School Food Service Budgeting Basics and Direct Certification Reporting Webinar by Rose Wolterbeek and Catrina Peters. Budget webinar covers the financial process for National School Lunch Programs. Direct Certification Reporting covers requirements for SY 2014-2015.

1. Rose Wolterbeek, SNS, MA
Nevada Department of Agriculture
April 1, 2015

3. • Local Sources-Student income
• State Sources-Grant funds
• Federal Sources-NSLP Reimbursement
• Miscellaneous Sources-PTA funds
• Fund Transfers-In-General Fund

4. • Labor-Salary, Extra duty, OT pay
• Employee Benefit Load
• Purchased Foods including USDA
Foods
• Supplies/disposables
• Contracted services: repairs, out
of house contracts

5. • Capital Assets-Equipment
• Travel/professional development
• Miscellaneous
• Indirect Costs-District Overhead
charge

6. • Profit and Loss Statement-P&L
• Statement of Net Position
(Net Assets or Balance Sheet)
• Budget

7. • Revenue by source-Federal, Local
• Expenditures by category
• Net/gain loss for the statement period
• Comparison of current month with
previous month’s information & year-to-
date information

8. • Assets
– Cash balance, receivables due, and value
of inventories
• Liabilities
– Outstanding payables-food/supply
invoices
– Sales tax owed (when appropriate)
• Fund Balance

9. The budget assists in managing the school
nutrition program by:
• forecasting revenue,
• identifying how revenue will be allocated
for expenditures, and
• predicting how much money will be in
the fund balance at year’s end.

10. By converting food sales to meal equivalents,
the school nutrition director
• can determine
– meal cost,
– labor productivity ratios, and
– the average revenue earned per
meal/meal equivalent.

11. 1 lunch = 1 meal equivalent
3 breakfasts = 2 meal equivalents (2/3 = .67)
3 snacks = 1 meal equivalent (1/3 = .33)
1 supper = 1 meal equivalent
Meal Equivalent Conversion
Formulas:

12. Number Meals plus Meal Equivalents
divided by Number of Labor Hours
Example:
338 Meals/Meal Equivalent
24 Paid Labor Hours (daily hours)
= 14.08 or 14 Meals Per Labor Hour
Result: Ratio to compare kitchens/sites

13. How do I compare my operation?
Staffing and meal cost can vary depending on
Type of Meal service provided:
• Elementary vs. Secondary
• Central Kitchen vs. satellite operations
• Single line vs. Multiple lines/food stations
• Geographic location: close distance vs.
large travel within district

14. • Total costs to produce a meal
• Labor, food cost, supply cost, plus other
• Costs to produce a meal compared with
the average revenue generated per meal
• For example, total cost to produce meal
is $3.10, but average reimbursement is
$3.06, loss of .04 per meal for SY: budget
deficit for program

15. • Total net gain/loss to the school
nutrition program expressed in
dollars,
• Percent of gain/loss expressed in
percentage of revenue, and
• Net gain/loss per meal or meal
equivalent.

16. • Prevent waste in excess labor hours and
overproduction of food.
• Reduce customer dissatisfaction because
of inadequate staff and too little food
prepared for the number served.
• Identify number of potential customers
• Set revenue goals

17. • Increase participation & sales, including
early release days and field trips
• Review F/R participation data on claims
• Start a breakfast program (BIC, Grab & Go,
Second Chance and/or Traditional)

18. • Start a catering program (staff in-services)
• Add contracted meals (preschools in area, &
kindergarten classes)
• Look at pricing models & USDA tools
• Evaluate CEP option for your district/schools

19. • Look at food cost: portion control, analyze
per meal cost data, inventory, ordering,
preparing, USDA Food utilization,
extras/condiments, involve all staff with
process
• Look at labor cost: productivity by
site/staffing levels, extra hours, overtime,
non contract days, substitutes

20. • Early Release Days: look at staffing with all
staff, especially substitute labor pool
• Consider Offer versus Serve meal concept:
less food needed for reimbursable meal
• Other areas: look at “Charging Policy”
and/or collection efforts, & staff meals

21. Nevada Department of Agriculture Food & Nutrition
Division
http://nutrition.nv.gov
NFSMI website www.nfsmi.org
“Financial Management: A Course for School Nutrition
Directors 2nd Edition”
Your District’s Business Manager/Finance Officer

23. Direct Certification
Reporting
Catrina Peters MS, RD
School Nutrition Services Manager
Nevada Department of Agriculture
Food and Nutrition Division

24. What Are The Requirements?
Per Federal Regulations
 NDA is required to provide notification on:
 Districts with an Identified Student Percentage (percentage of Direct
Certification matches) of at least 40% and >30% but <40%
 Notification letters have been sent using Verification Summary Data as
a proxy
 School Districts are required to provide notification on:
 School level data must be reported to the State Agency reflecting
April 1st data to determine eligibility and participation in CEP
 NDA is then required to publish a report with the ISP data for each
school

25. How Will This Information Be Used?
Data submitted will be published on our website
Used to determine CEP Eligibility and if elected,
claiming percentages
HUGE national interest and support of expanded
CEP
Hunger advocates
Elected officials
Members of the Public

26. How Do I Fill Out The Spreadsheet?
DATA as of April 1st, 2015

27. When Is It Due?
 Completed spreadsheets must be submitted COB April 10th, 2015
 Send completed spreadsheets to Shawna Sabo (ssabo@agri.nv.gov)
 Will we have to complete this spreadsheet next year?
 Yes, this reporting will be required annually for the foreseeable future
 Deadline to adopt CEP for SY 15/16 was extended to August 31st,
2015
 Memo NSLP 2015-44
 Need a refresher on CEP?
 https://www.youtube.com/watch?v=3SoiWxBmpEU&list=PLGdlCTs4dQT
fYTLj7Vg9VXzDfmqApGipq&index=20

28. Contact Info
 What if I need help?
 Catrina Peters
(cpeters@agri.nv.gov)
775-353-3751
 Rose Wolterbeek
(rwolterbeek@agri.nv.gov)
775-353-3750
 Shawna Sabo—Submit completed spreadsheets to Shawna by April 10th
(ssabo@agri.nv.gov)
775-353-3758