1. Food Service September 5, 2018 Cheryl Goffus, SNS
Retired Regional Coordinator,
Department of Agriculture, NJ State Agency
Consultant: Successful Solutions “to go”

2. Training objective; participants will
Be able to list the sections within the Division of Food and Nutrition
Know how to access information
Have an overview of what is involved in the school lunch segment of a school district

3. QUESTIONS?
Questions are welcome at any time

4. Division of Food and Nutrition
School Nutrition
USDA Foods
Child and Adult Care
Summer Feeding
Main phone number is

5. Mailing address for regular mail:
New Jersey Department of Agriculture Division of Food and Nutrition School Nutrition Programs P.O. Box 334 Trenton, NJ
Call for the correct address for overnight delivery

6. School Nutrition Breakfast Lunch Dinner After school snack
Summer feeding
Milk programs (SSKM: SMP)
FFVP

7. WHERE IS INFORMATION?
SNEARS : School Nutrition Electronic Application and Reimbursement System: Access to this information is available only to a select 5 people in a school district. Must gain a user ID and an authorization code to gain access to SNEARS
Certifier
Alternate certifier
Submitter
Alternate submitter
Other user
Department of Agriculture website: nj.gov

8. What is Food Service?
Develop menus, prepare and serve meals to students and staff in the schools of a district
(breakfast, lunch, dinner, after school snack)
Provide catering services
Provide meals to other schools
Train, direct and evaluate food service staff in the schools
Ensure compliance with federal and state regulations
Complete all required record keeping

9. What is Food Service?(continued)
Follow procurement regulations
Complete RFP (request for proposal) for FSMC (food service management company) services as needed
Use maximum value of USDA foods offered to the district:
Warehouse
Processed foods
DOD (Department of Defense produce)

10. Eligibility Criteria
All public schools, nonprofit private schools tax exempt under 501(C)(3) of the Internal Revenue Code and residential child care institutions are eligible to sponsor a program
New sponsors may begin ONCE A YEAR
Participating sponsors receive cash reimbursement for free and reduced price student meals which is adjusted annually and donated United States Department of Agriculture (USDA) food based on the number of lunches served to children.

11. Participation Requirements
Sponsors must annually complete an “Agreement” on SNEARS with the New Jersey Department of Agriculture (for both School Nutrition and USDA foods) that includes, but is not limited to, the following requirements:
Plan menus which follow the meal pattern guidelines for specific grade groupings which meet specific minimum standards for key nutrients and calories.
Claim reimbursement only for student meals served to children that meet the required meal pattern.

12. Participation Requirements (cont.)
Provide a free or reduced price lunch to any child from a household meeting criteria for eligibility, based on household size and income. (Agree to the requirements of the Policy for free and Reduced Price meals in SNEARS)
The program must be operated on a nonprofit basis solely for the benefit of all children within the school.

13. Pricing of Lunches
The price charged to paying childis established by the sponsor, but must be within the maximum prices established by the Bureau of Child Nutrition Programs.
Price of reduced price meals has a maximum that is allowed to be charged
The price charged to adults must cover all costs and, at a minimum, exceed the price of children's lunches by a margin established by the NJ Division of Food and Nutrition to compensate for the reimbursement and donated foods available only for children's lunches.

14. Record Keeping
A reimbursement voucher is filed monthly with the New Jersey Department of Agriculture through SNEARS.
Maintain current records to include, but not limited to, applications for free and reduced price meals, direct certification, edit check worksheets, daily meal counts and income records, monthly menus, production records, standardized recipes, and manufacturer's nutrition fact sheets for commercially processed foods, smart snack calculator for all a la carte items.

15. Record-Keeping continued
Local wellness policy
Professional standards for foodservice employees

16. Record-Keeping (continued)
The required statistical and financial records supporting all reimbursement vouchers must be kept on file for a period of three years following the fiscal year to which they pertain except that, if audit findings have not been resolved, the records shall be retained beyond the three year period as long as required for the resolution of issues raised by the audit.
All records must be available for administrative review and/or audit by the New Jersey Department of Agriculture and the United States Department of Agriculture.

17. In-House vs. Outsourcing
District employees
Salaries, benefits, insurance plus food and supply costs
Self-sufficient? Do revenues equal costs?
Outsourcing (Food Service Management Company)
Employees can be FSMC or district employees or combination
Direct costs (labor, food and supplies) + management fees
Guarantee a maximum loss, break even or profit

18. Procuring a Food Service Management Company (FMSC)
Evaluate food service operations
Write specifications
Advertise request for proposals
Receive proposals
Analyze, score and compare proposals
Award contract
Obtain and sign contract
Submit contract and required documentation to the State on ECAS

19. Procuring a Food Service Management Company (continued)
Make decision to renew
After a maximum of 4 renewal years, begin process again
Note: A food service management company manages the food service program for a school district for a management fee.
Fixed Price versus Cost Reimbursable ?

20. District Responsibilities
Determine free and reduced price applications
Generate and retain Master Eligibility List
Conduct direct certification/verification
Review and approve menus
Establish an advisory committee
Review monthly profit and loss statement
Review USDA food utilization
Submit and certify monthly reimbursement claim after reviewing the edit check worksheets

21. District Responsibilities (Continued)
Establish Meal and a la carte prices
Ensure compliance with Federal regulations and the New Jersey Public School Contracts Law for district food services purchases
Local Agency Procurement Review—Food Services Department Purchases by Department of Agriculture

22. FSMC Services Employee training
Menu components and portion sizes meet requirements
Proper collection methods
Acceptable counting and accountability methods
Support services: dietitian or chef
Analysis of trends and participation reports
Payroll
Nutrition Education
Promotions

23. Procurement Process
Federal procurement regulations and state public contract law ( 18A:18A) must be followed
District must guarantee open and free competition
All currently registered FSMC must have opportunity to submit proposals
Note: NJDA provides a list of registered FSMC

24. Procurement process continued
Watch the state agency webinar on FSMC procurement
Scoring criteria must be included so all FSMC are on a level playing field
Scoring criteria should identify all evaluation criteria and their relative importance
DO NOT use the sample criteria supplied by the State Agency: write your own

25. Caution!
District cannot request and FSMC cannot offer “value added” incentives such as scholarships, donations, grants, etc.
FSMC can only offer to purchase equipment if district makes request in RFP
RFP must include detailed equipment specifications or technical requirements
District repayment procedures must be included
Equipment provisions must be for one year only, no assumed renewal

26. RFP Guidelines RFP must be publicized
District must provide RFP and specifications to all FSMC who request them
In addition to publicizing, district may also solicit proposals from registered FSMC by direct contact – or letters

27. Caution!
Overly responsive proposals cannot be considered in the evaluation
FSMC cannot offer goods and/or services that were not requested in the specifications provided by the district

28. Guarantees Guaranteed break even Guaranteed return (profit)
Guaranteed loss (subsidy)
Review guarantee conditions/assumptions affecting guarantee
Realistic?

29. Awarding the Contract
FSMC whose proposal based on scoring and ranking was most advantageous to district , price and other factors considered
Board approval (must include fees and guarantees in the board minutes)
One year term with 4 one-year renewals as long as terms and conditions are not substantially changed (material change)
Management fee cannot exceed index rate when renewed

30. Application for Approval of a School Lunch Program
Must use SNEARS
Schedule A
District information:
Name, address, county, congressional district, DUNS number, etc, etc
Dairy used, school category, school type, pricing policy, student information database, point of sale system
Administrative roles: names of district staff and their responsibilities with regard to school lunch program

31. Application for Approval of a School Lunch Program (cont.)
Schedule A (continued)
Site (school) Details
Name, address, enrollment, grade designation, grade level, type of food service, months of operation
Program participation ( breakfast, lunch, milk, after school)
Serving times
Collection and accountability methods
Serving area and offer vs serve
Service method
Price charged

32. Application for Approval of a School Lunch Program (cont.)
Agreement and Policy Certification
Agreement number is County/LEA number
Programs in which district participates
Determining officials (person who approves free meal applications)
Hearing official (hears appeals of determining official’s decisions)
Certification of Local Wellness/Nutrition Policy
Certify policy in place
Identify district Wellness Coordinator

33. USDA Foods Agreement in SNEARS
School Food Authority (SFA) is now called a recipient Agency (RA)
Recipient Agency Attachment Form
Mailing Address
Delivery Locations
Identify FSMC making commodity decisions
School Board Authorized Trucker for Commodities (if applicable)
Off Site Storage (if applicable)

34. Free and Reduced Lunch Applications
Direct Certification vs Voluntary Application
Direct Certification
List from school is run against SNAP/TANF lists for the municipality 4 times each year (or more if SFA chooses)
If eligible no need to complete an application
Reduces the verification number
Parent can decline free meals.

35. Free and Reduced Lunch Applications (continued)
Voluntary Application
Must meet income eligibility based on number in household
All household income must be reported
All children in household are covered by one application
Good for one year only; must apply each year
Determining official makes decision based on the information reported
Parent/Guardian can appeal to hearing officer

36. Free and Reduced Lunch Applications (continued)
Voluntary Application (continued)
Identify all people living in the household
Report income for each person
WATCH THE WEBINARS FOR APPLICATION APPROVAL AND DIRECT CERTIFICATION.
ATTEND HANDS ON TRAINING WHEN OFFERED

37. National School Lunch Program On-Site Review
District must perform no less than one on- site review of the breakfast AND lunch counting and claiming system
Must be completed by prescribed deadline
Must ensure the school’s claim is based on the counting system, as implemented, and yields the actual number of reimbursable free, reduced price and paid lunches, respectively, served for each day.
If problems are detected, must implement a corrective action plan

38. Point of Sale System
Each Student is provided an account and a passcode
All free, reduced and paid students are identified in the system
Students are identified at the cash register when they put in their passcode and the system indicates free, reduced or paid
System provides required reports
Parents may add money to the student’s account on line or the student may bring money to the cashier to add to their account.

39. Point of Sale System (continued)
Problem with students “charging” lunches and running up balances
Need to decide policy on “charging”
Recent legislation as to how a district handles “charges”

40. In conclusion……
Read the memos and messages on SNEARS to stay informed. These can change daily.
Send employees to all training provided: watch webinars
“Trust no one”….. “Or trust but verify”