1. Wednesday, October 29, 2014 4:00 to 5:00 p.m. Holiday Inn Hotel and Convention Center Stevens Point, WI 1

2.  Process: 1.Participating School Food Authorities (SFAs) enter bulk pound commitments to designated processors on annual order survey. 2.Final, revised bulk pound commitments are available for SFAs to view after mid-May. 3.After July, SFAs should verify all final bulk pound commitments have been deposited into their account by each processor. 4.Throughout school year, SFAs must monitor all direct diversion monthly activity. 2

3.  Participating SFAs enter USDA Foods bulk pound commitments on annual survey. 3

4. 4

5.  Final USDA Foods bulk pounds after adjustments are available approximately mid-May. 5

6. ADJUSTED POUNDS 6

7.  Participating SFAs compare all final bulk pound commitments to the processor’s inventory management system:  To ensure that the final bulk pound commitments have been deposited.  To verify the accuracy of the deposits entered. 7

8. Carryover Pounds SY2013-14 Commitment 8

9. SY2013-14 Allocations Carryover Pounds 9

10.  Basic areas for monthly monitoring: ◦ Verify number of cases ordered against what was received. ◦ Verify fee invoiced to ensure accuracy. ◦ Verify USDA pounds per case and that draw down occurred. 10

11.  Monitoring varies according to which value pass through method is being utilized.  Value Pass Through Method available: ◦ Fee-for-Service—Processor ◦ Fee-for-Service—Distributor ◦ Rebates/Refunds ◦ Net Off Invoice (NOI) 11

12.  Wisconsin Department of Public Instruction Example from SY2013-14  Tyson Chicken Nuggets: ◦ State Processing Program: ◦ 23,516 cases x 13.20/lbs per case = 310,412 lbs.  Poultry has white and dark meat deposits: ◦ 170,726.60 – white meat deposit (55%) ◦ 139,685.40 – dark meat deposit (45%) 12

13. White Meat Bank SY2013-14 Commitments/white meat 13

14. Dark Meat Bank SY 2013-14 Commitments/Dark Meat 14

15.  Using invoice from processor: ◦ Verify that the number of cases received match SFA’s order. ◦ Verify that the price per case on the invoice matches the bid price obtained by the SFA. 15

16. TOTAL CASES RECEIVED PRICE PER CASE 16

17. AMOUNT RECEIVED IN WAREHOUSE 17

18. TOTAL CASES RECEIVED PRICE PER CASE 18

19. AMOUNT RECEIVED IN WAREHOUSE 19

20.  Using the processor’s inventory management system (may be an electronic monitoring system or manual monitoring system): ◦ Verify number of cases received listed on invoice(s) matches number of cases shipped listed in system. ◦ Verify amount of pound draw down per case matches Summary End Product Data Schedule (SEPDS) for each product. ◦ Verify that pounds were draw down in inventory management system. 20

21. Product Code (2155) Draw down per case (13.20 lbs) 21

22. Total Cases Received (1572) Total pounds drawn down: 13.20 lbs/case x 1572 = 20,750.40 lbs. Product Code (2155) 22

23.  Using invoice from distributor: ◦ Verify that the number of cases received match SFA’s order. ◦ Verify that the price per case on the invoice matches the procurement price obtained by the SFA. This price includes the fee for service price plus distributor’s delivery fee. Ensure that the invoice does not include a separate delivery fee. 23

24. Processor Name and Product Description Number of Cases (6) Price per Case ($40.85) Invoice No. 24

25.  Using the processor’s inventory management system (may be an electronic monitoring system or manual monitoring system): ◦ Verify number of cases received listed on invoice(s) matches number of cases shipped listed in system. ◦ Verify amount of pound draw down per case matches Summary End Product Data Schedule (SEPDS) for each product. ◦ Verify that pounds were draw down in inventory management system. 25

26. Summary End Product Data Schedule (SEPDS) Product Code (9737) Bulk pounds draw down per case (31.07 lbs) Entitlement Value per Case ($71.07) 26

27. Total bulk pounds drawn down for all AdvancePierre purchases Total entitlement value draw down for number of cases purchased in April, 2014 (71.07/case x 67 cases) Bulk draw down per case/total draw down for 67 cases 27

28. Product Code (9737) Invoice Number (638573) Number of cases shipped (6) Shipping Details Screen in ProcessorLink Draw down per case of 31.07 lbs & total for 6 cases (31.07 x 6 cases = 186.42 lbs) Entitlement value: $71.07/case x 6 cases = $426.42 total 28

29.  Using invoice from distributor: ◦ Verify that the number of cases received match SFA’s order. ◦ Verify that the price per case on the invoice matches the commercial procurement price obtained by the SFA. ◦ File a rebate with the processor. 29

30. Number of cases shipped (1) Product Description Price per Case ($43.36) 30

31. Pounds per case purchased Product Code and Description 31

32.  Using the processor’s inventory management system (may be an electronic monitoring system or manual monitoring system): ◦ Verify number of cases received listed on invoice(s) matches number of cases shipped listed in system. ◦ Verify amount of pound draw down per case matches rebate form for each product. ◦ Verify that pounds were draw down in inventory management system. 32

33. Summary End Product Data Schedule (SEPDS) Product Code and Description Draw Down per Case (9.13 lbs) 33

34. Product Code and Description Total Cases (10) Pounds of draw down per case : 9.13 lbs/case x 10 cases = 91.30 lbs. 34

35.  Ensure that rebate funds are received from processor. 35

36.  Using invoice from distributor: ◦ Verify that the number of cases received match SFA’s order. ◦ Verify that the price per case and the USDA Foods value on the invoice matches the bid price obtained by the SFA. With NOI there are two line items on the distributor’s invoice:  The commercial bid price (including the distributor’s delivery fee).  Credit for the value of USDA Foods per case. 36

37. Number of cases (4) Product Description Price per case ($51.46) Entitlement Value per case ($27.62) 37

38.  Using the processor’s inventory management system (may be an electronic monitoring system or manual monitoring system): ◦ Verify number of cases received listed on invoice(s) matches number of cases shipped listed in system. ◦ Verify amount of pound draw down per case matches Summary End Product Data Schedule (SEPDS) for each product. ◦ Verify that pounds were draw down in inventory management system. 38

39. Product Code and Description. Bulk USDA Foods Pounds per Case (15.34 lbs per case) Entitlement Value per Case ($27.62/case) 39

40. Processor Link. Shipment Summary Screen Product Description and Product Number. 40

41. ProcessorLink: Shipment Details Invoice Number and Date No. of cases & total entitlement value (4 x $27.62/case = $110.48) Product Code (41728) Draw down per case/total for 4 cases 15.34 lbs/case x 4 cases = 61.36 lbs 41

42.  Throughout the school year, participating SFAs continue to monitor monthly activity for each designated processor. 42

43. 1.SFAs participating in direct diversion processing will enter bulk pound commitments to designated processors on the annual order survey. 2.After annual order survey closes, DPI balances statewide commitments into full truck loads. Adjustments are made by DPI in the online system. Final, revised pound commitments are available for SFAs to view after mid- May. 3.After July, SFAs should verify all final pound commitments against deposits made by each processor into the processor’s inventory management system. 4.Throughout the school year, SFAs must monitor monthly activity for each designated processor. 43

44.  If distributor will allow several orders, place all of your monthly direct diversion products on one order. SFA will then have one invoice per month for all direct diversion products, making verification easier.  Electronic inventory management systems: both companies (K-12 and ProcessorLink) offer training to SFAs on their own system. 44

45.  Dino Ante, 608-266-3615 antonio.ante@dpi.wi.gov  Laura Sime, 608-267-9119 laura.sime@dpi.wi.gov  Lynne Slack, 608-266-2596 lynne.slack@dpi.wi.gov  Jim Witecha, 608-267-9283 james.witecha@dpi.wi.gov 45