Georgia Department of Education. School Nutrition Program

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1 Revenue From Non-Program Food Georgia Department of Education School Nutrition Program Finance & Budget Unit Presented by Edward Dung

2 Authorization Healthy, Hunger Free Kids Act (HHFKA) 2010 Sec CFR (F)

3 Definition For the purposes of this provision a nonprogram food is a food (including beverages) that is sold in a participating school other than a reimbursable meal and is purchased using funds from the school food service account of the school. These include but are not limited to: A la carte items sold in competition with school meals; Adult meals; Items purchased for fund raisers, vending machines, school stores, etc.; and Items purchased for catering and vended meals.

4 Need to know The ratio of revenue from the sale of Non-Program foods MUST be equal to or greater than the ratio of food cost used on Non-Program foods. Cost of Non-Program foods must be reasonably allocated. A surplus (profit) from the sale of Non-Program foods is not an indication that the SFA is in compliance. Only applies if SFA sells Non-Program Foods.

5 Compliance Requirements SFAs are only required to generate sufficient revenue from the sale of Non-Program foods in order to be in compliance. Therefore, SFAs have the discretion to further increase adult meal prices, contracted meal prices and/or a la carte prices in order to comply with the Revenue From Non-Program Foods requirement.

6 Calculations Step 1: Determine the total food cost for the period. Example: FY 2014 Total food cost = $400, Step 2: Determine food cost used in the production of Non- Program foods. If cost data is not available, use a reasonable method to allocate food cost to Non-Program foods. Example: FY 2014 Non-Program food cost = $50,000.00

7 Calculations Step 3: Calculate the ratio (percentage) of Non-Program food cost to total food cost. i.e. Step 2 divided ( ) by Step 1 $50, $ = 12.5% Ratio of non program food = 12.5%

8 Calculations Step 4: Determine SFA total revenues. Example: FY 2014 Total Revenue = $1,000, Step 5: Determine SFA s Non-Program revenues by adding revenues from; Adult Sales = $30, Contracted Sales (if applicable) = $0.00 Non-Reimbursable sales = $80, Total Non-Program revenues = $110,000.00

9 Calculations Step 6: Determine the ratio of revenue and cost of Non-Program foods. i.e. Step 5 divided by Step 4 $110, $1,000, = 11.00% Ratio of non program food = 11.00%

10 Summary Non-Program Food Cost = 12.50% Non-Program Revenues = 11.00% SFA is NOT in compliance with Section 205 of Healthy Hunger Free Kids Act 2010

11 Nonprogram Revenue Calculator Enter the cost for reimbursable meal, cost of nonprogram food and total revenue Cost for Reimbursable Meal Food $ 350,000 Cost of Nonprogram Food $ 50,000 Total Food Costs $ 400,000 Total Nonprogram Food Revenue $ 110,000 Total Revenue $ 1,000,000 Minimum portion of revenue from nonprogram funds 13% Minimum Revenue Required from the Sale of Nonprogram Foods $ 125,000 Additional Revenue Needed to Comply $ 15,000

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