Arkansas Department of Education Reimbursement Rates SY 2017-2018

Memo Information

Memo Number
CNU-18-003
Memo Date
8/2/2017
Memo Type
Regulatory
Section
Child Nutrition
Regulatory Authority
7 C.F.R. 210.4, 210.6, 220.4 and 220.6 Healthy, Hunger- Free Kids Act of 2010 (Pub. L.111-296, HHFKA)
Response Required
YES
Attention
Superintendents; Principals; General Business Manager

Contact Information

Memo Text

ATTENTION:  CO-OP DIRECTORS, CHILD NUTRITION DIRECTORS, BUSINESS OFFICIALS

 

 

Reimbursement rates for the National School Lunch, Breakfast and Afterschool Snacks programs that became effective July 1, 2017, are as follows:

REGULAR REIMBURSEMENT RATES:

 

Regular Lunches

Regular Breakfasts

Afterschool Snacks

Free

$3.23

$1.75

$0.88

Reduced Price

$2.83

$1.45

$0.44

Paid

$0.31

$0.30

$0.08

 

SPECIAL REIMBURSEMENT RATES

SAFETY NET DISTRICTS
School districts that served 60% or more of the total lunches to students eligible for free or reduced price meals in the second preceding school year (2015-2016) are designated “Safety Net” districts and will receive two cents additional reimbursement for each lunch served.  The 2017-2018 Safety Net List is on the forms page of the Child Nutrition Unit website.

SAFETY NET LUNCHES
 

 

Safety Net Lunches

Free

$3.25

Reduced Price

$2.85

Paid

$0.33

 

PERFORMANCE BASED MEAL PATTERN REIMBURSEMENT
The six cents performance based reimbursement (PBR) lunch payment for each district is based on:

·        Meal Pattern Certification Status of District based on Arkansas Department of Education Child Nutrition Unit (ADE/CNU) approval.

·        District’s continued compliance with meal pattern regulations for both lunch and breakfasts.

·        Submission of a correct claim for student lunch reimbursement.

Automatic Six Cent payment per reimbursable lunch is made when total student lunches are entered into the claim payment system.  The six cent payment is now included in the reimbursement rates section of the on-line Claim for Reimbursement form.  When the district receives the six cent payment it will be reported as revenue from federal reimbursement on the claim form.

NON-CERTIFICATION OF DISTRICT MENUS
School districts (including new charter schools) that have not submitted lunch and breakfast menus for certification by ADE/CNU will not receive the performance based reimbursement for reimbursable lunches.  According to United States Department of Agriculture (USDA) regulations and policy memos, these districts MUST still submit menus for certification approval by ADE/CNU.  All non-certified districts must meet the requirements for a reimbursable meal but will not be paid the six cents certification reimbursement.  Please refer to Commissioner’s Memo FIN-13-034 and FIN-13-036 for information regarding certification requirements.

SEVERE NEED BREAKFAST
Severe Need Breakfast rates are approved on a school-by-school basis after application is made by the school district.  Any school in the district that served 40% or more lunches during the 2015-2016 school year as free or reduced price may be eligible to receive an additional $0.34 reimbursement on all free and reduced price breakfasts served during the 2017-2018 school year.

The application process for severe need rates has been completed for the 2017-2018 school year.  Please be sure that the person preparing the claim form for the district is provided the severe need approval letter.

SEVERE NEED BREAKFAST (To claim this special rate by individual school, the district must have ADE/CNU approval letter with list of schools in the district approved for Severe Need reimbursement for the 2017-2018 school year.)

 

 

Severe Need Breakfast

Free

$2.09

Reduced Price

$1.79

Paid

$0.30

 

 

Below is a table containing all of the reimbursement rates for Free, Reduced Price, and Paid lunches, breakfasts, and afterschool snacks.

 

Regular Breakfasts

Severe Need Breakfast

Regular Lunches

Safety Net Lunches

Afterschool Snacks

Free

$1.75

$2.09

$3.23

$3.25

$0.88

Reduced Price

$1.45

$1.79

$2.83

$2.85

$0.44

Paid

$0.30

$0.30

$0.31

$0.33

$0.08

 

MAXIMUM REDUCED PRICE MEAL CHARGES TO STUDENTS

As a reminder the maximum a student may be charged for a reduced price lunch is $0.40, breakfast is $0.30, and afterschool snack is $0.15. The School Food Authorities (SFAs) may charge LESS than the maximum reduced price charge, but may not charge MORE than the maximum reduced price charge.

 

USDA FOOD (COMMODITY) VALUE

The USDA Food value per lunch will be 23.25 cents for the 2017-2018 school year.

ON-LINE CLAIMS PERSONNEL 

SFAs are reminded there must be THREE (3) separate people involved with the Child Nutrition On-line Claim for Reimbursement.  This internal control mechanism is in place to help prevent claims submitted with errors and Legislative Audit findings.

 

The district Child Nutrition Single Sign-On (SSO) account manager can assign privileges for Entry and Submit with District Superintendent approval.  Arkansas Department of Education (ADE) SSO account manager must receive a form signed by Superintendent in order to make changes to the person assigned with Approve privileges. 

 

The SFA personnel responsible for the on-line claim are:

Entry – This is the person that enters all the claim information into the on-line claim system based on source documentation.  This documentation will include (but is not limited to) APSCN financial reports of income and expenses, unpaid bills, income due to program, as well as inventory (purchased and USDA Donated Foods), daily records to support number of reimbursable breakfast, lunch and snack (if applicable) meals served to students, etc.

Submit – This person looks at the claim that was entered by the Entry person, confirms that all information reported on the claim is accurate and backed up with appropriate source documents.

Approve – This person looks at the claim that has already been entered and submitted.  It is necessary for the approval person to confirm that all information submitted on the claim is accurate and supported by appropriate source documents.


ADULT MEAL PRICES
School districts need to adjust adult meal prices charged for participation in the school lunch or breakfast program by the amount of increased free reimbursement received for this year.  This will ensure that adults pay the FULL COST of the student meal as required by
federal guidance.  

 

The formula used for adult LUNCH prices will include:

 

1.     The current year Free Reimbursement rate ($3.23 or $3.25) PLUS

2.     The $0.06 performance based reimbursement PLUS

3.     The federally established Commodity rate for school lunch (23.25 cents) which equals $3.5225 or $3.5425 (may be rounded to $3.55).

The adult meal price for School Breakfast should be at least the amount of the free reimbursement rate for breakfast at the school.  The free reimbursement rate for regular breakfast is $1.75; the free reimbursement rate for severe need schools is $2.09.  It is suggested that adult breakfast meal price be no less than $2.10 per meal.

School districts may charge more than the formula rate for adult meals, but not less than the formula amounts.  If a school district maintains a cost allocation system to determine the separate actual meal costs for school breakfast and lunch, then the actual cost data adjusted for inflation may be used to set Adult Prices.  The school district may opt to pay this difference from local funds however, these funds must be coded as adult payment revenue and not loans to the program.

CURRENT FINANCIAL FORMS
The report forms discussed below are required to meet federal regulations for meal counting and claiming for all REGULAR, PROVISION 2 and CEP programs.  Any additional forms for Provision 2 and CEP Claims for Reimbursement will be sent directly to the districts involved.  The forms are posted in the Reimbursement section of the Forms page of the Child Nutrition Unit (CNU) webpage:  http://www.arkansased.gov/divisions/child-nutrition-unit/forms.

 

AID FOR EFFICIENT ON-LINE CLAIM FOR REIMBURSEMENT PREPARATION
The AID for Efficient On-Line Claim for Reimbursement Preparation has the reimbursement rates for school year 2017-2018.  This form should be printed on legal paper and completed PRIOR to entering the information into the On-Line Claim system.  The AID for Efficient On-Line Claim for Reimbursement Preparation is an attachment to this memo.

INSTRUCTIONS FOR AID FOR EFFICIENT ON-LINE CLAIM FOR REIMBURSEMENT PREPARATION
The Instructions for AID for Efficient On-Line Claim for Reimbursement Preparation includes detailed information as to the information needed to complete the On-Line Claim for Reimbursement.  This instruction form is an attachment to this memo.

DAILY RECORD FORM
(Edit Check 1) – The Daily Record form is to be maintained for each school as listed on CN Program Schedule A of the Agreement.  Participation figures, by school, are required for severe need breakfast reimbursement.  This form may be modified if a local district needs additional information.  This form is on the Forms page of the Child Nutrition website.

CASH MANAGEMENT WORKSHEET
All schools MUST complete the Cash Management Worksheet or a district designed form that contains the information included on this worksheet.  Failure to collect this financial information is an audit exception.  This form is on the Forms page of the Child Nutrition website.

EDIT CHECK 2 WORKSHEET
The Edit Check 2 worksheet is the current form recommended for edit checks REQUIRED BY REGULATION.  It may be modified to meet local needs; however, the comparisons required on this form must be a part of any form used.  This form is on the Forms page of the Child Nutrition website.

ON-SITE REVIEW FORMS
Regulations require that each district conduct on-site reviews of each serving site by February 1 of each year.  The On-Site Review form is posted in the Program Management section of the Forms page of the Child Nutrition webpage and may be modified to meet local needs.

In addition, any schools serving Afterschool Snacks must complete the Afterschool Snack On-Site Review form two times during the school year.  The first snack on-site review must be completed within four weeks of beginning the Afterschool Snack Program.  Any school serving the Seamless Summer Option must complete the On-Site Review form at least one time during Seamless Summer meal service.

ATTACHMENTS:

Instructions for AID for Efficient On-Line Claim Preparation

AID for Efficient On-Line Claim Preparation-Revised