Paid Lunch Equity and Non- Program Foods Revenue ARTs Conference August 13, 2014 Department of Education Division of Program Support Bureau of Nutrition Programs and Services Kathryn GM Hodges, Program Specialist IV

Guidance Memos supporting Healthy, Hunger-Free Kids Act 2010 June 13, 2011SP Q&As regarding Paid Reimbursable Lunch Revenues (7CFR (e)) and non-reimbursable food sales (7CFR (f)) March 19, 2012SP Instructions for School Year January 2, 2013SP Instructions for School Year clarification February 21, 2013SP Instructions for School Year November 6, 2013SP Instructions for School Year

What do I do? Where do I start?

Each year’s calculation is based on the previous October’s claim figures. You will need: -the number of PAID lunches -the amount charged for PAID lunches

First, pull the October, 2010, and the October, 2013, information and enter it, by school and meal price, on the following, applicable, tabs. Please note, that you’ll always need the October 2010 data. This was the starting point of the PLE regulation.

Be sure to keep track of which meal counts represent which schools. (The form does not allow you to type in the name of the school.)

You’ll need to keep track of the various schools

Carry the $2.08 from the tab over to the Unrounded Requirement Finder tab in the PLE Tool. The system will calculate that the $2.08 weighted average price needed to go up to $2.35 for School Year

SY Non Federal Calculator -This calculates the amount non-federal, per meal, contribution. This is a commitment from the School Board that, rather than raising the price to the student, they will cover it by a transfer from a non-federal funding source. The State Agency would need to see a transparent transfer that equals the number of paid meals sold during the school year times the commitment.

SY Split Calculator -This calculates the per meal increase as well as an increase of non-federal sources. This is a commitment from the School Board that, rather than raising the price to the student for the total amount, they will raise it a bit and cover the balance of the increase by a transfer from a non- federal funding source. The State Agency would need to see a transparent transfer that equals the number of paid meals sold during the school year times the commitment.

Each year’s PLE Tool should be saved for 3+ the current year. Each year, the SAU/District will report to the State Agency: - The price of the most sold meals -The amount of the required increase -The amount of the actual increase

Starting with SY 14-15, the completed PLE tool will be a required attachment to the annual application.

Please note that the use of the PLE Tool is required.

Also, please note, that any required increase MUST be made, either by an increase of the meal price to the student or by a commitment by the School Board to use non-federal dollars to make up the difference.

USDA does not require that a price to a student be increased more than 10 cents in any given year. If a school district does increase more than 10 cents, that is their decision.

Doing Nothing is NOT an option.

Any questions on the PLE?

Now, onto: Non-Program Foods Revenue

What is the point of this? The tool is to help you determine if you are making enough revenue to cover the cost of the items that are being sold outside of a reimbursable meal. Some items to consider are chips and extras, as well as a cheeseburger sold as a la carte, versus a cheeseburger sold as a reimbursable meal.

One Way to Separate Costs: Use Cycle Menus Cost out each meal on the menu Identify the food invoices Multiply the number of meals x the cost to get the Cost of Reimbursable Meals foods Subtract the Cost of Reimbursable Meals foods from the total Food Invoices Result equals the Cost of Non-Program foods

What to look for: Be aware that, if you purchase something for $1.00, you sell it for at least $1.00. Use the Tool to help you price in the future. That $1.00 item would have to be sold for at least $1.60 (Price x 1.57, then rounded) There is no such thing as a “loss leader” in the meals program. Pricing something for less than it costs, just to get the kids in the door, will cause you to be out of compliance.

Any questions on the Non-Program Foods Revenue Tool?

Contact Information If you should have any questions, please contact: Cheri F. White at (603) or Kathryn GM Hodges at (603)