Collection & Accountability July 2016 USDA is an equal opportunity provider and employer

Learning Objectives Participants should be able to understand: Acronyms for School Nutrition Programs Difference between Pricing and Non-pricing programs Elements of an acceptable collection and accountability system Acceptable methods of collection for income Acceptable methods of accountability for school meals/snacks What method of collection and accountability will work best for each school How to complete an edit check worksheet

School Nutrition Programs Acronyms SNP-School Nutrition Programs SFA-School Food Authority NSLP-National School Lunch Program SBP-School Breakfast Program ASSP-After School Snack Program SMP-Special Milk Program POS-Point of Sale F-Free RP-Reduced Price P-Paid

School Nutrition Programs Acronyms (Cont.) SOP-Standard Operating Procedures FSE- Food Service Employees BID-Benefit Issuance Document MEL-Master Eligibility List CEP-Community Eligibility Program

What is my Job All food service personnel involved in the collection or accountability system need to know: Exactly what their job is Be knowledgeable of the SFA’s policies Be trained in their job functions Be capable of fulfilling their responsibilities

Monitoring The collection and accountability systems must be monitored to ensure that they are working properly according to the SFA’s policies/SOPs Observe that FSE are correctly implementing the systems that have been established. Ensure that: FSE and related staff understand the importance of their position FSE and related staff have the necessary items to do their job Substitutes are trained The system works regardless of who is doing the job

First Things First Pricing or Non Pricing Pricing Determine the price to charge for paid and reduced price meals(breakfast, lunch and if applicable after school snack) How to determine: Potential Income Form Public & Charter-Form 173 Non-Public-Form 157 Students will be charged the SFA’s established prices as listed on the Letter to Parent Prices cannot exceed the maximum prices established annually by the state agency. (Form 168)

First Things First… Non-pricing Regardless of a student’s eligibility ( Free, Reduced or Paid) all students are served meals free of charge No income is collected Income from reimbursement and/or a la carte sales and the SFA’s general fund is used to support the SNP

Preventing Overt Identification Eligibility information must never be publicized or used in such a way that student’s categories may be recognized by other students or individuals The same payment options must be available to all students regardless of eligibility If using tickets publicize the availability of tickets for all eligibilities Publicize prepayment of meals Ensure that the medium of exchange is not distinguishable from the paid eligible Ensure that all students have the same option when ordering meals

Collection A system used by SFAs to receive payment from students for meals/snacks served Refers to all steps within a meal count system involved in paying for meals and issuing and collecting the cash, ticket, ID number which eligible students exchange to obtain a meal Must prevent overt identification of students receiving free or reduced price meals/snack

As per the Schedule A –Site details Methods of Collection As per the Schedule A –Site details Cash register Cash Box Computerized System Classroom Envelope Non pricing Post Payment Billing

Methods of Collection… Register/Cash Box or Computer If cash is accepted online/at the point of service, a prepayment or post-payment billing system should also be in place to prevent overt identification 1-Cash Register Money is accepted from the student either on the serving line/at the cash register or in advance Programmed with specific cash register keys for income: RP, RP prepaid, RP charge, RP charge repaid, Paid, Paid prepaid, Paid charge, Paid charge repaid. Post sign indicating students can prepay for meals in advance

Methods of Collection … 2-Cash Box Money is accepted from the student in advance or on the serving line using a cash box A system must be developed to keep track of the eligibility of the student receiving the meal AND the type of payment: Cash Prepayment Charge Charge repayment

Methods of Collection… 3-Computerized System Money can be collected in advance with a prepayment system set up by the SFA or on the serving line Money is deposited in the student’s account Each time the student purchases a meal the money is deducted from their account balance Meals are recorded by eligibility category Households and students can be reminded when the account is low

Methods of Collection… 4-Classroom Students indicate they are going to “buy a meal” Money is collected daily in the classroom Money is sent to the food service office The name of the student and amount of money is recorded Tickets or medium of exchange indicate the child is “buying a meal” Meal counts still have to be taken at the point of service

Methods of Collection… 5-Envelope Students are provided with preprinted envelopes with the menu or a preprinted menu or the household sends in an envelope with the student’s name. The household indicates the day(s) that meals will be purchased. Tickets or medium of exchange indicate the child is “buying a meal”. Meal counts still have to be taken at the point of service

Methods of Collection… 6-Non Pricing Money is not collected from students. Regardless of a student’s eligibility All children are served meals free of charge 7-Post Payment Billing Money is not collected in advance or on the day the meal is served The number of meals served to students by name and date is maintained Households are billed based on the number of meals served to the student times the selling price

Elements of an Acceptable Counting and Claiming System Eligibility Documentation Collection Procedures Point of Service Meal Counts Reports Claim for Reimbursement Internal Controls An audit trail is created from the application/DC letter to the MEL to the medium of exchange

Accountability-Meal Counting & Claiming Ensuring accurate claims for counting, at the point of service, by category the number of free, reduced and paid meals/snacks. Point of service: That point in the food service operation where a determination can accurately be made that a reimbursable free, reduced price or paid meal has been served. Must prevent overt identification of students receiving free or reduced price meals/snack. Student eligibility recorded and controlled.

Accountability - Meal Counting & Claiming Point of Service: The point in the meal service, after all components are offered, where it can be accurately determined that a reimbursable free, reduced or paid meal has been served. Applies to : All meal service lines Classrooms/locations where meals are served Meals sent on field trips and claimed for reimbursement

Methods of Accountability Examples: Computerized POS Coded ticket Coded roster Tally

Methods of Accountability… 1-Computerized Point of Sale System Information on each student is entered in a data base At a minimum-name, eligibility(F, RP or P) effective date of eligibility or active date and termination date Nice to have-date of birth, school Data base maintains all information for each student. Can be uploaded from the Student Information System. The student information system and the POS system must be compatible. Uploads must occur daily or when a change is made in the eligibility of the student, new students enroll or students transfer POS works best if you have a cafeteria and the kids come through the line. POS works only when good eligibility data has been put in. Must keep updates correct – not one and done.

Methods of Accountability… 1-Computerized Point of Sale continued… Students are assigned a PIN# and/or receive a swipe card or biometric print PIN # is the same the entire time the student is enrolled in the SFA When students receive a meal they enter their PIN # or swipe their card or give their name to the cashier At the end of the meal service a report is generated that identifies how many meals were served by category

Methods of Accountability… Advantages Less labor involved High level of accuracy Good for schools with a high enrollment Meal counts by category are tabulated by the POS May generate the edit check worksheet Various reports can be generate by student-meals served, account balance etc. Historical reports may be maintained Prevents overt identification

Methods of Accountability… Disadvantages Costly School must have the space and power requirements to install and set up Only as good as the information in the POS data base

Methods of Accountability… 2-Coded Tickets Each student is provided with a coded ticket The ticket contains the student’s name and a non- overt eligibility (F, RP or P) code Sample tickets-Form 54 Cashier collects a ticket from the student at the point of service The meal is counted by category and recorded on cash register keys or tickets are counted by category

Methods of Accountability… Coded tickets continued… If the school has a cash register: At the point of service students hand their coded ticket to the cashier Cashier rings into cash register on the appropriate coded key End of meal service “Z out” the cash register Record meal counts by category on a cashier report Transfer categorical counts to the edit check worksheet Maintain cash register tape as a program record

Methods of Accountability… Coded Tickets continued… Cash box or no cash register At the point of service students hand their coded ticket to the cashier Cashier either after the meal service or in between meal periods: Separates the tickets by category Counts the tickets by category-Daily Tally of Tickets or Roster -Form 28 suggested Records meal counts by category on a cashier report Transfers categorical counts to the edit check worksheet

Methods of Accountability… Advantages Can be an efficient and accurate Allows for the prepayment of meals Disadvantages Must be written out by hand or labels generated from the MEL Must be distributed daily Must be updated when a student’s eligibility changes Distributed to the wrong student Students: Lose the ticket Give to a friend

Methods of Accountability… Coded Rosters A weekly or monthly roster is generated with: Names of F, RP and P students purchasing a meal A non-overt code/eligibility of each student Cashier or other individual : Given the coded roster At the point of service checks off the name of the student after receiving a reimbursable meal Daily counts the number of checks by category Daily records the categorical count on the roster Daily enters the meal counts by category on the edit check worksheet

Sample Meal Count Roster-Form 162 CLASS MEAL ROSTER   (1) (2) (3) Month & Year: School: Classroom: (4) (5) (6 & 7) (12) Student Name Code M T W TH F MO. Total TOTAL FREE (8) TOTAL REDUCED PRICE (9) TOTAL PAID (10) TOTAL MEALS (11)

Methods of Accountability… Advantages Suitable for schools with a small enrollment Allows for prepayment May be suitable for classroom serving Disadvantages Very time consuming Often coded incorrectly Often counted by category incorrectly Often staff does not complete daily or correctly Program record-has to be maintained for three years

Methods of Accountability… 4-Tally Method Can only be used when all meals/snacks are claimed at the same eligibility. Ex-All F Cashier or designated person: At the point of service makes a slash tally each time a meal or snack is served Counts the number of slashes Records the total on the edit check worksheet

Methods of Accountability… Advantages Can be used for CEP or ASSP Disadvantages Can only be used when all meals/snacks claimed are the same eligibility

Regardless of the Method of Accountability Develop written procedures for claiming student meals: Counting & claiming backup if computerized POS is down Field trips Second meals Visiting students Charge meals

Charging Policy SFAs are responsible for setting clear policies on collecting payment for school meals. NJ Law effective February 2015: If a student has foodservice debt: SFAs must allow a period of 10 school days for the parent to pay the amount due. If no payment is made by the end of the 10 school days, a second notice must be sent stating that breakfast/lunch will not be served to the student beginning one week from the date of this second notice unless payment is made in full. Students must receive a complete reimbursable meal during the 15 day time period, although an alternate reimbursable meal is allowed. Schools do not have to deny meals–this is a local decision

Decision Time The method of collection and accountability will depend on: The number of meals served Grade levels Cost Staff Location of meal service

Decision Time … System chosen must provide an accurate point of service count: Of reimbursable meals/snacks By category (F, RP, P) Each day Without overtly identifying students’ eligibility categories

All This Work…So Now What ??? Meal counts must be maintained: By SNP-SBP, NSLP, ASSP,SMP Daily by category Daily categorical counts for SBP, NSLP and ASSP must be recorded on an edit check worksheet Count for free and paid milk must be recorded on a milk count worksheet

Reports-Edit Check Worksheet Number of reimbursable meals served daily, by category to eligible students are recorded and reported by FSE to the SFA Ensure that correct counts by category are reported in a way that can easily be consolidated into an accurate claim for reimbursement For each school and meal type categorical counts must be accurate and recorded daily on the edit check worksheet Inaccuracies will result in fiscal action

Edit Check Worksheets… Required for all schools for NSLP, SBP and ASSP Edit checks must be conducted: Daily by Cashier/Manager Monthly by SFA prior to certifying claim Required comparisons must be made Comments indicated, if needed, after comparisons made

Edit Check Worksheets… Select the correct one depending on if meals are prepared on site or received from a commercial vendor or other SFA: SFA preparing meals Form 40 Vended meals from commercial vendor or another SFA Form 37 Sample Edit Check Worksheet-Form 26

Edit Check Worksheet –Form 40

Vended Edit Check Worksheet-Form 37

Sample Edit Check Worksheet-Form 26

Claim for Reimbursement On a monthly basis school by school meal/snack counts submitted to the state agency Source document edit check worksheets Other source documents: Cashier reports Coded rosters POS reports MEL/BID Applications/DC documentation

Claim for Reimbursement… State agency is responsible for paying the claim for reimbursement Reimbursement rates are different for each category Thus, accurate counting, recording and consolidating the number of meals/snacks served by category is essential for the SFA to be paid for meals served

Questions/Resources QUESTIONS: Call (609) 984-0692 FORMS: www.nj.gov/agriculture/applic/forms/#5 or SNEARS/Resources RECORDED WEBINARS SNEARS/Training WEBINAR POWER POINT SNEARS/Resources/Training Presentations

Professional Standards This webinar can count toward 2 hours of professional standards training: Key Area- Administration SFA Learning Topic- Program Management Topic Code - 3260 Administrative Review Department of Agriculture School Nutrition Programs 609.984.0692 www.nj.gov/agriculture USDA is an equal opportunity provider and employer

Available State Agency Forms Sample Edit Check Worksheet-Form 26 Daily tally of Tickets/Rosters-Form 28 Edit Check Worksheet for Vended Sponsors-Form 37 Edit Check Worksheet-Form 40 Sample Tickets-Form 54 Do You Have an Acceptable Counting System at the Point of Service-Form 87 Non-Public-RCCI-Potential Income Chart-Form 157 Class Meal Roster-162 Public and Charter Potential Income Chart-Form 173 Maximum Price Schedule-Form 168 Point of Service Pyramid-Form-250 Posted in SNEARS/Resources or www.nj.gov/agriculture/applic/forms/#5

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