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Smithtown School Lunch Program Update May 7, 2014 Business Affairs Meeting.

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Presentation on theme: "Smithtown School Lunch Program Update May 7, 2014 Business Affairs Meeting."— Presentation transcript:

1 Smithtown School Lunch Program Update May 7, 2014 Business Affairs Meeting

2 Financial Review 2008/20092009/20102010/20112011/20122012/2013 Revenues 2,438,315 2,551,025 2,660,817 2,725,540 2,519,761 Expenses 2,434,697 2,642,304 2,628,747 2,686,436 2,710,934 Total Income/(Loss) 3,618 (91,279) * 32,070 39,104 (191,172) Expense Breakdown Total Benefits 301,652 335,709 380,194 420,111 469,698 % Benefits Increase/(decrease)11.29%13.25%10.50%11.80% ERS 59,30683,326 126,134 165,210 195,928 % ERS Increase/(decrease)40.50%51.37%30.98%18.59% * Loss was due to start up costs for the Boars Head sandwich line

3 Financial Review Revenue TrendBenefits Trend

4 Comparison of Reimbursable Meals and A La Carte Meals School YearEnrollment # of Reimbursable Meals Served % Increase / (decrease) in Reimbursable Meals Served Revenue in Reimbursable Meals # of A La Carte Pieces Sold A La Carte Revenue 2008/200910,844522,693 $ 1,000,8521,007,007 $ 1,002,857 2009/201010,862545,4364% $ 1,085,3401,028,895 $ 1,018,382 2010/201110,810578,6606% $ 1,137,3111,040,225 $ 1,005,682 2011/201210,623558,142-4% $ 1,236,2611,016,361 $ 974,246 2012/201310,314428,282-23% $ 883,5771,006,838 $ 1,117,459 * A La Carte are items that are sold individually such as drinks, snacks, and incomplete meals

5 Projected 2013/2014 Financial Information ActualProjected 2012/20132013/2014Difference Revenues 2,519,761 2,576,502 56,741 Expenses 2,710,934 2,704,370 (6,564) Total Income/(Loss) (191,172) (127,868) 63,305 * For the 2013/14 school year a la carte items were added back to the menu. As of 3/31/14 the revenue generated by these sales were: ITEMSQUANTITYREVENUE SNAPPLE 15,887 $ 19,879 ARIZONA ICE TEA 13,072 $ 16,345 BLACK & WHITE COOKIE 15,614 $ 11,720 ARIZONA ICE TEA-ELEM 6,608 $ 6,614 $ 54,558

6 Internal Audit Due to the loss in 2012/2013 the district wanted our internal auditors, an external entity, to review our policies and procedures Agreed Upon Procedures Audit No significant findings – Smithtown’s lunch program is suffering from same problems as other food service operations in New York (increase in regulations, increase in benefit/salary costs, and decreased participation)

7 Internal Audit The audit produced 5 recommendations. We will highlight recommendation #1. Recommendations 2-5 were already implemented by the school lunch program. Recommendation #1 – develop a list of alternative operational plans. Our response/options are: 1.Increase school lunch price for 2014/15 a.Option 1: Increase price $0.25 » Elementary Price = $2.60 » Secondary Price = $2.85 – Increase revenue approximately $100,000-$110,000 b.Option 2: Increase price $0.15 in 2014/15 and $0.10 in 2015/16. » Elementary Price = $2.50 (for 2014/15) » Secondary Price = $2.75 (for 2014/15) – Increase revenue approximately $60,000-$65,000 14/15 and $40,000- $45,000 in 2015/16

8 Internal Audit Paid School Equity Requirement Meal Prices# of Meals ServedRevenueAverage Price $2.35 26,098$61,330.30 $2.60 22,402$58,245.20 Totals 48,500$119,575.50$2.47(#meals/$income) Average lunch price is $2.47 X inflation factor of 2.27% = $2.53 (Cost of Living Adjustment) Additional 2% increase = $2.53 X 2% = $2.58 (Fixed % to adjust the reimbursement rate for the next year) Free Reimbursement rate = $3.0499 minus paid reimbursement of.3999 $3.0499$2.65 $0.3990-$2.58 $2.65$0.07 Target meal price Difference in target meal price/our avg lunch price

9 Internal Audit Other District’s Pricing CHILD NUTRITION PRICE SURVEY LUNCH FREE/RED DISTRICTELEMMIDDLEHIGH% BABYLON2.502.75 14.0% BAYPORT-BLUE POINT2.853.00 1.0% COLD SPRING HARBOR2.753.00 < 2% HEWLETT-WOODMERE2.602.70 12.9% LOCUST VALLEY2.502.75 8.0% SAYVILLE2.602.85 8.9% SMITHTOWN2.352.60 7.0% SOUTH HUNTINGTON1.752.75 39.5% SOUTHAMPTON2.502.75 31.0% THREE VILLAGE2.252.75 5.0%

10 Internal Audit Recommendation #1 – develop a list of alternative operational plans. Our response/options are: 2.100% of vending machine profits should be given to school lunch. Currently they only receive 45% a.$10,000-$18,000 in additional revenue 3.If 100% of the vending machine commissions can not be given, the vending machines should be turned off during school lunch hours. a.The current vending machine contract with Answer Vending states that the machines will be made inoperative during school lunch if necessary

11 HEALTHY HUNGER-FREE KIDS ACT OF 2010 Review of current and new regulations

12 Nutrition Standards Effective for the 2012/13 School Year These are the regulations that we currently follow Fruit & Vegetable: – ¾-1 cup of vegetables plus ½ -1 cup of fruit per day Vegetable requirement: – Dark green, red/orange, beans/legumes, starchy and other Meat/Meat Alternate: K-8 1oz minimum/day, 9-12 2 oz minimum/day Grains: 8 servings per week minimum, K-8 minimum 1 oz/day, 9-12 minimum 2 oz/day Whole Grains: 50% must be whole grain rich Milk: 1 cup of skim milk flavored or unflavored or 1% lowfat milk unflavored Calories – K-5 550-650 – 6-8 600-700 – 9-12 750-850 **STUDENTS MUST TAKE MINIMALLY ½ CUP OF A FRUIT OR VEGETABLE TO BE COUNTED AS A MEAL.

13 Additional Nutrition Standards Effective for the 2014/15 School Year Whole Grains: all grains must be whole grain rich Sodium – K-5 < 1,230 – 6-8 < 1,360 – 9-12 < 1,420

14 Smart Snacks in Schools – New Regulations 2014/15 Applies to ALL food and beverages, sold on campus during the school day and accessible to students – A la carte in the cafeteria – In school stores – Snack bars – Vending Machines – Other venues: fundraising Applies to all grade levels Food and beverages must meet general standards AND specific nutrient standards Nutrition standards are minimum standards – school districts may establish additional standards

15 Smart Snacks in Schools – New Regulations 2014/15 Snack must include 1 out of the 4 following criteria: – First ingredient must be a fruit, a vegetable, a dairy product a protein food OR – The product is: “whole grain rich” OR – A combination food with at least ¼ cup of fruit and/or a vegetable OR – Contain 10% Daily Value of a nutrient of public concern: calcium, potassium, vitamin E, or dietary fiber

16 Smart Snacks in Schools – New Regulations 2014/15 Snacks: – 200 calories of less – 230 mg of sodium or less – Total fat < 35% of calories – Sat Fat <10 % of calories – Trans fat 0 grams – Sugar, than or equal to 35% of weight of product

17 Smart Snacks in Schools – New Regulations 2014/15 Drinks: – Elem - 8 ounces of milk, 100% veg and/or juice, – MS – 12 ounces of milk, 100% veg and/or juice, – HS - 12 ounces of milk, 100% veg and/or juice – There is no limit on the portion size of water HS only: – No more that 20 ounces of calorie free/low calorie, flavored water, with or without carbonation. – Less than 5 calories per 8 fluid oz. or < or equal to 10 calories per 20 fluid oz. – No more than 12 oz. of a beverage with less than 40 calories per 8 fluid oz or less than 60 calories per 12 fluid ounces – Alternative includes beverage 50 calories or less per 8 fluid ounces or 75 calories or less per 12 fluid ounces.

18 Wellness Policy Proposed Regulation *comment period was open until 4/28/14 Public Involvement Content of the Wellness Policy Goals for – Nutrition Promotion – Nutrition Ed. – Physical Activity – School based activities to promote student wellness Annual Progress Report Triennial Assessments Updates to the Wellness Policy Public Updates Monitoring/Oversight

19 Child Nutrition Administrative Review (formerly known as Coordinated Review Effort) School Lunch Guidelines Audit: Formerly every 5 years Last Audit 2010 Findings were positive: record keeping, reimbursement claims, menus planned, mealtime atmosphere Letter from the State Education Department, to Ed Ehmann stating that Smithtown CSD is in compliance with federal and state regulations in May 2010. Healthy Hunger Free Kids Act of 2010 required all school food authorities to be in compliance with the new meal pattern and nutrition standards to receive performance based reimbursement of $.06 per meal beginning October 1, 2012. Letter from the State Education Department to Dr. Annunziato stating that we were approved to receive the performance based $.06 as of October 1. 2012 Healthy Hunger Free Kids Act of 2010 requires audits every three years.

20 District Concerns Going Forward Loss of revenue from drinks and snacks do to new snack guidelines – Vitamin water $89,200 – Canada Pure $48,900 – Snapple $26,500 $164,600 Loss of participation in the reimbursable meal program Finding acceptable snack and drink products to recover lost revenue Options to Consider Consider increasing the lunch price Consider giving 100% of vending commissions to school lunch Consider option of consolidating cafeterias Conduct more fundraisers/increase employee participation Work with vendors to find different options that meet the regulations


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