1. Managing FSMC Contracts
NJ SNA – USDA-FNS
April 2017

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

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

9. 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)

10. Discussion