1. Food Service Management Company Oversight State of New Jersey School Nutrition Programs December 2011

2.  As of 2010-2011 school year:  746 Local Education Agencies in NSLP  Includes public, private, and RCCI  415 LEAs contracted with a FSMC  Translates to 56% of programs operated by a FSMC  17 registered FSMC  3 national; 14 local  33% of LEAs contract with the national companies  59% of LEAs contract with three of the local companies New Jersey Stats

3. 1.Mandatory registration meeting first week in December each year 2.Prototype contracts and addenda with required federal and state language provided to the FSMC 3.Final template contracts/addenda to be used by FSMCs are sent to SA for approval 4.Only contracts/addenda with SA approval can be used for the particular school year Annual FSMC Registration

4.  Each FSMC template contract/addendum is reviewed by two staff  Each is examined for the following:  No change to Prototype required language  Proper terminology/language for sections left blank for completion by the FSMC:  Fee set-up  Guarantee wording  Conditions (instructed to include every possible condition) Annual FSMC Registration

5.  After all FSMC prototype contracts are approved, a directory of registered companies is provided for LEAs, no later than Feb. 1 each year.  Directory also provides information on where FSMCs have done business, and where they are willing to do business, and any conditions, if applicable Annual FSMC Registration

6.  LEA Business Administrators invited to annual workshops - early February  Detailed information on proper procedures for procuring FSMC  Information on roles of LEA versus roles of FSMC  LEAs instructed on prototype contract procedures Annual Training

7.  Every LEA must submit their executed FSMC contract/addendum and other related documents for SA approval  SA reviews for the following:  That the approved prototype is executed  That no changes in required language have been made Final LEA-FSMC Contract Approvals

8.  If either the LEA or FSMC desires to make changes in the State Agency approved contract/addendum, they must submit a change request form  Must indicate where change is made and provide justification for the change  Original signatures required from LEA and FSMC  Change request must be approved by SA, prior to contract/addendum being executed Prototype Contract Change Requests

9.  LEA must submit a form certifying they have not made changes to the SA approved prototype contract/addendum  Original signatures of both LEA and FSMC required  FSMC contract approval is a component of the annual Child Nutrition Programs agreement process  SA staff maintain logs to track years of contract renewals and % increase in fees. FSMC Contract Approval

10.  Part of annual LEA audit requirements  LEA audit compliance includes specifically:  Procurement requirements regarding discounts, rebates, and other applicable credits  Crediting of commodities to the LEA Fiscal Oversight

11.  Three staff, who also do CRE/SMI reviews, oversee annual process of FSMC registrations and contract approvals  Part-time legal counsel assists with contract language, regulatory citations, and issues/questions as they arise Staff Organization