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Paid Lunch Equity

Paid Lunch Equity. Karen Franklin, SNS Distance Learning March 6, 2014. Paid Lunch Equity – What?. Paid Lunch Equity (PLE) is required based on Section 205 of the Healthy Hunger Free Kids Act of 2010 (HHKA)

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Paid Lunch Equity

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  1. Paid Lunch Equity Karen Franklin, SNS Distance Learning March 6, 2014

  2. Paid Lunch Equity – What? • Paid Lunch Equity (PLE) is required based on Section 205 of the Healthy Hunger Free Kids Act of 2010 (HHKA) • Requires School Food Authorities (SFAs) to ensure sufficient funds are provided to the non-profit school food service account for lunches served to students not eligible for free or reduced price meal benefits (i.e.: paid students)

  3. Paid Lunch Equity – Why? • Why would congress make this part of the HHFKA? • NSLP and SBP are programs set up to help serve low income households by feeding their children at a free or reduced rate (based on income of household) • Meals prepared for paid students cost the same amount to prepare as meals for free or reduced priced eligible students • Many SFAs had a very low paid student meal price • Therefore the F/R student meal income was supporting paid student meals • This aspect of HHFKA helps to offset the costs of other parts of the act

  4. Paid Lunch Equity • This means that the income SFAs receive from student paid lunches should be, at a minimum the difference between the free reimbursement and the paid reimbursement. • 2013-14 school year: • Free lunch reimbursement $2.93 • Paid lunch reimbursement .28 • Difference $2.65 • The income for student lunch meals should be at least $2.65 per meal for the 2013-14 school year

  5. Paid Lunch Equity • Paid lunch prices in Arkansas for 2012-13 school year varied between $1.00 and $3.50 with an overall paid lunch price average of $1.95 • SFAs can only be required by federal regulation to raise the paid lunch revenue by a maximum of $.10 per school year; therefore SFAs that have a lower paid lunch revenue will take longer to get to the required paid lunch equity • SFAs may increase prices more than the minimum $.10 per school year (will get credit toward future year PLE requirement)

  6. Student paid meal income example • Free student reimbursement: $ 2.93 • Paid student reimbursement: .28 • State Avg paid student lunch price: 1.95 • Total paid student lunch income: $ 2.23 • Therefore, the free student lunch income is more than the paid student lunch income by $.70

  7. Paid Lunch Equity • There are three ways to meet the Paid Lunch Equity requirement, if the SFAs is required to increase paid lunch revenue: • Increase paid lunch prices to students • District contributes ‘non-federal funds’ to the cover the required paid lunch revenue increase • Combination of increase paid lunch prices and non-federal funds contribution

  8. Paid Lunch Equity • FIN-14-047 Paid Lunch Equity Memo – must go to ADE website to get the memo and the PLE tool attachment. • www.arkansased.org • Commissioner’s Memo in column on left of home page • Find memo number FIN-14-047 • PLE Tool is attachment in the memo, save the PLE to your computer!!

  9. PLE Tool • NEWPLE tool is published each year by USDA. ADE CNU publishes the PLE tool in a Commissioner’s Memo. • The completed and signed PLE tool is required to be submitted to ADE CNU as part of the Renewal of Agreement and Policy Statement each school year. • DO NOT send the PLE Tool now!! Send with Renewal of Agreement in May 2014. • The signature page of the PLE tool must be signed by the district Superintendent and Child Nutrition Director.

  10. PLE Tool – What is Needed • In order to complete the PLE tool for the 2014-15 school year you will need the following information: • Number of paid student lunches served in October 2013 • Number of each paid lunch at each price category – if more than one paid lunch price charged to students • 2013-14 completed PLE tool – specifically the 2013-14 Report page, Section 1, Box A – this is the UNROUNDED amount of paid lunch revenue required for the 2014-15 school year OR • SY 2010-11 Weighted Average Price (based on paid lunches served in October 2010)

  11. PLE Tool – What is Needed • If the district was required to increase paid lunch revenue in 2013-14 and chose to contribute non-federal funds instead of raising paid lunch prices then you will need: • The amount of non-federal funds contributed to the child nutrition program in the 2013-14 school year • Total number of paid lunches served to students in the 2012-13 school year

  12. PLE Tool – What is Needed • If the district is not considering using non-federal funds to meet the PLE requirement then there is no need to complete: • Tab SY 14-15 Non Federal Calculator; OR • Tab SY 14-15 Split Calculator

  13. PLE Tool – How to Complete You will only be allowed to enter information into the salmon or pink colored cells on this PLE Tool Excel spreadsheet. Step 1: Find the tab that says: Unrounded Requirement Finder • Unrounded Requirement Finder – Enter the 2013-14 Average Weighted Price Requirement from the 2013-14 PLE Tool, Report, Box A • Be sure to use the UNROUNDED REQUIREMENT not the rounded requirement that may have actually been used by the district

  14. PLE Tool – How to Complete Can only enter information in the salmon or pink colored box Tab that says Unrounded Requirement Finder

  15. Enter the UNROUNDED Price Requirement as determined by the 2013-14 PLE Tool

  16. PLE Tool – How to Complete Step 2: Find the tab that says SY 13-14 Price Calculator Enter the number of paid student lunches served at each paid lunch price category during October 2013 • If all student paid lunches in the district are at the same price then only one line on this page will be completed • If the district charges different paid lunch prices for different schools or age groups then will be completing one line for each price category served

  17. Tab SY 13-14 Price Calculator

  18. Example of district with one paid price category Example of a district with all paid meals at the same price category

  19. Example of a district with two paid price categories Example of district with two paid price categories Weighted Average Price for the district based on number of meals served at each price category

  20. PLE Tool – How to Complete Step 3: Look at the SY 2014-2015 Report, Box B to see if paid lunch revenue needs to be increased. How to know? • Is the amount indicated in Box B greater than or less than the SY 13-14 Price Calculator indicates? • Greater than? – DO NOT need to increase paid lunch revenue for 14-15 • Less than? – DO need to increase paid lunch revenue for 14-15

  21. Is Box B greater than or less than SY 13-14 Price Calculator indicates? If Box B is GREATER THAN 13-14 Price Calculator then District is NOT REQUIRED to increase Paid Lunch revenue If Box B is LESS THAN 13-14 Price Calculator then DISTRICT IS REQUIRED to increase Paid Lunch revenue Look at Box B – is this amount more or less than the amount determined on SY 13-14 Price Calculator

  22. No Need to Increase Paid Lunch Revenue? • If the SY 2014-2015 Report, Box B is LESS THAN the 2013-14 Weighted Average Price and the district chooses to NOT increase paid lunch revenue: • Print the PLE Tool (entire workbook) • On the Signature Page mark the line that says “IS NOT required to increase paid lunch revenue for the 2014-15 school year” • Superintendent and Child Nutrition Director BOTH sign the signature page • Send ALL printed pages to ADE CNU as part of the Renewal of Agreement for the 2014-15 school year (May 2014)

  23. Choose “IS NOT required…” Superintendent and CND sign Return to ADE CNU as part of Renewal Agreement 2014-15 in May 2014

  24. Required to Increase Paid Lunch Revenue? • If the district IS REQUIRED to increase paid lunch revenue then need to determine how that revenue increase will be accomplished. There are three options: • Increase paid lunch prices to students • Contribute non-federal funds • Combination of price increase and non-federal funds contribution

  25. Increase Student Prices? How to Know the Amount Needed to Increase • If the district determines it will raise paid student lunch prices and would like to make calculations to decide how much to raise the prices at each price point, then need to use the 2014-15 Price Calculator • Enter the number of paid lunches served in October 2013 at each lunch price category • Change the lunch prices to determine what the new Weighted Paid Lunch Average will be with the anticipated price changes • If not sure about what to change the price to then play around on this page with different price amounts until the weighted average meets the new requirement

  26. Enter the number of paid lunches served October 2013 at each price category on the SY 14-15 Price Calculator page

  27. Enter paid lunch prices to try to determine the paid price increases needed to meet the ROUNDED 2014-15 Play around with these paid lunch price numbers to get to the rounded price requirement (at a minimum)

  28. Increasing Paid Lunch Prices? • If the district determines that it will increase paid lunch prices to students: • Choose the tab for SY 2014-2015 Report • On pink drop down box in middle of page choose Increase SY2014-15 average weighted price • Based on the information entered on the SY 14-15 Price Calculator the remainder of this page will be completed

  29. If increasing student paid meal prices click on the drop down box and choose “Increase SY2014-2015 average weighted price”

  30. If choose the increase price option in the drop box then boxes A and B below will automatically complete based on information entered on the SY 14-15 Price Calculator

  31. What are non-federal funds? Financial support from non-Federal sources must be cash for direct support for paid lunches, including but not limited to: • per-lunch reimbursements for paid lunches provided by States, counties, school districts and others (not the federal reimbursement received from the claim form); • funds provided by organizations, such as school-related or community groups to support paid lunches; • any portion of State revenue matching funds that exceeds the minimum requirement established in 7 CFR 210.17 and that is provided for paid lunches; or • any proportion attributable to paid lunches from direct payments made from school district funds to support the lunch service; e.g., a pro-rata share of general funds used to support the lunch service.

  32. SY 14-15 Non-Federal Calculator • If need to determine how much in non-federal funds would be needed to not increase paid lunch prices then go to tab SY 14-15 Non-Federal Calculator • Enter the weighted average price from the 2013-14 Price Calculator • Enter the total number of paid lunches served in 2012-13 school year (from district YTD) • Enter the amount of non-federal funds contributed to the non-profit school food service account during school year 2013-14 (if any) • The result will be “annual non-federal source contribution requirement 2014-15” – this is the amount the district would have to contribute in order to not increase paid lunch prices

  33. Increase Revenue through Non-Federal Funds If the district determines that it will increase paid lunch revenue through Non-Federal Funds please complete the following steps: • Choose the tab for SY 14-15 NonFederal Calculator • Enter the current weighted average price paid for 2013-14 based on the SY 13-14 Price Calculator • Enter the TOTAL number of paid lunches served in the district for the ENTIRE 2012-13 school year • Enter the TOTAL amount of non federal funds contributed to child nutrition for the entire 2013-14 school year

  34. SY 14-15 NonFederal Calculator

  35. Enter the 2013-14 weighted average price as calculated on the SY 13-14 Price Calculator

  36. Enter the total number of paid lunches served for the entire 2012-13 school year

  37. Enter the dollar amount of non federal funds contributed to child nutrition for the entire 2013-14 school year If the amount contributed is LESS than the non federal funds required the calculator will determine the amount of non-federal funds that will need to be contributed in 2014-15 to meet the non-federal funds requirement

  38. Enter the dollar amount of non federal funds contributed to child nutrition for the entire 2013-14 school year If the amount contributed is MORE than the non federal funds required the calculator will determine the amount of non-federal funds that will Be credited or carried forward for the 2015-16 school year to meet the non-federal funds requirement

  39. SY 2014-2015 Report for Non Federal Funds Calculations • When contributing non federal funds go to the tab SY 2014-2015 Report • In the pink drop down box choose “Contribute Non-Federal sources for SY 2014-2015” • If the SY 14-15 NonFederal Calculator indicates that more non-federal funds are needed to meet the 14-15 requirement this amount of money will need to be contributed to child nutrition during the 14-15 school year • The 2014-15 required contribution WILL NOT show up on this 2014-2015 Report page

  40. Indicate “Contribute Non-Federal sources For SY 2014-2015” If the district has not contributed enough non-federal funds during 2013-14 to cover the requirement for 2014-15 then the amount needed to be contributed from non-federal sources DOES NOT show up on this page The district MUST look at the amount on the SY 14-15 NonFederal Calculator to determine the amount of non-federal funds that should be contributed for the 2014-15 school year

  41. SY 2014-2015 Report for Non Federal Funds Calculations • If the SY 14-15 NonFederal Calculator indicates that more non-federal funds were contributed to child nutrition than were needed to meet the requirement the amount of credit that will be carried over to the 2015-16 school year will be indicated on this page • are needed to meet the 14-15 requirement this amount of money will need to be contributed to child nutrition during the 14-15 school year • The 2014-15 required contribution WILL NOT show up on this 2014-2015 Report page

  42. Indicate “Contribute Non-Federal sources For SY 2014-2015” If the district has contributed more non-federal funds during 2013-14 to cover the requirement for 2014-15 remaining credit carried forward to SY 2015-16 will be indicated on this form

  43. Split Calculator • The Split Calculator is used if the district will do both – contribute non-federal funds AND increase paid lunch prices • If the district does want to use the Split Calculator, please call our office for further guidance • This form is complicated and since so few districts will choose this option we will handle this on a case by case basis

  44. SY 2014-2015 Report • Make sure that the SY 2014-2015 Report is completed prior to printing the PLE Tool • Choose the appropriate drop down box • Increase paid meal prices • Contribute non federal funds • Combination of increase paid prices and contribution of non federal funds

  45. Signature Page • Based on the information on the SY2014-15 Report complete the Signature Page: • Increase in paid lunch revenue required (how) • Increase paid lunch prices • Contribute non-federal funds • Combination of increase paid lunch prices and contributing non-federal funds • No paid lunch revenue increase required • Must be signed by the district superintendent and the district child nutrition director.

  46. On the Signature Page tab If the district is required to increase page lunch revenue indicate the method this will be done If the district is not required to increase paid lunch revenue mark this line Both the Superintendent and Child Nutrition Director must Sign and date

  47. What to do now? • After the PLE Tool is completed SAVE IT TO YOUR COMPUTER!!! • Print the entire PLE tool workbook • Complete the signature page (indicate if need to increase, if so how, signed by both superintendent and child nutrition director) • HOLD onto this until Renewal of Agreement for 2014-15 (May 2014) • Send the completed, printed, entire workbook, with both signatures as part of Renewal Agreement

  48. Print Entire Workbook

  49. Revising the Renewal Agreement • If the district will increase student paid lunch prices that needs to be reflected on the Schedule A submitted as part of the Renewal Agreement. • If the new meal price has not been determined or voted on by the school board prior to submitting the Renewal Agreement then: • submit the Renewal with the PLE signed stating that the district will increase prices, however with the old prices still on the Schedule A • When the new prices are official then send a REVISED Schedule A to your Area Specialist to update the Agreement.

  50. Revising the Renewal Agreement • ANYTIME the Renewal Agreement (including the Schedule A) changes those changes MUST BE SUBMITTED to ADE CNU • The Renewal Agreement is our contract with the district that allows the district to have the free and reduced price meal program. All aspects of the Renewal are relevant to that contract and MUST be updated anytime changes are made

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