1. Alabama Department of Education Summer 2012 1 Certification of Compliance with New Meal Pattern Requirements

2. Agenda 2 Background Certification – School Food Authority (SFA) Responsibilities Certification - State Agency (SA) Responsibilities SY 2012-13 Validation Reviews Administrative Reviews and Ongoing Compliance Reporting Requirements Implementation Funding Questions

3. Acronyms for this presentation 3 US Department of Agriculture= USDA Food and Nutrition Services = USDA FNS School Year = SY

4. Certification of Compliance with New Meal Pattern Requirements 2012 4 Background

5. Background - HHFKA 5 Requires SFAs follow the updated meal patterns (rule published January 26, 2012) Provides performance-based reimbursement for SFAs that demonstrate compliance with updated meal pattern – this includes both lunch ( SY 13) and breakfast (SY14) Additional reimbursement is available October 1, 2012 6 cents reimbursement will be adjusted beginning July 2013

6. Background - Interim Rule 6 The interim rule lays out the requirements and framework for certification for the performance-based reimbursement The certification process works as follows: SFA submits certification documentation to State agency State agency makes a certification determination within 60 days State agencies conduct validation review of at least 25 percent of certified SFAs in SY 2012-13 Ongoing compliance with the meal pattern requirements is monitored during administrative reviews (CRE) State agencies will not be required to conduct administrative reviews (old CRE) in SY 2012-13

7. Background - Interim Rule 7 Some aspects of the meal pattern are phased in over several years SFAs must demonstrate compliance with those requirements in effect at time of certification SFAs must demonstrate compliance with both breakfast and lunch if SFA offers breakfast

8. Certification - Definition 8 Legible paper or electronic documentation submitted to the State agency by the SFA to demonstrate compliance with new meal pattern requirements Documentation must include both breakfast and lunch if SFA offers breakfast Representative of meal service for all schools within the SFA State agency reviews and approves or denies documentation for certification

9. USDA Technical Assistance 9 Q & A’s Prototype contract Tools to support certification have been issued in late May

10. So what is the purpose of this rule? 10 First, the additional 6 cents per lunch provided to certified SFAs is intended to assist SFAs in meeting the new lunch meal pattern and breakfast when applicable. Second, it is expected to encourage SFAs to implement the updated requirements as quickly as possible. Adjust annually with the first adjustment occurring July 2013

11. For Alabama 11 Certification – SFA Responsibilities

12. Question- May a SFA opt out of 6 cent reimbursement? 12 NO

13. How often are you certified? 13 Only one time is required- Exception to the one time certification – if the State Agency is unable to confirm compliance during an on- site validation review. If validation cannot be made, the SFA must reapply for certification. On going certification will be monitored through administrative reviews SFA signature attesting that implementation is occurring

14. What happens if you do not apply? 14 SFA will not be eligible for 6 cents per lunch Must be evaluated early in the review year of the new 3 year administrative review process Non-complaint, with updated meal patterns for breakfast and lunch, will be subject to all standard corrective action, follow- up review and fiscal action

15. Certification Options 15 Option 1: SFA submits one week menus, menu workbook and nutrient analysis Option 2: SFA submits one week menus, menu workbook and simplified nutrient assessment Option 3: State agency on-site review

16. Option 1 16 Door #1

17. Certification – Option 1 17 SFAs must submit: One week of menus for each menu type offered Detailed meal pattern workbook Nutrient analysis of calories and saturated fat for each menu type using FNS nutrient approved software Meal pattern workbook includes food items and quantities used to assess compliance

18. Option 2 18 Door #2

19. Certification – Option 2 19 SFAs must submit: One week of menus for each menu type offered Detailed meal pattern workbook Simplified Nutrient Assessment of calories and saturated fat for each menu type Simplified nutrient assessment will serve as a proxy for a nutrient analysis

20. Option 3 20 Door #3

21. Certification – Option 3 21 State agencies may document SFA compliance during an on-site review. This is the SA discretion to use this option SFA will furnish menus, menu workbooks with food items and quantities, nutrient analyses are required as part of the materials used to demonstrate compliance SA must complete menu workbook for one week of menus and nutrient analysis to determine calories and saturated fat Simplified nutrient analysis may not be used by SA Meal observation is required Must visit one school representing each menu type SA may use Option 3 to certify the SFA even after documents are submitted to the SA ( 60 day completion requirement stands)

22. What do you submit? 22

23. Application Submission 23 Application Form Meal types Menus Workbook Nutritional analysis or simplified nutrient assessment breakfast nutrient analysis is not required for SFA using food based menu planning when making application in SY 13 Attestation document must be signed by the authorized signatory for SFA and will become addendum to application agreement Checklist certifying that all documents furnished Pre K documentation is not required but SFA must attest that the meal pattern is compliant with current CACFP guidance

24. What if you are a new SFA? 24 A new SFA must meet all of the current requirements of the meal patterns that are in effect at the time the SFA enters the program Certification documents are to be submitted for certification approval prior to starting their participation for meal counting and claiming

25. Residential Child Care Institutions(RCCI) 25 Currently there are no exceptions or waivers for RCCIs State Agency staff will be available to provide guidance to help meet the new meal pattern requirements

26. Certification Documentation 26 Menu Type: For each certification option SFAs must submit one week of each menu offered (for both breakfast and lunch) within the SFA, by age grade group Example: If a SFA serves an elementary, middle and high school menu for lunch and one menu for breakfast, the SFA must submit four menus and four meal pattern workbook

27. Nutrient Standard Menus for Breakfast 27 For SFAs seeking certification in SY 13 only. Nutrient standard breakfast menu planning SFAs must submit each distinct breakfast menu along with nutrient analysis of saturated fat and calories After SY13 Nutrient Standard Menu Planning will no longer be allowed by FNS for any meal type. Nutrient Standard Menu Planning for lunch will end as of July 1, 2012.

28. Certification Documentation 28 FNS has provided State agencies and SFAs a prototype meal pattern workbook and simplified nutrient assessment tool FNS will provide guidance and training for these materials

29. Certification Documentation 29 Documentation must reflect current meal service and timeframe: Meals served in the calendar month the certification materials are submitted OR Meals served in the month preceding the calendar month of submission

30. Certification Documentation 30 SFAs may: submit documentation for compliance reflecting planned meal service for October or November 2012 send prior to October 1, 2012 but menus must be planned for October or November, 2012 send certification documents as early as July 1, 2012

31. Certification Documentation 31 Example: If a SFA submits certification documentation in August 2012, the documentation for compliance must reflect meals planned for October or November 2012 for breakfast and lunch if both meal types are served in the SFA.

32. Certification Documentation- Attestation 32 As part of certification, SFAs must attest that: They are in compliance with all current meal pattern requirements- i.e.. Current for SY13 lunch pattern will be required. Breakfast meal pattern will not change until SY14. Early Breakfast Meal Pattern (implementation in SY13) requires state agency approval Documentation is representative of the ongoing meal service within the SFA – ( All schools in the SFA are following the meal pattern workbooks and nutritional analysis submitted) The minimum required food quantities for all meal components are available to students on every serving line

33. Annual Attestation 33 Through SY 2014-15, certified SFAs must also annually attest to compliance of the meal pattern requirements and that compliance will occur as new requirements are phased-in The attestation form must be provided to the state agency as an addendum to the permanent agreement between States and SFA Signed attestation document serves as the SFA’s validation that ALL schools/facilities of the SFA are in compliance with the new meal pattern for all meal types

34. Deadline for documents 34 State Agency cannot create deadlines for certification State Agency staff will work with struggling SFAs to assist with meeting compliance of performance based meal pattern requirements

35. Alabama Department of Education 35 Certification – State Agency Responsibilities

36. 36 Establish process for certification in the State based on interim rule and FNS guidance Train and disseminate information to SFAs Receive, review and approve/deny SFA certification documentation within 60 days of receipt if submitted after October 1, 2012 Disburse 6 cents reimbursement to certified SFA effective on or after October 1, 2012

37. Certification – State Agency Responsibilities 37 State agencies may not approve/deny certification until July 1, 2012 SFAs can start earning 6 cents reimbursement after October 1, 2012

38. Certification – State Agency Responsibilities 38 For applications submitted on or before September 30, 2012, the State agency has 60 days from October 1, 2012 to review certification materials and make a determination

39. Certification – State Agency Responsibilities 39 Example: If a SFA submits certification materials on August 15, 2012 with planned menus for October 1, 2012, the State agency has 60 days from October 1, 2012 to make a certification determination with payment of 6 cents retroactive to October 1, 2012.

40. Certification – State Agency Responsibilities 40 Promptly disburse 6 cents reimbursement to the certified SFA for each lunch served beginning at the start of the month in which the certified menus are served State staff is in the process of working with IS to add 6 cents per lunch to the monthly claim for reimbursement

41. Certification – State Agency Responsibilities 41 Example: If menus for the week of March 15-19, 2013 are certified in May 2013, the State agency must retroactively reimburse the additional 6 cents for all lunches served on or after March 1, 2013

42. For selected SFAs 42 SY 2012-13 Validation Reviews

43. 43 SY 2012-13 Validation Review: Validation reviews are only required in SY 2012-13 Can be conducted when completing an additional administrative review (ARR) for SY 13 An on-site visit conducted by the State agency to affirm that a certified SFA has been and continues to meet the updated meal patterns SA are not required to announce the validation review schedule

44. SY 2012-13 Validation Reviews 44 State agencies must conduct random on-site validation reviews of at least 25 percent of SFAs certified via documentation (Options 1 and 2) 25 percent must include all large SFAs SFAs that receive certification through an onsite review (Option 3) are not required to receive a validation review Review one school representing each type of menu certified Schools are randomly selected by the state agency to visit during the review

45. SY 2012-13 Validation Reviews 45 Draw “sample” during three time periods October – December January – March April – June The total number of validation reviews at the end of SY 2012-13 must be at least 25 percent of certified SFAs in the State Must be completed by June 30, 2013

46. SY 2012-13 Validation Reviews 46 During a validation review, State agencies must: Observe a meal service for each type of menu certified Review the school production records for observed meals Review the documentation submitted for certification

47. SY 2012-13 Validation Reviews 47 All large certified SFAs in State must have a validation review A large SFA (§210.18) includes: All SFAs with 40,000 or more children If there are less than 2 SFAs with 40,000 or more children, the 2 largest SFAs with at least 2,000 children

48. SY 2012-13 Validation Reviews 48 Two types of fiscal action: Fiscal action associated with 6 cents Fiscal action associated with free/reduced/paid reimbursement For validation reviews, just fiscal action associated with 6 cents

49. SY 2012-13 Validation Reviews 49 If the State agency is unable to validate the certification documentation, the State agency must assess: Whether corrective action can occur immediately; and The longevity and severity of the problems These assessments determine whether the SFA can earn the 6 cents in the future and what fiscal action occurs in the current month and prior periods

50. SY 2012-13 Validation Reviews 50 If corrective action does occur immediately 6 cents is not turned off for future months If corrective action does not occur immediately 6 cents must be turned off for future months

51. SY 2012-13 Validation Reviews 51 The longevity and severity of the violation determines fiscal action for the 6 cents States have discretion to determine proper fiscal action

52. SY 2012-13 Validation Reviews 52 What happens if a SFA has 6 cents turned off? SFAs whose 6 cents is turned off for future months as a result of the validation review must re-apply for certification and will be subject to an administrative review early in SY 2013-14 SFA may re-apply for certification at any time after non- compliance is determined

53. HHFKA 2010 53 Administrative Reviews (CRE) and Ongoing Compliance

54. SY 2012-13 Administrative Reviews 54 State agencies will not be required to conduct administrative reviews (CRE) in SY 2012-13 except for: Additional Administrative Reviews – Validation review can be conducted in the same visit Administrative reviews of any “at-risk” SFAs Planned follow up reviews FNS – 640 reporting is required for any administrative reviews conducted in SY 2012-13

55. SY 2013-14 Administrative Review Final Meal Pattern Rule 3 year State agency review cycle Begins School Year 2013-14 (July 1, 2013) Breakfast included in administrative review SMI reviews eliminated and will be combined with administrative review SSO reviews have been added and will review at least one (1) SSO school Modified Performance Standard 2 (CRE) Nutrition Provisions 55

56. SY 2013-14 Administrative Review 56 First year of new 3 year cycle State agency must review any SFA whose review was postponed in SY 2012-13 In addition, State agencies are required to conduct an administrative review early in the review cycle for non- compliant SFAs for 6 cents reimbursement

57. Administrative Review Fiscal Action (6 cents) 57 Ongoing compliance assessed during administrative reviews Any violation of Performance Standard 2 requirements set forth in the new lunch pattern will result in a “turning off” of the 6 cents reimbursement unless immediate corrective action occurs State Agency has the discretion to recover 6 cents depending on non-compliance issue. It may or may not be recovered from the entire school district. Since 6 cents reimbursement is earned for lunches, SFAs cannot lose 6 cents for breakfast violations during an administrative review

58. Administrative Review Fiscal Action (6 cents) 58 If the SFA is able to correct a Performance Standard 2 violation by the end of the week in which the administrative review is conducted, the State agency need not turn off the 6 cents reimbursement For example, if the school is missing a vegetable subgroup during the administrative review and is able to change its food order to include the missing vegetable subgroup during the week of review, then the SFA would not lose the 6 cents reimbursement

59. Administrative Review Fiscal Action 59 As always, State agencies must recover improperly paid funds Includes free/reduced price/paid reimbursement plus 6 cents States have discretion in determining longevity and severity of violations

60. When is 6 cents “turned back on”? 60 To reinstate the 6 cent reimbursement the following must occur: SFA must demonstrate to the state agency’s satisfaction that it has corrected the violation identified during the administrative review If sufficient documentation is provided to the state agency to ensure compliance, an on-site review is not required State Agency has the discretion to complete an on-site review before reinstating the 6 cent reimbursement.

61. Administrative Review Fiscal Action 61 Missing Menu Items/Food Items Milk Type and Vegetable Subgroup Whole Grain Rich, Food Quantities and Dietary Specs Standard Fiscal Action for F/R/P (from updated Meal Pattern rule) Immediate fiscal action required Fiscal action required for unresolved, repeat violations (after technical assistance and corrective action have taken place) State agencies may take fiscal action for unresolved, repeated violations (after technical assistance and corrective action have taken place) New Fiscal Action for 6 cents Standard fiscal action includes 6 cents Standard fiscal action includes 6 cents Standard fiscal action includes 6 cents Absent immediate corrective action, must turn off 6 cents for future months

62. Ongoing Compliance 62 State agencies must provide technical assistance to SFAs who violate the lunch and breakfast requirements after certification 6 cents reimbursement can be “turned back on” when SFA demonstrates they are back into compliance with the lunch requirements An on-site review is not required for the 6 cents to be turned back on

63. Noncompliance 63 It is important to note that when non-compliance with the new meal pattern is found during a SY 2012-13 validation review, the SFA must re-apply for certification When non-compliance is found during an administrative review, the 6 cents reimbursement is turned off but the SFA need not go through the entire certification process again they only must demonstrate when they come back into compliance

64. Ongoing Compliance 64 Persistent or repeated failure to meet standards should be dealt with on a case-by-case basis Could result in withholding of reimbursement until compliance is achieved

65. Appeals 65 SFAs cannot appeal the State agency’s denial of certification SFAs can appeal the State agency turn off of the 6 cents reimbursement

66. to USDA 66 Reporting Requirements

67. Reporting Requirement 67 State agencies must: include meal counts earning 6 cents reimbursement on the FNS-10 include 6 cent reimbursement on FNS-777 quarterly report submit an additional quarterly report detailing the disbursement of 6 cents reimbursement including: Total number of SFAs in the State Names and locations of certified SFAs For each SFA, total number of lunches earning the 6 cents reimbursement for each month

68. Reporting Requirement 68 FNS-10 is currently being updated Prototype reporting template is being created for quarterly report

69. Certification of Compliance with Meal Requirements for the National School Lunch Program under the HHFKA 2010 69 Implementation Funding

70. 70 The HHFKA provides $47 million in each of fiscal years 2012 and 2013 for State agencies to support implementation activities for the new meal pattern These funds may be used for the following activities associated with the implementation of the new meal pattern and the 6 cents reimbursement: Training for SFAs Technical Assistance Certification activities Oversight activities

71. Certification Contractor 71 State agencies may use these funds to procure a contractor to conduct certification activities on behalf of the State agency The contractor could also be used to conduct validation reviews on behalf of the State agency FNS is working to finalize a prototype request for proposal for State agencies to use to procure a contractor to provide certification services

72. Successful Finish 72 Extra Lunch Reimbursement for all schools in your district

73. Certification of Meal Pattern Requirements 73 Question Time