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Healthy, Hunger-Free Kids Act of 2010

Healthy, Hunger-Free Kids Act of 2010. Public Law 111-296 Presented by Lynn Warner FPP – September 2011. Format. Brief Overview Additional Reimbursement Meal Price Equity Non Program Revenue Indirect Costs Questions. Brief Overview. Passed/Signed December 2010 Implementation Timeline

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Healthy, Hunger-Free Kids Act of 2010

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  1. Healthy, Hunger-Free Kids Act of 2010 Public Law 111-296 Presented by Lynn Warner FPP – September 2011

  2. Format Brief Overview Additional Reimbursement Meal Price Equity Non Program Revenue Indirect Costs Questions

  3. Brief Overview • Passed/Signed December 2010 • Implementation Timeline • 2011 – 2014 • Changes to: • NSLP/SBP/ASCP • SFSP • USDA Foods • CACFP • WIC • SNAP

  4. Water – Beginning with 2011-2012 school year potable water must be made available for students at lunch. Nutrition program review cycle will increase to every 3 years from current 5. Requires districts to make results of the State Agency review available to the public. Brief Overview – Some Specifics

  5. Must comply with new meal pattern. Not finalized until spring 2012 (earliest) State Agency must “certify” compliance Additional 6 Cents per lunch (not breakfast) Effective Date (Later of) October 1, 2012 When final rule is published. Additional Reimbursement

  6. Equity in School Meal Pricing • Section 205 – Equity in School Meal Pricing • Intent: To ensure that sufficient funds are provided to the food service account for paid lunches. Eliminate the subsidy currently provided by free/reduced price students.

  7. Equity in School Meal Pricing • Effective July 1, 2011 • School food authorities compare the weighted average price for paid lunches to the difference between the per meal Federal reimbursement for free and paid lunches • For SY 2011-2012, if school food authority’s weighted average price of paid lunches is $2.46 or more, it is in compliance • Price Equity Tool: • http://www.cde.state.co.us/cdenutritran/nutrimemos.htm

  8. Equity in School Meal Pricing • If not in compliance –District Decision • Increasing the price charged to children OR • Adding non-Federal funds to the food service account • Any price increase (SY 2011-2012) may be— • Rounded down to the nearest 5 cents • Limited to a maximum of 10 cents • Prices reported to CDE to USDA to publish

  9. Revenue from Non-Program Food • Section 206 - Revenue from Non-program Food. • Intent: To ensure that sufficient funds are provided to the food service account for foods sold in schools outside of reimbursable meals.

  10. Non-Program Food • A school food authority must ensure that the overall revenue from non-program foods is proportional to the cost of obtaining these foods. • If non-program food is purchased with the nonprofit school food service account, all revenue must accrue back to the account. • School food authorities should begin reviewing the cost of obtaining any non-program foods sold in relation to the revenue generated.

  11. Non-Program Food • Food sold outside of program meals. • Purchased with funds from the school food service account. • Includes competitive foods as currently provided in regulations. • Non-Program Food Tool: • http://www.cde.state.co.us/cdenutritran/nutrimemos.htm

  12. Non-Program Food • Example: • Revenue • Program $950,000 (95%) • Non Program $ 50,000 (5%) • Food Costs • Should be 95% program / 5% non-program • Minimum

  13. Indirect Costs • USDA - FNS to issue guidance to SFAs on program rules pertaining to indirect costs, and study the extent of indirect costs paid. • Report to Congress on results of the Study by October 1, 2013. • Study will assess extent to which indirect costs are charged. • The law also provides USDA the authority to issue regulations based on the results of the study.

  14. Indirect Costs • Allowable Costs • Wages, benefits, supplies, procurement costs • Distorting Items – Exclude • Food • Equipment purchases • Unallowable costs (bad debts) • Any item charged DIRECTLY

  15. Indirect Costs • Guidance / Reference • OMB A-87 • CDE Financial Policies/Procedures

  16. Questions

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