Arkansas Department of Education Division of Elementary and Secondary Education Reimbursement Rates for Child Nutrition Programs 2018-2019 School Year; Value of USDA Donated Foods; Adult Meal Pricing

Memo Information

Memo Number
CNU-19-006
Memo Date
8/1/2018
Memo Type
Regulatory
Unit
Child Nutrition
Regulatory Authority
7CFR 210.4, 210.6, 220.6 Healthy Hunger-Free Kids Act of 2010 (Pub. L111-296, HHFKA)
Response Required
NO
Attention
Superintendents; Principals; General Business Manager

Primary Contact Information

Secondary Contact/s Information

Memo Reference

No references available.

Memo Text

 

 

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

 

Reimbursement rates for the National School Lunch, Breakfast, and Afterschool Snack programs for the 2018-2019 school year are as follows:

 

 

 

Regular Breakfast

*Severe Need Breakfast

Regular Lunch

*Safety Net Lunch

Afterschool Snacks

Free

$1.79

$2.14

$3.31

$3.33

$.91

Reduced

$1.49

$1.84

2.91

$2.93

$.45

Paid

$0.31

$.31

$.31

$.33

$.08

 

*Special Reimbursement Rates

 

Safety Net Districts

 

School districts that served sixty percent (60%) or more of the total lunches to students eligible for free or reduced price meals in the second preceding school year (2016-2017) are designated as “Safety Net” districts and will receive two cents ($.02) additional reimbursement for each reimbursable lunch served.  The list of Safety Net districts is posted to the forms section of the Arkansas Department of Education, Child Nutrition Unit (ADE, CNU) web page.

 

In addition to the per meal Federal Reimbursement, districts that have met the requirements for Meal Pattern Certification Status will continue to receive an additional six cents ($.06) reimbursement for each reimbursable lunch meal served to students.

 

The requirements for the additional $.06 reimbursement for lunch is based upon:

 

·       Meal Pattern Certification based on ADE, CNU approval

·       District’s continued compliance with meal pattern requirements for breakfast and lunch

·       Submission of a correct claim for student meal reimbursement

 

The $.06 Performance Based Reimbursement (PBR) is an automatic payment for those districts that have completed the meal certification process.  The additional PBR will be included in each monthly claim and is part of the reimbursement rates section.  When districts receive the $.06 payment, it will be reported as revenue from the Federal reimbursement monthly claim.

 

School districts and charter schools (including new charter schools) that have not submitted breakfast and lunch menus for certification by ADE, CNU will not receive the additional PBR for reimbursable lunches served to students.  Districts or Charter Schools that need the required menu certification should contact their assigned Area Specialist for specific requirements for menu certification.  The following United States Department of Agriculture (USDA) link will provide information about the menu certification process: https://www.fns.usda.gov/school-meals/certification-compliance

 

Severe Need Breakfast

 

Severe need breakfast rates are approved on a by school basis.  Districts must apply each year to receive the severe need breakfast rate.  Any school in the district that served forty percent (40%) or more lunches during the 2016-2017 school year (second preceding year) at the free or reduced rate receive an additional  thirty-five cents ($.35)  reimbursement on all free and reduced priced breakfast served during the 2018-2019 school year.

 

The severe need application process is complete for the 2018-2019 year.  Districts that have been approved to receive the extra severe need funding have been provided an approval letter stating that they should claim breakfast meals at the severe need rate.  It is very important that the person who prepares the monthly claim for reimbursement is provided a copy of the severe need approval letter.

 

Afterschool Snack Area Eligible

 

An afterschool care program site is Area Eligible if it is located at a school where at least fifty percent (50%) percent of the enrolled children are eligible for free or reduced price meals.  Area eligible sites will claim all afterschool snacks served at the free rate.

 

The School Food Authority (SFA) personnel responsible for the on-line claim are:

 

Entry:  This person enters all claim information into the on-line claim system based on source documentation which includes (but is not limited to): APSCN financial reports of revenue and expenses, unpaid bills, income to program, inventory (including purchased inventory and USDA Foods (commodities), records to support the number of breakfasts, lunches, and afterschool snacks (if applicable) served to students.

 

Submit:  This person is to check the claim that was entered by the entry person to confirm that information reported on the claim is accurate according to appropriate back-up documentation.

 

Approve:  This person looks at the entered, submitted claim and confirms all information as accurate and supported by appropriate source documents.

 

Aid for Efficient On-Line Claims for Reimbursement Preparation

 

This form should be saved and the current reimbursement rates added in the yellow highlighted sections as appropriate for breakfast, lunch, and afterschool snacks (as applicable).  The form is to be used as a working copy prior to entering the claim into the on-line claim system.  The form may also be printed on legal paper and completed.   The Instructions for Aid for Efficient On-line Claims for Reimbursement Preparation includes detailed information needed to complete the On-Line Claim for Reimbursement.  The forms and the instructions are attached to this memo.

 

Currently Required Financial Forms

 

The forms discussed below are required to meet federal regulations for meal counting and claiming for all regular, Provision 2, and Community Eligibility Provision (CEP) programs.  Any additional forms for Provision 2 and CEP claims for reimbursement will be sent directly to the districts involved.

 

Daily Record Form (Edit Check 1)

The Daily Record Form is to be maintained each month for each school in the district listed on the Schedule A of the 2018-2019 Policy Statement and Agreement.

 

Edit Check 2 Worksheet

The Edit Check 2 worksheet is the current form recommended for edit checks which are required by regulation. The purpose of the form is to allow programs to determine the attendance factor based on Average Daily Members (ADM) and Average Daily Attendance (ADA) The form may be modified to meet local district needs as long as the result is the correct attendance factor. 

 

Cash Management Worksheet

All districts must complete the Cash Management Worksheet or a district designed worksheet that includes the same information.  Failure to complete the Cash Management Worksheet is an audit exception.

 

Program Management Forms

 

On-Site Review Form

Regulations require that each district conduct On-Site Reviews for each serving site no later than February 1 of each school year.  The On-Site Review Form is posted in the Program Management section on the forms page on the Child Nutrition website.  This form may be modified to meet local needs as long as all required information is included in the form.

 

Afterschool Snack On-Site Review Form

Regulations require that the On-Site Review of the Afterschool Snack Program is conducted two (2) times within the school year.  The first review must be conducted within the first four (4) weeks of operating the program.

The forms listed above are posted to the Child Nutrition website in the forms section. http://www.arkansased.gov/divisions/child-nutrition-unit/forms

 

Value of USDA Foods

 

The national average minimum value of donated foods, or cash in lieu thereof, per lunch under the NSLP shall be 23.50 cents for the period July 1, 2018, through June 30, 2019.

 

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 for the 2018-2019 school year.  The intent is to ensure that adults pay the full cost that is equivalent to the free reimbursement and the value of USDA Foods. 

 

The formula used to determine the minimum price of adult LUNCH prices includes:

 

  1.  The current Free Reimbursement Rate ($3.31 or $3.33) PLUS
  2.  The $.06 Performance Based Reimbursement PLUS
  3.  The federally established USDA Foods rate for school lunch (23.50 cents)

 

$3.33 + $.06 + $.2350 = $3.625 rounded up to $3.63 per adult lunch meal

 

The price for an adult breakfast should be at least the amount of the free reimbursement rate for breakfast at the school.  The free reimbursement rate for 2018-2019 is $1.79 and $2.14 if the school is a Severe Need school.  $2.15 is a suggested minimum price for adult breakfasts.

 

The following link will provide USDA guidance for adult meal pricing:

 

http://www.arkansased.gov/public/userfiles/Fiscal_and_Admin_Services/Child_Nutrition/USDA/FNS-782-5_-_Adult_Meal_Pricing.pdf

 

If you have questions, email your Area Specialist or call them at 501-324-9502.

 

 

Attachments:

Instructions for Aid for Efficient On-line Claim Preparation

Aid for Efficient On-line Claim Preparation

Print Memo

Share this memo