1. Financial Management Part II Staffing Formula and Paid Lunch Equity New Administrator Orientation 2014 Presented by: Stephanie N. Robinson Director, School Support Division

3. Staffing Formula Meals per Labor Hour (MPLH) MPLH is used by food service administrators as a productivity index to monitor the efficiency of their operation and to determine appropriate staffing. – An acceptable industry standard is 14 to 18 meals per labor hour.

4. Calculating MPLH Step 1: Determine the number of meals served daily, or Average Daily Participation (ADP) Step 2: Convert all meals to total meal equivalents Step 3: Calculate total daily paid labor hours – all food service employees, including the manager, kitchen staff and cashier Step 4: Divide the total meal equivalents by the total daily paid labor hours

5. Step 1: Calculating Average Daily Participation (ADP) Average Daily Participation - average number of meals served daily EQUALS (=) Number of Meals Served During a Month DIVIDED BY Number of Operating Days in the Month

6. ADP Example Example: In September, OCN High School served 3000 free student lunches, 2000 reduced price student lunches, 850 paid student lunches, and 200 paid adult lunches during a month. The number of operating days was 20. 6050/20 = 302.5

7. ADP Example cont. Example: The school also served 800 free student breakfasts, 600 reduced student breakfasts, 300 paid student breakfasts, and 150 adult breakfasts during the month. 1850/20 = 92.5 This school had an Average Daily Participation (ADP) of 303 lunches and 92.5 breakfast meals.

8. What is a Meal Equivalent? The unit of measurement used to gauge the effectiveness and efficiency of a school nutrition program. The student reimbursable lunch is the standard unit of measurement most often used. Converting operational data for all food sales to meal equivalents allows the SFSA to evaluate productivity. Step 2: Convert all meals to total meal equivalents

9. Step 2: Meal Equivalents Lunch-all student reimbursable lunches and full-paid adult lunches are counted as one meal equivalent for each lunch served – Lunch ADP x 1 Breakfast-three breakfasts are the equivalent of two lunches – Breakfast ADP x Conversion Factor (2÷3 =.66) After School Snacks- 3 snacks are equal to one meal; there is a 3-to-1 ratio of snacks to lunch – After School Snack ADP ÷ 3

10. Monthly Total for Extra Food Sales Divided by the Number of Operating Days in the Month Divided by the Rate (equals the Free Reimbursement Rate plus the Commodity Rate) – Over 60%, 3.06 +.2475 = 3.31 – Under 60%, 3.04 +.2475 = 3.29 Meal Equivalents cont. Average Daily Extra Food Sales-based on the annual federal reimbursement rate for students eligible for free lunch plus commodity meal rate. RATES

11. Contract Meals (ex. meals provided to local Head Start) - 1-to-1 Ratio – Lunch ADP x 1 – Breakfast ADP x Conversion Factor (2÷3 =.66) Meal Equivalents cont.

12. Step 4: Divide the total meal equivalents by the total daily paid labor hours Final Step

13. EXAMPLE A: OCN High School/ September 2014 OCN High School, School Level Data - 19 Serving Days Eligible Students305 109 Free, 17 Reduced, 179 Paid Student Lunches5099 Student Breakfasts3033 Adult Lunches156 Adult Breakfasts82 After School Snacks586 In-Kind Lunches110 In-Kind Breakfasts94 Extra Food Sales$4,356.25 OCN High School, School Level Data - 19 Serving Days Eligible Students305 109 Free, 17 Reduced, 179 Paid Student Lunches5099 Student Breakfasts3033 Adult Lunches156 Adult Breakfasts82 After School Snacks586 In-Kind Lunches110 In-Kind Breakfasts94 Extra Food Sales$4,356.25

14. Compute Lunch ADP and MEQ 5099 Student Lunches + 156 Adult Lunches = 5255 (Do not include in-kind) 5255÷19 days = 276.58 276.58 x 1 = 276.58 Meal Equivalents

15. Compute Breakfast ADP and MEQ 3033 Student Breakfasts + 82 Adult Breakfasts = 3115 (Do not include in-kind) 3115÷19 days = 163.95 163.95 x.66 = 108.21 Meal Equivalents

16. Compute ADP and MEQ for After School Snacks Snacks were served M, W, and F for a total of 12 days in the month 586 After School Snacks ÷ 19 days = 30.84 30.84 ÷ 3 = 10.28 Meal Equivalents Snacks meals are divided by the number of total serving days for the month, not the number of days snacks were served.

17. Compute Contract Meals 1756 Contract Meals (lunches) were provided to a local HeadStart for the month – 1756/19 = 92.42 x 1 = 92.42 Meal Equivalents

18. Compute Extra Food Sales $4,356.25 ÷ 19 days = $229.28 per day $229.28 ÷ $3.31* =69.27 Meal Equivalent – Over 60%, 3.06 +.2475 = 3.31 *Commodity Meal Rate

19. Total Meal Equivalents EXAMPLE A: OCN High School MEQ Lunch Breakfast After School Snack Contract Meals (Head Start) Extra Food Sales 556.76 276.58 108.21 10.28 92.42 69.27 TOTAL MEQ

20. Compute Labor Hours EXAMPLE A: OCN High School EmployeeClock-InClock-OutLunchTotal Hours Worked Sarah7:002:30.57 Helen7:302:30.56.5 Ellie9:301:30No lunch4 Sonny7:001:00.55.5 Dianne7:002:00.56.5 Barbara (Manager) 6:303:00.58 T O T A L D A I L Y P A I D L A B O R H O U R S = 3 7. 5

21. Meals Per Labor Hour Total Meal Equivalents 556.76 ÷ Total Daily Paid Labor Hours 37.5 = Meals per Labor Hour (MpLH) 14.85

22. Target MpLH To calculate labor required for a target MpLH, divide the total Meal Equivalents by the desired number MpLH. – For 17 MpLH 559.59/17 = 33.92 Labor Hours – Number of hours to be eliminated 37.5 - 33.92 = 3.58 Labor Hours

23. EXAMPLE B: OCN Middle School/ September 2014 OCN High School, School Level Data - 19 Serving Days Eligible Students305 109 Free, 17 Reduced, 179 Paid Student Lunches5099 Student Breakfasts3033 Adult Lunches156 Adult Breakfasts82 After School Snacks586 In-Kind Lunches110 In-Kind Breakfasts94 Extra Food Sales$4,356.25 OCN Elementary School, School Level Data - 19 Serving Days Student Lunches5800 Student Breakfasts1033 Adult Lunches160 Adult Breakfasts75 After School Snacks0 In-Kind Lunches61 In-Kind Breakfasts61 Extra Food Sales Total Daily Paid Labor Hours=25 $1000.25

24. OCN High Participation Breakfast – 3033 meals/19 days = 159.6/305 Students Participation 52.3 % Lunch – 5099 meals/19days = 268.4/305 Students Participation 87.9%

25. Increasing Participation What can YOU do to increase participation? – Grab and Go Breakfast – Breakfast in the Classroom – Customized menus for different age groups – Creative marketing Special events National School Lunch National School Breakfast Week (March 3-7, 2014) Find ways to increase adult participation

26. Paid Lunch Equity (PLE) The Healthy, Hunger-Free Kids Act of 2010” requires school food authorities (SFAs) participating in the National School Lunch Program to ensure sufficient funds are provided to the nonprofit school food service account for lunches served to students not eligible for free or reduced price meals.

27. Meeting the Requirement SFAs have two options to meet the PLE requirement: – Either through the prices charged for “paid” lunches – Or, through other non-Federal sources provided to the nonprofit school food service account.

28. Thank you! Stephanie N. Robinson, Director Office of Child Nutrition, School Support Division Mississippi Department of Education snrobinson@mde.k12.ms.us (601) 576-4955 (phone) (601) 354-7595 (fax)