Managing FSMC Contracts NJ SNA – USDA-FNS April 2017

SFA’s Responsibilities Preparation of solicitation and contract documents Program Oversight Ensure food service operation is consistent with agreement with SA Resolve any audit/review findings Monitoring Conduct periodic on-site visits Retain signature authority Establish Advisory Board

SFA’s Responsibilities Retain control of food service Set all prices Communicate and enforce meal pattern adjustments Monitor refunds, rebates, discounts and credits Ensure FSMC maintains health certification Complete all SA Reports, including claim for reimbursement Retain title to and ensure FSMC utilizes and credits SFA for all USDA Foods received

SFA’s Responsibilities Develop 21-day cycle menu If approved, the SA may develop the menu; or If approved, FSMC may develop the menu if included in the solicitation Implement free and reduced-price policy

Contract Management Menu & Meal Pattern Reimbursable meals Compliance with OVS & competitive foods Daily production records Food meets specifications Menus are affordable and appeal to students

Contract Management Records Claim documentation Non-reimbursable meal documentation (i.e., adult meals) Revenue records by meal type (student meals, a la carte, etc.) Cost records for cost-reimbursable contracts, including transparency with rebates, discounts, credits and unallowable costs. Nonprogram revenue and cost, if applicable

Contract Management USDA Foods Reconciliation conducted at least annually Frequency of crediting and method (rebate/discount/etc.) are in line with contract Documentation and billing statements clearly show value Being sufficiently and appropriately used SFA is not charged in cost-reimbursable contracts

Contract Management Civil Rights Policies Adhering to requirements Appropriately refers any complaints to the SFA Policies Free and reduced price policy statement SFA policies

Reminders All FSMC contracts, renewals and amendments must be approved by SA prior to execution All records must be maintained for 3 years plus the current year (may need to retain longer if part of an audit)

Discussion