1. Understanding School Operations Profit and Loss Industry Information Session: Understanding School Operations Profit and Loss Monday, January 14 10:15 AM – 11:30 AM Facilitator: Gary Vonck Panelists: Dora Rivas Linda Stoll Julia Bauscher

2. Understanding Profit and Loss Dora Rivas, MS, RD, SNS Dallas ISD Executive Director Food and Child Nutrition Services

3. Learning Objectives  Implementing strong financial methods for a successful SN program  Attendees will leave with a thorough understanding of the importance of applying strong financial methods within a program involving multiple regulatory requirements

4. The Why is Obvious Efficient use of funds is critical to operations Monitoring of Profit and Loss helps in decision making A sustainable program assures JOB SECURITY!

5. What to Monitor Income by District and by Location – Reimbursements – Cash Receipts – A la Carte Sales – State Matching/subsidies Expenditures – Food – Labor – Non-food supplies – Capital Outlay – Operating expenditures (direct & indirect) – Losses Bottom Line

6. Factors that affect Profit & Loss Menu planning  Required menu pattern is the same but decisions around products purchased varies  Too many choices  Monitoring student meal participation  Pennies make a difference – they add up! Staff training  Management- Food ordering/receipt & storage, handling  Employee- preparation, production, batch-cooking and use of leftovers Monitoring  Compliance- skimping on serving sizes to reduce cost can result in non-compliance and student dissatisfaction  Food Quality- affects participation  Food overproduction and/or food waste affects bottom-line

7. Strategic Planning Cycle Dallas ISD FCNC Strategic Plan 2011-2015 Visioning Session/ Mission Statement SWOT Analysis Critical Issue Statements Goal Setting//Strategy and Action Step Development Balanced Scorecard Key Performance Indicators Annual Review and Update

8. Reports that help me Profit & Loss Monthly comparison (total cost & percentage of revenue by district and by school) – Comparison current month to same month previous year – Comparison of YTD this year to last year YTD Monthly Meals per Labor Hour by district and by school

9. Profit and Loss Report

10. Meals per Labor Hour Reports by District

11. Participation Trend

12. Meals per Labor Hour Reports by Campus

13. Fund Balance Cost of Operations Profitability Use of reserve funds – Cash flow – How much should be in reserves

14. Participation Trends

15. Participation Trend

16. THANK YOU

17. Understanding Profit and Loss Linda Stoll, MPH, SNS Executive Director, Food and Nutrition Services Jeffco Public Schools

18. Bottom Line – “Break Even” School Boards expect Food Service Programs to be self-supporting Increasingly, school districts charge Food Service Programs for “services” provided by the district – HR; Payroll; Maintenance; AP; Trash; Utilities Direct Charge for specific services Indirect charges - % of budget

19. Profit and Loss Statement is a measure of success Against previous month Against same month, previous year Against budgeted numbers – Government Accounting works different than “business Accounting” – need to “meet the budget”.

20. District P & L Go to spread sheet #1

21. Compare to last year Go to spread sheet #2

22. Look at specific area of district Go to spread sheet # 3

23. Look at specific School Go to spread sheet #4

24. Against budget Go to spread sheet #7

25. Plate Cost An important number to our program is “plate cost” We know how much money we receive for each meal that we serve We need to know how much it costs us to produce one meal – Food costs – Labor costs – Indirect costs

26. Plate cost District wide – spread sheet # 5 Site – spread sheet # 6

27. CDE- NUTRITION UNITDistrict1420 REQUEST FOR MEAL PRICE INCREASE WORKSHEET - (NSLP & SBP)School Year2012-2013 As of October 2012 National School Lunch Program CFDA: 10.555 Chart of Accounts Program 3100ObjectEXPENDITURES 0630Food & Milk 1,093,138 0100, 0200Labor (Salaries & Benefits) 3,156,925 0300, 0400, 0500, 0600, 0740, 0800, Other (Nonfood, small equipment) (2,279,467) *Total Costs 1,970,596*Per Plate Cost1.89 Determining Meals Served To StudentsJuly 2012 - June 2013 Breakfasts Lunches/Ala Carte/Snacks Breakfast & Lunch97,883742,415 Snacks06,475 Ala Carte0184,539 Central Kitchen - Charters55010,352 Summer Feeding00 Total Meals Served98,433943,781 * - These amounts do not include depreciation or commodity expense When reporting to CDE for future price increases, depreciation and commodities should be left in the expenses calculation

28. Participation comparisons Look at impact of menu changes Look at impact of enrollment changes Look at impact of marketing strategies

29. Jeffco – Elementary Breakfast

30. Jeffco – Secondary Breakfast

31. Jeffco – Elementary Lunch

32. Jeffco – Secondary Lunch

33. THANK YOU

34. Jefferson County Public Schools SCHOOL AND COMMUNITY NUTRITION SERVICES Louisville, KY Julia Bauscher, SNS Director

35. Overview 101,000 students 65% Free/Reduced 144 school cafeterias; central kitchen/warehouse 825 employees 61,500 Lunch ADP 35,000 Breakfast ADP NSLP, SBP, SFSP, BIC, USDA FFVP

36. Gain/Loss Extensive report by location, by level, generated by coordinator records and reports Detailed participation information Detailed expense information Detailed revenue information Utilized by SCNS administrators to monitor school performance and target areas for improvement

37. Gain/Loss Snapshot

39. Other Reports Summary Profit/Loss for Program – updated monthly Summary Claim for Reimbursement – updated monthly Monthly/Annual Report for COO focusing on major KPIs; “War Room data” Others as needed/requested

40. School Breakfast Participation

41. School Lunch Participation

42. Lunch Participation by Eligibility

43. Breakfast Participation by Eligibility

48. QUESTIONS?