School Nutrition Association ANC Tuesday, June 30, :15 pm

Transcription

1 School Nutrition Association ANC Tuesday, June 30, :15 pm

2 Federal Regulations 7 CFR (a): Requested & distributed can be consumed without waste (f) and (n) Lowest cost-efficient level, BUT No more than 6 month supply based on average monthly usage Higher levels require written justification

3 Federal Regulations SDA Performance Standards a)program Mgmt & Evaluation

4 Federal Regulations SDA Performance Standards a) Program Mgmt & Evaluation b)information Dissemination 1) Current regulations 2) Commodity specifications & fact sheets 3) Results of test evaluations & surveys 4) Recipes 5) Written procedures for ordering

5 Federal Regulations SDA Performance Standards a) Program Mgmt & Evaluation b) Information Dissemination c)fiscal Responsibility

6 Federal Regulations SDA Performance Standards a) Program Mgmt & Evaluation b) Information Dissemination c) Fiscal Responsibility d)ordering & Allocation

7 Federal Regulations SDA Performance Standards d)ordering & Allocation 1) Commodity acceptability information 2) Commodity availability 3) Assistance levels 4) Ordering and allocating based on participation data 5) Quantity requested at time specified 6) Refuse deliveries 7) Change orders 8) Ordering options & commodity values

8 Federal Regulations SDA Performance Standards a) Program Mgmt & Evaluation b) Information Dissemination c) Fiscal Responsibility d) Ordering & Allocation e)warehousing & Distribution 1) Permit direct shipments 2) Delivery needs 3) Equitable & reliable distribution schedules 4) At least monthly

9 Federal Regulations SDA Performance Standards a) Program Mgmt & Evaluation b) Information Dissemination c) Fiscal Responsibility d) Ordering & Allocation e) Warehousing & Distribution f) Disposition of Damage or Out-of-Condition

10 Federal Regulations SDA Performance Standards a) Program Mgmt & Evaluation b) Information Dissemination c) Fiscal Responsibility d) Ordering & Allocation e) Warehousing & Distribution f) Disposition of Damage or Out-of-Condition g)processing

11 Federal Regulations (n) Inventory Control Under no circumstances should diversions be in excess of: 1. Anticipated usage 2. Processor s ability to accept & store No further distribution shall be made to processors with excess inventory No further distribution to processors reporting no sales activity during the year

12 Federal Regulations (s) Processing Activity Guidance States shall develop & provide a manual or procedural material for policy and procedure on: 1. Contract approval 2. Monitoring & Review 3. Recordkeeping & Reporting 4. Inventory Controls 5. Refund Applications

13 Inventory Controls State monitors processor inventory Processors should only be drawing down what they can prove was produced & delivered Draw down timing depends on VPT

14 Negative Inventory Should be avoided Processor stop selling at discounted $ Processors own risk, no guarantee of replacement Processors not required to front load Often due to food order delays Can offset negative inventory upon receipt of donated food

15 Excess Inventory Common Causes Carryover inventory Deliveries late in the school year States failing to monitor flow Schools diverting commodity to a processor then failing to use inventory Schools failing to apply for rebates in a timely manner or not at all

16 Excess Inventory State Options 1. Give processor written permission to maintain excess inventory 2. Transfer to another school 3. Transfer to another processor 4. Transfer to State that can use inventory 5. Rare instances: processor can buy down excess inventory

17 Excess Inventory State Options 1. Give processor written permission to maintain excess inventory o Processor must provide justification

18 Excess Inventory State Options 1. Give processor written permission to maintain excess inventory 2. Re-allocate to another school o Temporary or permanent o o School may lose entitlement (PAL) State NOT required to replace pounds

19 Excess Inventory State Options 1. Give processor written permission to maintain excess inventory 2. Re-allocate to another school 3. Transfer to another processor o Paper transfer o Physical inventory transfer

20 Excess Inventory State Options 1. Give processor written permission to maintain excess inventory 2. Re-allocate to another school 3. Transfer to another processor 4. Transfer to State that can use inventory o o State can request entitlement credit Give entitlement away

21 Excess Inventory State Options 1. Give processor written permission to maintain excess inventory 2. Re-allocate to another school 3. Transfer to another processor 4. Transfer to State that can use inventory 5. Rare instances: processor can buy down excess inventory o Cash-out small quantities o Contract termination

22 Processor Inventory Guidance Monitor & communicate RA inventory level on a regular basis to ensure utilization Identify RAs with little or no usage early year Communicate RA usage to State Move pounds to RAs who need more State re-allocation account Reduce or eliminate future diversions Communicate continuing problems to FNS

23 State Inventory Guidance Review, update, and enforce your inventory policy & procedures Monitor as an aggregate Encourage RAs to use in year diverted Work with processor to reduce balances of RAs not using inventory Review historical usage rates Eliminate or push back diversions

24 School Inventory Guidance Know your State inventory policy & procedures Develop a strategy Menu driven demand for commodity Track processors and balances Don t t warehouse commodity at processor Use in the year diverted Reach out to State & processor (broker) for assistance

25 Mike Birkmeyer

26 TYPES Non Processed Processed

27 Inventory Management Parameters/Costs Forecast/Order Monitor/Tracking USDA Programs

28 #1 MYTH ABOUT COMMODITY ORDERING

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30 PARAMETERS/COSTS State Methods and Fees Receiving/Storage/Distribution Costs School System Requirements

31 Storage Charges Pickup $1.65 Initial Receiving/Handling Fee $0.76 Charge Each 1 st Of The Month In Storage Delivery $2.35 Initial Receiving/Handling/Delivery Fee $3.33 Storage Charge Each Month

32 Forecast/Order Menu Based Make Good Business Decisions Maximize Commodity Dollars

33 Monitoring/Tracking Customize Tracking System Monthly Inventories Yearly Reconciliations

34 SCENARIO $1.10 Administrative Fee $4.75 Receiving/Handling/Delivery $5.85 Per Case Storage Fee After 1 Month $4.88

35 USDA PROGRAMS Understand USDA Requirements of States Quantity Adjustments Delivery Date Adjustments Buy Or Not To Buy

36 COMMODITY FINANCE Small District $176,096 SY08 Entitlement $9, SY08 Total Fees Paid 6% Entitlement Charge 94% Return On Investment

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38 SCHOOLS Successful Commodity Processing STATE Processors

39 COMMODITY BREAKDOWN How Much of Each Commodity Type Do I Need For One Menu Day Consider All Schools Convert Into Pounds

40 METHODS TO DETERMINE QUANTITY Guess..Estimate Hysterical Historical

41 Forecasting/Ordering Historical Data SEPDS Good Business Decisions

42 Parameters/Costs Research Value Pass Thru Methods Delivery Requirements And Fees Distribution Requirements and Fees Storage

43 Monitoring/Tracking Monthly Basis Year End Reconciliation Verify Proper Commodity Value Know Inventory Balances

44 USDA PROGRAMS Delivery Dates Transfers To Buy Or Not to Buy

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46 USDA Track Sessions Commodity Processing 101 3:30pm State Commodity Distribution Models Thursday, 1:15 pm

47 Contact Us Sherry Thackeray USDA FNS FDD Commodity Processing Mike Birkmeyer Maryland DOE, Food Distribution Section Chief

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