Supt. Sns Financial Powerpoint
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a quick elevator talk to the Supt. of Schools on status of SNS

a quick elevator talk to the Supt. of Schools on status of SNS

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Supt. Sns Financial Powerpoint Presentation Transcript

  • 1. SNS FINANCIAL PERFORMANCE ACTION PLAN 2009-10 Henrico School Nutrition Services August 2009
  • 2. Objective:
    • To define the 2 nd year of a multi-year strategy to return SNS to financial stability (after returning the high schools back to the NSLP) by:
    • reducing operational expenses
    • continue increasing revenue
  • 3. Background Information:
    • HCPS took its high schools off of the NSLP in 1981 due to major budget cuts by the Reagan administration.
    • Henrico’s free/reduced population was less than 20%.
    • HS were previously unprofitable.
    • The HS quickly became very profitable by adding sodas & french fries, ala carte pricing , and dropping vegetables/fruits.
  • 4. Background Information:
    • By 2006-07, the HCPS free/reduced population had grown to 40% due to a worsening economy, major increase of child obesity awareness, & the implementation of a new School Board wellness policy.
    • To better serve needy children, the Superintendent, with input from the Student Congress, recommended to the School Board to return the high schools back to the NSLP in the 2007-08 school year.
  • 5. Background Information:
    • SNS estimated losses of over a million dollars in revenues/expenses as a result of the changeover:
    • a) the elimination of profitable soda sales
    • b) a major reduction in vending sales
    • c) the implementation of new nutrition standards in the wellness policy which are more costly
    • d) additional food costs due to Type A lunch requirements
  • 6. Background Information:
    • The HS point of sale system had to be updated as those registers did not track Type A lunches. ES & MS had 10+ year old computers & software. All cafeterias were then upgraded. The replacement cost was almost $900,000.
    • Other factors such as labor, equipment, etc. did remain constant.
  • 7. FINANCIAL IMPACT ON SNS:
    • REVENUE (in 000s)
    • PRE-NSLP NSLP
    • 04-05 05-06 06-07 07-08 08-09
    • $13,612. $14,220. $14,915. $15,272. $16,937.
    • Going back on the NSLP clearly did not significantly increase SNS revenue when factoring out student population growth & federal reimbursement increases.
  • 8. FINANCIAL IMPACT ON SNS:
    • VENDING
    • PRE-NSLP NSLP
    • 03-04 04-05 05-06 06-07 07-08 08-09
    • $610,496 $359,464 $343,842 $290,418 $144,194 $187,860
    • Note: Just changing vending to all diet sodas in 04-05 resulted in a whopping $251,000 reduction in vending revenue in 8 HS & 174 school days!!!
  • 9. FINANCIAL IMPACT ON SNS:
    • INCREASED FOOD COST
    • PRE-NSLP NSLP
    • 04-05 05-06 06-07 07-08 08-09
    • $5,162,330 $5,189,340 $5,892,896 $7,560,332 $8,123,134
    • EXAMPLE: MILK COSTS
    • PRE-NSLP NSLP
    • 05-06 06-07 07-08 08-09
    • $623,603 $680,159 $946,859 $933,991
    • All Food Costs increased significantly more than revenue in returning the HS back to NSLP.
  • 10. SNS Requirements
    • To continue to provide quality and nutritious foods that kids will actually eat- free or paid!
    • Keep the cost of lunch as low as possible.
    • To provide outstanding customer service for students & school staff.
    • Be 100% self-supporting
    Financial Solvency Quality Nutrition Value Customer Service
  • 11. Balancing All Needs
    • Paid Child : Low meal price, variety of choices, ala carte offerings, & higher USDA nutrition requirements.
    • Free/Reduced Child: Variety, short lines, nutrition, ala carte offerings.
    • SNS: Lower food & labor costs while increasing revenue to offset the HS NSLP implementation and remain self-supportive.
    Free/Reduced Meals Vending Time Constraints Quality Food Nutrition Ed Nutrition Requirements Price of Lunch Variety Ala Carte Labor Food Costs Expenses
  • 12. Cost Analysis
    • Chart shows change in food costs & revenue for 2 years prior & 2 years after the HS implementation.
    • NOTE: 07-08 food cost was also due to hyper-inflation of food, fuel costs and replacement of profitable soda sales w/higher cost beverage offerings.
    • 08-09 (1 st year of plan) revenue increased at a greater rate than food cost.
  • 13. THE NEXT STEP:
    • 2009-10 School Year Action Plan:
    • The following actions will decrease SNS operational costs by over $500,000.
  • 14. THE NEXT STEP:
    • 2009-10 School Year Action Plan:
    • Labor
    • a) Reduce PPT labor hours by 5%.
    • b) Not fill SNS Office positions: Dietitian & Assistant Catering Manager.
    • c) Reduce 5 Manager Trainee Positions.
    • d) Revise Free Lunch Application Process to 3 days.
  • 15. THE NEXT STEP:
    • 2009-10 School Year Action Plan:
    • Food
    • a.) Revamp menus.
    • b.) Increase ala carte prices.
    • c.) Apply stricter management control on inventories/food costs in cafeterias.
    • d.) Re-bid staple food contract to offset last year’s 14.3% price increase.
  • 16. THE NEXT STEP:
    • 2009-10 School Year Action Plan:
    • Administration
    • a.) Suspend the 5 Star Program.
    • b.) Suspend two Employee Incentives:
    • Perfect Attendance & Job Referral.
    • c.) Start monthly P&L financial meetings.
    • d.) Shift USDA food processing
    • payment system.
  • 17. THE NEXT STEP:
    • 2009-10 School Year Action Plan:
    • Operations
    • a.) Reduce SNS travel.
    • b.) Reduce issued uniforms.
    • c.) Suspend equipment replacement.
    • d.) Expand USDA Programs: After School
    • Snacks and Summer Feeding.