proper collection methods • Acceptable counting and accountability methods • Support services: dietitian or chef • Analysis of trends and participation reports • Payroll • Nutrition Education • Promotions 28

29. Procurement Process • Ensure compliance with Federal regulations and the New Jersey Public School Contracts Law for district food services purchases. Procurement is complicated. Discuss with the district attorney. • Federal procurement regulations and state public contract law ( 18A:18A) must be followed • District must guarantee open and free competition 29

30. Procurement process continued • All currently registered FSMC must have opportunity to submit proposals • Note: NJDA provides a list of registered FSMCs • Watch the state agency webinar on FSMC procurement • Scoring criteria must be included so all FSMC are on a level playing field • Scoring criteria should identify all evaluation criteria and their relative importance • DO NOT use the sample scoring criteria supplied by the State Agency: write your own 30

31. Caution! • District cannot request and FSMC cannot offer “value added” incentives such as scholarships, donations, grants, etc. • FSMC can only offer to purchase equipment if district makes request in RFP • RFP must include detailed equipment specifications or technical requirements • District repayment procedures must be included • Equipment provisions must be for one year only, no assumed renewal 31

32. RFP Guidelines • RFP must be publicized • District must provide RFP and specifications to all FSMC who request them • In addition to publicizing, district may also solicit proposals from registered FSMC by direct contact – email or letters The State Agency now provides the RFP to districts. The RFP then becomes the contract. 32

33. Caution! • Overly responsive proposals cannot be considered in the evaluation • FSMC cannot offer goods and/or services that were not requested in the specifications provided by the district 33

34. Guarantees • Guaranteed break even • Guaranteed return (profit) • Guaranteed loss (subsidy) • Review guarantee conditions/assumptions affecting guarantee • Realistic? 34

35. Awarding the Contract • FSMC whose proposal based on scoring and ranking was most advantageous to district , price and other factors considered • Board approval (must include fees and guarantees in the board minutes) • One year term with 4 one-year renewals as long as terms and conditions are not substantially changed (material change) 35

36. Application for Approval of a School Lunch Program • Must use SNEARS (e CAS) • Schedule A • District information: • Name, address, county, congressional district, DUNS number, etc, etc • Dairy used, school category, school type, pricing policy, student information database, point of sale system • Administrative roles: names of district staff and their responsibilities with regard to school lunch program 36

37. Application for Approval of a School Lunch Program (cont.) • Schedule A (continued) • Site (school) Details • Name, address, enrollment, grade designation, grade level, type of food service, months of operation • Program participation ( breakfast, lunch, milk, after school) • Serving times • Collection and accountability methods • Serving area and offer vs serve • Service method • Price charged 37

38. Application for Approval of a School Lunch Program (cont.) • Agreement and Policy Certification • Agreement number is County/LEA number • Programs in which district participates • Determining officials (person who approves free meal applications) • Hearing official (hears appeals of determining official’s decisions) • Certification of Local Wellness/Nutrition Policy • Certify policy in place • Identify district Wellness Coordinator 38

39. USDA Foods Agreement in SNEARS • School Food Authority (SFA) is now called a recipient Agency (RA) • Entitlement value received 3 ways • Warehouse foods • DOD (produce) • Processing 39

40. Administrative Review Districts must understand the importance of having appropriate personnel attend relevant training sessions and watch webinars to assure ongoing compliance • 3 year cycle • Districts reviewed for 2019-20 have already been notified • Start process immediately: the resource management section is first • Districts will be trained on the process

42. Free and Reduced Lunch Applications • Direct Certification vs Voluntary Application • Direct Certification • List from school is run against SNAP/TANF lists for the municipality 4 times each year (or more if SFA chooses) • If eligible no need to complete an application • Reduces the verification number • Parent can decline free meals. 42

43. Free and Reduced Lunch Applications (continued) • Voluntary Application • Must meet income eligibility based on number in household • All household income must be reported • All children in household are covered by one application • Good for one year only; must apply each year • Determining official makes decision based on the information reported • Parent/Guardian can appeal to hearing officer 43

44. Free and Reduced Lunch Applications (continued) • Voluntary Application (continued) • Identify all people living in the household • Report income for each person • WATCH THE WEBINARS FOR APPLICATION APPROVAL AND DIRECT CERTIFICATION. • ATTEND HANDS ON TRAINING WHEN OFFERED 44

45. Meal counting and claiming • Counting meals: meals must be counted at the POINT OF SERVICE • Point of service: That point in the food service operation where a determination can accurately be made that a reimbursable free, reduced price or paid meal has been served.

47. Methods of Accountability • Computerized POS • Coded ticket • Coded roster • Tally

48. Point of Sale System • Each Student is provided an account and a passcode • All free, reduced and paid students are identified in the system • Students are identified at the cash register when they put in their passcode and the system indicates free, reduced or paid • System provides required reports • Parents may add money to the student’s account on line or the student may bring money to the cashier to add to their account. 48

49. Point of Sale System (continued) • Problem with students “charging” lunches and running up balances • Need to decide policy on “charging” • Recent legislation as to how a district handles “charges” 49

50. Menu Planning • There are specific menu pattern requirements for breakfast, lunch and after school snack. • Food items • portions • An incomplete menu for the month of the review or for the day of the review will result in an overclaim.