FINANCE UPDATE JUNE 16, 2016 Note: This Dark Blue background color slide treatment is for projection and print for EXTERNAL Audiences. It may also be used for Internal Audiences when projected on screen. (Do not print this cover for internal audience hand-outs.)

Why do we report Commodities? How do we report Commodities? What are Commodities? Why do we report Commodities? How do we report Commodities? Resources for Commodities Commodity Training - September, 2013

WHAT ARE COMMODITIES? A commodity is a food donation provided by the USDA to the State Departments of Food Distribution, who in turn offer them to eligible Recipient Agencies like school districts. USDA Commodity Program instituted as a means of subsidy for: Government Programs: Child Nutrition, WIC, Senior Programs, Prisons, Head Start etc. Insured that excess products produced by farmers would be used. USDA purchases $1.3B in domestic agriculture annually. Commodity Training - September, 2013

WHAT ARE COMMODITIES? Quantities of commodity are determined by entitlement which is set by USDA. In the majority of cases, each school district receives a specific dollar amount of commodities based on the average daily participation or number of eligible national school lunch program meals served in the prior year. Commodity Training - September, 2013

WHAT ARE COMMODITIES? WHICH PROGRAMS ARE ELIGIBLE FOR COMMODITIES? NSLP (National School Lunch Program) SFSP (Summer Food Service Program) CACFP (Child and Adult Care Food Program) Commodity Training - September, 2013

WHAT ARE COMMODITIES? Frequently used commodity terms: Advance Diversion – process normally done in January for next school year to divert raw product to processors Bonus – commodities not included in entitlement dollars (still included in received and used numbers) Brown Box – non-processed cases of food, usually canned or frozen fruits & vegetables DOD (Department of Defense) Produce – fresh fruits and vegetables Entitlement – dollar amount given to district each year to spend on commodities Processed – raw product sent to processor and sent back as a finished product (i.e. beef sent to Pierre and sent back as hamburgers) Commodity Training - September, 2013

WHY DO WE REPORT COMMODITIES? Based on the 2009 USDA ruling we must credit clients based on commodities received For fixed price contracts, this change impacts the client invoice by crediting the commodities received monthly For cost of ops and MAC contracts, we show the amount received as a statistic on the client operating statement Commodity Training - September, 2013

HOW DO WE REPORT COMMODITIES? We use the following statistical account numbers for reporting commodities: 99992700 ENT COMMOD RECD 99992720 ENT COMMOD USED 99992780 ENT-COM REC LESS USE Commodity Training - September, 2013

HOW DO WE REPORT COMMODITIES? What happens when we report these statistics? When commodities received is reported, the amount is added to the Key Balance Sheet under 4860.6200 PPD CRDT COMMOD RECD and is credited on the client’s invoice. This does not effect SDX Sales or FC. When commodities used is reported, the amount is subtracted from the Key Balance Sheet under 4860.6200 PPD CRDT COMMOD RECD and SDX Sales is reduced. (SDX does not recognize commodities used in food cost on P&L) The amount on the Key Balance Sheet under 4860.6200 PPD CRDT COMMOD RECD should match your ending commodity inventory Commodity Training - September, 2013

Commodity Training - September, 2013

Commodity Training - September, 2013

Commodity Training - September, 2013

Commodity Training - September, 2013

HOW DO WE REPORT COMMODITIES? How do we calculate commodities received? Calculate the FMV (Fair Market Value) for commodities received in the month for the following items: Brown Box Commodities Processed Commodities DOD Produce Bonus Commodities Commodity Training - September, 2013

HOW DO WE REPORT COMMODITIES? How do we calculate commodities received? Use the method stated in your contract or by your State. November 15 file from USDA http://www.fns.usda.gov/fdd/pcims/Nov 15CommodityFiles.htm FMV on Invoice from State Report from State Website (CNIPS) End Product Data Schedule for processed commodities www.processorlink.com www.k12foodservice.com Commodity Training - September, 2013

REPORTING COMMODITIES RECEIVED Commodity Training - September, 2013

REPORTING COMMODITIES RECEIVED Commodity Training - September, 2013

REPORTING COMMODITIES RECEIVED Commodity Training - September, 2013

K12 Report www.k12foodservice.com (Smucker, Jennie-O, JTM, Tyson, Schreiber) Click on Acct Summary. Print this page for your commodity folder. Commodity Training - September, 2013

REPORTING COMMODITIES RECEIVED Commodity Training - September, 2013

Processor Link Report www.processorlink.com (Advance Pierre, Sunny Fresh, Chef’s Corner, Schwans) The Processor Link report includes the YTD total on the Home Page after you log in. Print this page for your commodity folder. Commodity Training - September, 2013

REPORTING COMMODITIES RECEIVED Commodity Training - September, 2013

DOD Produce Report Login on https://ffavors.fns.usda.gov/FFAVORS_WEB/USDAProduce/default.aspx Click on “Orders and Receipts” Click on your district Click on “Display Current Fund Balances” The total “Spent, Previous Orders” under the County Summary is the amount you should enter on D9 Print report for your commodity folder. Commodity Training - September, 2013

DOD Produce Report Commodity Training - September, 2013

REPORTING COMMODITIES RECEIVED Commodity Training - September, 2013

State Report Refer to your state specific directions on how to pull this report Some states will be reported on a monthly basis and some on a YTD basis depending on how your state reports the numbers. You will need to keep a running total YTD for states that report monthly. Commodity Training - September, 2013

REPORTING COMMODITIES RECEIVED Commodity Training - September, 2013

Other Commodity Reports If your district is using any other processor that isn’t included in Processor Link or K12, you will need to pull these reports as well. These reports will need to be totaled and enter the YTD amount on the blank lines. Commodity Training - September, 2013

REPORTING COMMODITIES RECEIVED Commodity Training - September, 2013

YTD commodity amounts from Operating Statement Commodity Training - September, 2013

REPORTING COMMODITIES RECEIVED Commodity Training - September, 2013

COMMODITIES RECEIVED REPORT Commodity Training - September, 2013

REPORTING COMMODITIES RECEIVED ON OSI Commodity Training - September, 2013

NEW UFS COMMODITY MODULE Commodity Training - September, 2013

HOW DO WE REPORT COMMODITIES? How do we value commodities in UFS? Brown Box/Bonus/DOD Produce Use account 60112012 Commodities- Delivery/Admin Charge for any shipping/fees for service charges on invoice (not included in inventory cost) Code the inventory item to account 60112015 District Commodities Used. Purchase Cost is $0 for inventory item Market Value is the FMV for inventory item Commodity Training - September, 2013

COMMODITY ITEM SETUP Commodity Training - September, 2013

HOW DO WE REPORT COMMODITIES? How do we value commodities in UFS? Processed Commodities Use account 60112012 Commodities- Delivery/Admin Charge for any shipping/fees for service charges on invoice (not included in inventory cost) Code the inventory item to account 60112011 Commodities-Processed. Purchase Cost is the amount paid on the invoice to the vendor for inventory item Market Value is the FMV based on the calculation from the End Product Data Schedule for inventory item Commodity Training - September, 2013

Commodity Training - September, 2013

HOW DO WE REPORT COMMODITIES? How do we report commodities in UFS? Processed Commodities Example for case of Pierre Hamburger Price on invoice is $22 Fee for service is $3.00 FMV from End Data Product Schedule is $25 Report the following: Purchase cost is $22 in inventory $3.00 to 60112012 when paying invoice Market value is $25 in inventory Actual value of the hamburgers is $47 Commodity Training - September, 2013

COMMODITY ITEM SETUP Commodity Training - September, 2013

COMMODITY LOCATION SETUP Commodity Training - September, 2013

COMMODITY LOCATION SETUP Commodity Training - September, 2013

ASSIGN ITEMS TO THE LOCATIONS Commodity Training - September, 2013

REPORTS Commodity Training - September, 2013

ENTER COMMODITY INVENTORY Commodity Training - September, 2013

Follow your State procedure for correctly reporting commodities RESOURCES Follow your State procedure for correctly reporting commodities Utilize your State Commodity Specialist if you have questions AF - 832-04 Commodity Training - September, 2013

RESOURCES – COMMODITY SPECIALISTS Commodity Training - September, 2013

REMINDERS P10 CLOSE AP REGISTERS FAR REPORTS AMP – FIXED ASSET CONFIRMATION ACTION PLANS IN E-VISION BUDGETS DUE JUNE 30 Commodity Training - September, 2013