Certification of Compliance with New Meal Pattern Requirements

1. Certification of Compliance with New Meal Pattern Requirements May 10, 2012 - 3:00pm In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, gender (male or female), age, or disability. To file a complaint of discrimination, write USDA, Director, Office of Adjudication, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call toll free (866) 632-9992 (Voice).  Individuals who are hearing impaired or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339; or (800) 845-6136 (Spanish). USDA is an equal opportunity provider and employer.

2. Purpose • Interim rule related to Performance-based Reimbursement “6 cents rule”

3. Presenters • Pam Sheets • Doris Sargent • Leslie Otts • Lynn Harvey

4. Agenda • Background • Certification - SFA Responsibilities • Certification - State Agency Responsibilities • SY 2012-13 Validation Reviews • Administrative Reviews and Ongoing Compliance

5. Background Pam Sheets

6. Background - HHFKA • Requires SFAs implement the updated meal patterns (rule published January 26, 2012) • Provides performance-based reimbursement for SFAs that demonstrate compliance with updated meal pattern – this includes both lunch and breakfast • Additional 6 cents reimbursement is available October 1, 2012 • All schools within the SFA must qualify for the SFA is not eligible for the additional 6 cents

7. Background - Interim Rule In order for a SFA to be certified to receive the additional 6 cents: • SFA submits certification documentation to State agency • State agency makes a certification determination within 60 days • Certification will be delayed if the documentation submitted by the SFA is incomplete

8. Background - Interim Rule • Some aspects of the meal pattern are phased in over several years • SFAs must document compliance with those requirements in effect at time of certification • SFAs must document compliance with both breakfast and lunch

9. Certification Doris Sargent

10. Certification - Definition • Paper and electronic documentation submitted to the State agency by the SFA to demonstrate compliance with new meal pattern requirements • Documentation must include both breakfast and lunch • State agency reviews and approves or denies documentation for certification • Certification is a one-time process

11. Certification Options Option 1: SFA submits one week menus, a certification worksheet and nutrient analysis Option 2: SFA submits one week menus, a certification worksheet and modified nutrient assessment All information for certification will be submitted to the state agency

12. Certification – Option 1 • SFAs must submit: • One week of menus for each menu type offered • Detailed certification worksheet (under development by USDA at this time; available in June) • Nutrient analysis of calories and saturated fat for each menu type using a USDA-approved software

13. Certification – Option 2 • SFAs must submit: • One week of menus for each menu type offered • Detailed menu worksheet • Modified Nutrient Assessment of calories and saturated fat for each menu type • Modified nutrient assessment will serve as a proxy for a nutrient analysis • USDA will provide the modified nutrient assessment forms and the detailed menu worksheets in June.

14. What will you need to complete the Certification Work Sheet? Getting Started: • 1 week menu (5 days) • Portion size for all reimbursable meal items • Contribution information for each menu item such as CN labels, USDA Fact Sheets, Food Buying Guide • Production Records

15. What will you need if you use the proxy nutritional assessment? • SFAs must provide calorie and saturated fat information for all entrée items, side items with grains and/or meat/meat alternates, and desserts. • SFAs do not need specific calorie or saturated fat information for milk, fruits, or vegetables. Estimates for these components have been pre-programmed. • SFAs that have nutrient analysis software may still choose the modified nutrition assessment option if desired.

16. Certification Documentation • Menu Type: For each certification option SFAs must submit one week* of each menu offered (for both breakfast and lunch) within the SFA, by age grade group • Example: If an SFA serves an elementary, middle and high school menu for lunch and one menu for breakfast, the SFA must submit four menus and four menu worksheets. * A week means a normal school week and does not include holidays.

17. Certification Documentation • USDA will provide State agencies and SFAs with a prototype certification worksheet and modified nutrient assessment tool in June • The section will provide additional guidance and training for these materials once we receive them.

18. Certification Documentation Early submission (before Sept 30, 2012) SFAs may submit documentation for compliance reflecting planned meal service for October or November 2012

19. Certification Documentation Example: If an SFA submits certification documentation in August 2012, the documentation for compliance must reflect meals planned in October or November 2012

20. Certification Documentation- Attestation • As part of certification, SFAs must attest in writing that: • They are in compliance with all current meal pattern requirements • Documentation is representative of the ongoing meal service for every school within the SFA. • The minimum required food quantities for all meal components are available to students in every serving line • This attestation will eventually become part of the Annual Renewal Agreement

21. SY 2012-13 Validation Reviews Leslie Otts

22. SY 2012-13 Validation Reviews Validation Review: An on-site review conducted during the 2012 – 2013 School Year by the State agency to confirm that a certified SFA has been and continues to meet the updated meal patterns and dietary standards. Validation reviews are only required in School Year 2012-13

23. SY 2012-13 Validation Reviews • During a validation review, the Child Nutrition Services Section is required to: • Observe a meal service for each type of menu that was certified • Review the school production records for observed meals • Review the documentation submitted for certification

24. SY 2012-13 Validation Reviews • State agencies must conduct on-site Validation Reviews of at least 25 percent of SFAs certified to receive the additional 6 cents • State Agencies are required to conduct a Validation Review of all large SFAs in the state • During the Validations Review, the State Agency will review one school that represents each type of menu certified • All Validation Reviews must be completed by June 30, 2013

25. SY 2012-13 Validation Reviews • If the State agency is unable to validate the certification documentation, the State agency must assess: • Whether corrective action can occur immediately; and • The longevity and severity of the problems • These assessments determine whether an SFA can earn the 6 cents in the future and what fiscal action occurs in the current month and prior months

26. SY 2012-13 Validation Reviews • If corrective action does occur immediately, the 6 cents is not “turned off” for future months • If corrective action does notoccur immediately, the 6 cents must be “turned off” for future months

27. SY 2012-13 Validation Reviews • SFAs whose 6 cents is turned off for future months as a result of the Validation Review must re-apply for certification • SFAs may re-apply for certification at any time

28. SY 2012-13 Validation Review Recap • State agencies are required to conduct a validation review of 25 percent of certified SFAs in SY 2012-13, including all large SFAs • State agencies must assess the severity and longevity of problems found during validation reviews • SFAs who have 6 cents turned off must re-apply for certification

29. Preparing for an a Validation Review Validation Review Training is scheduled for: Tuesday, June 19, 2012 1:00 – 5:00 Koury Convention Center Greensboro, NC

30. Administrative Reviews, Validation Reviews and Ongoing Compliance Lynn Harvey

31. 2012-13 Administrative Reviews The Child Nutrition Services section will conduct Coordinated Reviews (CRE) as scheduled for the 2012 – 2013 school year. The section will also conduct: • Additional Administrative Reviews (AAR) • Follow-up reviews • CREs “for cause”

32. 2013-14 Administrative Reviews Final Meal Pattern Rule • Begins School Year 2013-14 • 3 year Administrative Review cycle • Modified Performance Standard 2 (SMI) Nutrition Provisions • Breakfast included in administrative review

33. 2013-14 Administrative Reviews Food for thought…the section is required to prioritize the Administrative Reviews in a manner that moves any SFA that is not certified for the additional 6 cents to the top of the Administrative Review schedule at the beginning of the 2013 – 2014 review cycle.

34. Administrative Review - Fiscal Action (6 cents) • Compliance with the “6 cents rule” will be monitored in all future Administrative Reviews. • Any violation of Performance Standard 2 requirements set forth in the new lunch pattern will result in a “turning off” of the 6 cents reimbursement unless immediate corrective action occurs. • If the SFA is able to correct a Performance Standard 2 violation immediately, the section will not turn off the 6 cents reimbursement for lunch.

35. Administrative Review versus a Validation Review – Fiscal Action Administrative Review - new review that combines the elements of the former CRE and SMI Reviews Validation Review – on-site review conducted by the section to validate the documentation submitted by the SFA to ensure the SFA is actually meeting the meal patterns and the dietary standards

36. Administrative Review versus a Validation Review - Fiscal Action • Since the 6 cents reimbursement is earned for lunches, SFAs cannot lose 6 cents for breakfast violations during an Administrative Review • Current regulations (7 CFR 210.18) address the required fiscal action for missing meal components, including the breakfast program

37. Administrative Review versus a Validation Review – Fiscal Action • A SFA can lose 6 cents reimbursement for a breakfast violation during the 2012 – 2013 Validation Review. • However, a SFA cannot lose the 6 cents reimbursement for breakfast violations during an Administrative Review.

38. Ongoing Compliance • The section will provide technical assistance and training to SFAs that violate the lunch and breakfast requirements after the initial certification. • If the 6 cents reimbursement is turned off, it can be “turned back on” when the SFA demonstrates they are back in compliance with the lunch requirements. • An on-site review is not required for the 6 cents to be turned back on.

39. Ongoing Compliance • It is important to note that when non-compliance with the new meal pattern is found during a 2012-13 Validation Review, the SFA must re-apply for certification. • However, in the future, when the Validation Review becomes part of the Administrative Review, and the 6 cents reimbursement is “turned off,” the SFA need not go through the entire certification process again. The SFA must submit appropriate corrective action to document they have complied with the regulations.

40. What next? Review SP 31-2012 “Questions and Answers Related to Certification of Compliance with Meal Pattern Requirements in the NSLP” Stay tuned for additional information and guidance

41. What next? Remember…we are all in this together and together we will make this transition successfully in North Carolina. Additional training for you and your central office staff will be forth coming. Please continue to ask questions as they arise.

42. Thank you for participating in today’s Webinar. Do you have questions?