Healthy, Hunger-Free Kids Act of 2010 Public Law 111-296 Presented by Lynn Warner FPP – September 2011 The Act makes many important improvements to the Child Nutrition Programs that serve millions of children across our country each day. -improved access to nutrition assistance through program expansion, outreach, and provisions that make it easier for children to get nutritious meals when they are away from home. - improve the nutrition quality of school meals, as well as the entire nutrition environment in schools. -enhance our understanding of the causes and consequences of hunger and food insecurity -help advance the goal of solving the problem of childhood obesity within a generation, which is at the heart of the First Lady’s Let’s Move! initiative.

Format Brief Overview Additional Reimbursement Meal Price Equity Non Program Revenue Indirect Costs Questions

Brief Overview Passed/Signed December 2010 Implementation Timeline 2011 – 2014 Changes to: NSLP/SBP/ASCP SFSP USDA Foods CACFP WIC SNAP

Brief Overview – Some Specifics Water – Beginning with 2011-2012 school year potable water must be made available for students at lunch. Nutrition program review cycle will increase to every 3 years from current 5. Requires districts to make results of the State Agency review available to the public.

Additional Reimbursement Must comply with new meal pattern. Not finalized until spring 2012 (earliest) State Agency must “certify” compliance Additional 6 Cents per lunch (not breakfast) Effective Date (Later of) October 1, 2012 When final rule is published. Discuss IOM/proposed regs – over 130,000 comments etc. Certification – unknown process at this time. No “two tier” system anticipated.

Equity in School Meal Pricing Section 205 – Equity in School Meal Pricing Intent: To ensure that sufficient funds are provided to the food service account for paid lunches. Eliminate the subsidy currently provided by free/reduced price students.

Equity in School Meal Pricing Effective July 1, 2011 School food authorities compare the weighted average price for paid lunches to the difference between the per meal Federal reimbursement for free and paid lunches For SY 2011-2012, if school food authority’s weighted average price of paid lunches is $2.46 or more, it is in compliance Price Equity Tool: http://www.cde.state.co.us/cdenutritran/nutrimemos.htm

Equity in School Meal Pricing If not in compliance –District Decision Increasing the price charged to children OR Adding non-Federal funds to the food service account Any price increase (SY 2011-2012) may be— Rounded down to the nearest 5 cents Limited to a maximum of 10 cents Prices reported to CDE to USDA to publish SY 2011-2012 – Not in compliance – no action. Need to become aware of the requirement. New guidance to be issued in spring 2012. Increases greater than 10 cents are allowed – what the SFA needs to operate a non-profit food service.

Revenue from Non-Program Food Section 206 - Revenue from Non-program Food. Intent: To ensure that sufficient funds are provided to the food service account for foods sold in schools outside of reimbursable meals.

Non-Program Food A school food authority must ensure that the overall revenue from non-program foods is proportional to the cost of obtaining these foods. If non-program food is purchased with the nonprofit school food service account, all revenue must accrue back to the account. School food authorities should begin reviewing the cost of obtaining any non-program foods sold in relation to the revenue generated.

Non-Program Food Food sold outside of program meals. Purchased with funds from the school food service account. Includes competitive foods as currently provided in regulations. Non-Program Food Tool: http://www.cde.state.co.us/cdenutritran/nutrimemos.htm USDA Definition – non-program food is anything that is not a reimbursable meal.

Non-Program Food Example: Revenue Food Costs Program $950,000 (95%) Should be 95% program / 5% non-program Minimum No USDA guidance on how this calculation should be made – SFA discretion.

Indirect Costs USDA - FNS to issue guidance to SFAs on program rules pertaining to indirect costs, and study the extent of indirect costs paid. Report to Congress on results of the Study by October 1, 2013. Study will assess extent to which indirect costs are charged. The law also provides USDA the authority to issue regulations based on the results of the study.

Indirect Costs Allowable Costs Distorting Items – Exclude Wages, benefits, supplies, procurement costs Distorting Items – Exclude Food Equipment purchases Unallowable costs (bad debts) Any item charged DIRECTLY Follow current guidance – major concern is “double dipping” of expenditures.

Indirect Costs Guidance / Reference OMB A-87 CDE Financial Policies/Procedures

Questions