1. Cost Effective Management Of USDA Foods Presented by: LaNae Potter, SNS Chad Mohr Jessica Gould, RD, SNS

2. Overview Program Cost Overview LaNae Potter, SNS Sr. Program Analyst – USDA Food and Nutrition Service State Agency Program Costs Chad Mohr DHHS Program Coordinator/State of NE Entitlement Utilization Jessica Gould, RD, SNS Director of Nutrition Services/Littleton SD

3. LaNae Potter, SNS Sr. Program Analyst, USDA Program Cost Overview

4. Entitlement Distribution Each State receives entitlement based on lunches served previous year and the per meal rate In November the entitlement is updated using actual lunch counts and carryover of the State’s previous year’s balance States must offer a USDA foods planned assistance level to all Sites/Districts wishing to take part in the USDA Foods program.

5. Entitlement Distribution… States are encourage to order 105% of entitlement early in the SY to account for prices fluctuations and items that may not be purchased. Check with your State for their policies and procedures. Check with your State for their policy and procedure regarding new sites without lunch count histories. Some States may ‘sweeps’ entitlement if not utilized within a certain time frame. Be aware of your district’s planned assistance level and the National Per- meal-rate – monitor your balances frequently at least monthly Do you know the National per meal rate for SY 16?

6. Are you getting the for your with your USDA Foods Entitlement?

7. Maximizing Entitlement Usage Breakfast Lunch Supper Snack Summer Menu Drives USDA Food Purchases

8. Southwest Chicken Rice Bowl Ingredient100 svg100 svg Commercial Price/ingredient USDA Food Value/ + dist costs Rice, brown, dryRice, brown, dry10.6 lbs10.6 lbs$20.35 $9.41 Corn, cannedCorn, canned14.2 lbs14.2 lbs$11.36 $9.53 Tomatoes, canned, dicedTomatoes, canned, diced2 #102 #10$8.60 $7.59 Pinto Beans, cannedPinto Beans, canned2 #102 #10$12.96 $7.45 Mini whole wheat tortillasMini whole wheat tortillas5 lb5 lb$21.60 $6.05 Chicken, Fajita strips,Chicken, Fajita strips,12.5 lbs12.5 lbs$77.75 $24.63 Reduced Fat CheddarReduced Fat Cheddar1.5 lbs1.5 lbs$11.04 $ 5.93$ 5.93 Spicesvarious$2.73 $2.73 Total $166.39 $73.32 Cost per entréeCost per entrée $1.66 $0.73 Maximizing Entitlement Usage

9. Analyze purchasing needs Calculate annual usage Production Records Distributor Velocity/Usage Reports Cost analysis Compare Bid Prices with USDA Food Value Add in (processing), distribution & administrative costs Maximizing Entitlement Usage

10. Helps SFAs determine: Which USDA Foods will be cost effective for their program Calculate their projected usage per item Analysis to reduce number of products Improves Bid Responses Better forecasting numbers when preparing a bid More competitive pricing Benefits of Cost Analysis

11. School District Common Challenges Utilizing all the available options Actively assessing/adjusting USDA Foods requests Committing to process items Districts have not served/tested with their students Sending product to a processor for an item, but not placing that item on the menus Changing the menu in the middle of the year that does not include USDA Foods already ordered Adequately managing, tracking, and/or verifying receipt of further processed items Taking time to evaluate menu and usage needs

12. Storage & Distribution Costs USDA Foods State Distribution and Assessment Fees in SY 13-14 Report Data collected during SY 13-14 Training held by FDD Summarizes some of the characteristics of State distribution and delivery systems Prompted States to re-examine their systems and charges

13. Results Range of Fees Charged to SD to receive USDA Foods Varies Some States charge fees based on region, level of service, type of storage or even dwell time permitted to withdraw USDA Foods. Other States charge one flat fee Many States use administrative funds (SAE funds) to defray the costs charged to schools

15. Questions?