1. FINANCE UPDATE
JUNE 16, 2016
Note: This Dark Blue background color slide treatment is for projection and print for EXTERNAL Audiences. It may also be used for Internal Audiences when projected on screen. (Do not print this cover for internal audience hand-outs.)

2. Why do we report Commodities? How do we report Commodities?
What are Commodities?
Why do we report Commodities?
How do we report Commodities?
Resources for Commodities
Commodity Training - September, 2013

3. WHAT ARE COMMODITIES?
A commodity is a food donation provided by the USDA to the State Departments of Food Distribution, who in turn offer them to eligible Recipient Agencies like school districts.
USDA Commodity Program instituted as a means of subsidy for:
Government Programs: Child Nutrition, WIC, Senior Programs, Prisons, Head Start etc.
Insured that excess products produced by farmers would be used. USDA purchases $1.3B in domestic agriculture annually.
Commodity Training - September, 2013

4. WHAT ARE COMMODITIES?
Quantities of commodity are determined by entitlement which is set by USDA. In the majority of cases, each school district receives a specific dollar amount of commodities based on the average daily participation or number of eligible national school lunch program meals served in the prior year.
Commodity Training - September, 2013

5. WHAT ARE COMMODITIES? WHICH PROGRAMS ARE ELIGIBLE FOR COMMODITIES?
NSLP (National School Lunch Program)
SFSP (Summer Food Service Program)
CACFP (Child and Adult Care Food Program)
Commodity Training - September, 2013

6. WHAT ARE COMMODITIES? Frequently used commodity terms:
Advance Diversion – process normally done in January for next school year to divert raw product to processors
Bonus – commodities not included in entitlement dollars (still included in received and used numbers)
Brown Box – non-processed cases of food, usually canned or frozen fruits & vegetables
DOD (Department of Defense) Produce – fresh fruits and vegetables
Entitlement – dollar amount given to district each year to spend on commodities
Processed – raw product sent to processor and sent back as a finished product (i.e. beef sent to Pierre and sent back as hamburgers)
Commodity Training - September, 2013

7. WHY DO WE REPORT COMMODITIES?
Based on the 2009 USDA ruling we must credit clients based on commodities received
For fixed price contracts, this change impacts the client invoice by crediting the commodities received monthly
For cost of ops and MAC contracts, we show the amount received as a statistic on the client operating statement
Commodity Training - September, 2013

8. HOW DO WE REPORT COMMODITIES?
We use the following statistical account numbers for reporting commodities:
ENT COMMOD RECD
ENT COMMOD USED
ENT-COM REC LESS USE
Commodity Training - September, 2013

9. HOW DO WE REPORT COMMODITIES?
What happens when we report these statistics?
When commodities received is reported, the amount is added to the Key Balance Sheet under PPD CRDT COMMOD RECD and is credited on the client’s invoice. This does not effect SDX Sales or FC.
When commodities used is reported, the amount is subtracted from the Key Balance Sheet under PPD CRDT COMMOD RECD and SDX Sales is reduced. (SDX does not recognize commodities used in food cost on P&L)
The amount on the Key Balance Sheet under PPD CRDT COMMOD RECD should match your ending commodity inventory
Commodity Training - September, 2013

10. Commodity Training - September, 2013

11. Commodity Training - September, 2013

12. Commodity Training - September, 2013

13. Commodity Training - September, 2013

14. HOW DO WE REPORT COMMODITIES?
How do we calculate commodities received?
Calculate the FMV (Fair Market Value) for commodities received in the month for the following items:
Brown Box Commodities
Processed Commodities
DOD Produce
Bonus Commodities
Commodity Training - September, 2013

15. HOW DO WE REPORT COMMODITIES?
How do we calculate commodities received?
Use the method stated in your contract or by your State.
November 15 file from USDA CommodityFiles.htm
FMV on Invoice from State
Report from State Website (CNIPS)
End Product Data Schedule for processed commodities
Commodity Training - September, 2013

16. REPORTING COMMODITIES RECEIVED
Commodity Training - September, 2013

17. REPORTING COMMODITIES RECEIVED
Commodity Training - September, 2013

18. REPORTING COMMODITIES RECEIVED
Commodity Training - September, 2013

19. K12 Report
(Smucker, Jennie-O, JTM, Tyson, Schreiber) Click on Acct Summary. Print this page for your commodity folder.
Commodity Training - September, 2013

20. REPORTING COMMODITIES RECEIVED
Commodity Training - September, 2013

21. Processor Link Report
(Advance Pierre, Sunny Fresh, Chef’s Corner, Schwans) The Processor Link report includes the YTD total on the Home Page after you log in. Print this page for your commodity folder.
Commodity Training - September, 2013

22. REPORTING COMMODITIES RECEIVED
Commodity Training - September, 2013

23. DOD Produce Report
Login on
Click on “Orders and Receipts”
Click on your district
Click on “Display Current Fund Balances”
The total “Spent, Previous Orders” under the County Summary is the amount you should enter on D9
Print report for your commodity folder.
Commodity Training - September, 2013

24. DOD Produce Report
Commodity Training - September, 2013

25. REPORTING COMMODITIES RECEIVED
Commodity Training - September, 2013

26. State Report
Refer to your state specific directions on how to pull this report
Some states will be reported on a monthly basis and some on a YTD basis depending on how your state reports the numbers. You will need to keep a running total YTD for states that report monthly.
Commodity Training - September, 2013

27. REPORTING COMMODITIES RECEIVED
Commodity Training - September, 2013

28. Other Commodity Reports
If your district is using any other processor that isn’t included in Processor Link or K12, you will need to pull these reports as well.
These reports will need to be totaled and enter the YTD amount on the blank lines.
Commodity Training - September, 2013

29. REPORTING COMMODITIES RECEIVED
Commodity Training - September, 2013

30. YTD commodity amounts from Operating Statement
Commodity Training - September, 2013

31. REPORTING COMMODITIES RECEIVED
Commodity Training - September, 2013

32. COMMODITIES RECEIVED REPORT
Commodity Training - September, 2013

33. REPORTING COMMODITIES RECEIVED ON OSI
Commodity Training - September, 2013

34. NEW UFS COMMODITY MODULE
Commodity Training - September, 2013

35. HOW DO WE REPORT COMMODITIES?
How do we value commodities in UFS?
Brown Box/Bonus/DOD Produce
Use account Commodities- Delivery/Admin Charge for any shipping/fees for service charges on invoice (not included in inventory cost)
Code the inventory item to account District Commodities Used.
Purchase Cost is $0 for inventory item
Market Value is the FMV for inventory item
Commodity Training - September, 2013

36. COMMODITY ITEM SETUP
Commodity Training - September, 2013

37. HOW DO WE REPORT COMMODITIES?
How do we value commodities in UFS?
Processed Commodities
Use account Commodities- Delivery/Admin Charge for any shipping/fees for service charges on invoice (not included in inventory cost)
Code the inventory item to account Commodities-Processed.
Purchase Cost is the amount paid on the invoice to the vendor for inventory item
Market Value is the FMV based on the calculation from the End Product Data Schedule for inventory item
Commodity Training - September, 2013

38. Commodity Training - September, 2013

39. HOW DO WE REPORT COMMODITIES?
How do we report commodities in UFS?
Processed Commodities
Example for case of Pierre Hamburger
Price on invoice is $22
Fee for service is $3.00
FMV from End Data Product Schedule is $25
Report the following:
Purchase cost is $22 in inventory
$3.00 to when paying invoice
Market value is $25 in inventory
Actual value of the hamburgers is $47
Commodity Training - September, 2013

40. COMMODITY ITEM SETUP
Commodity Training - September, 2013

41. COMMODITY LOCATION SETUP
Commodity Training - September, 2013

42. COMMODITY LOCATION SETUP
Commodity Training - September, 2013

43. ASSIGN ITEMS TO THE LOCATIONS
Commodity Training - September, 2013

44. REPORTS
Commodity Training - September, 2013

45. ENTER COMMODITY INVENTORY
Commodity Training - September, 2013

46. Follow your State procedure for correctly reporting commodities
RESOURCES
Follow your State procedure for correctly reporting commodities
Utilize your State Commodity Specialist if you have questions AF
Commodity Training - September, 2013

47. RESOURCES – COMMODITY SPECIALISTS
Commodity Training - September, 2013

48. REMINDERS P10 CLOSE AP REGISTERS FAR REPORTS
AMP – FIXED ASSET CONFIRMATION
ACTION PLANS IN E-VISION
BUDGETS DUE JUNE 30
Commodity Training - September, 2013