Slide 1

Part 2: Administering

the Summer Food

Service Program –

Program Payments

Oregon Department of Education Summer Food Service Program

Welcome to the Oregon Department of Education Child Nutrition Program’s (ODE CNP) training on Administering the Summer Food Service Program. This training will discuss Program Payments.

Slide 2

• Advances and start-up payments

• Program reimbursement

• Allowable and unallowable program costs

• Management responsibilities

• Non-reimbursable meals

Topics Covered

2

The topics covered in this session are advances and start-up payments; program reimbursement; allowable and unallowable program costs; management responsibilities and non-reimbursable meals. Additionally the methods and procedures for program payments are discussed. Program payments are the reimbursement that sponsors receive based on the number of meals they serve that meet SFSP requirements for reimbursement

Slide 3

• Total program costs

• Operating costs

• Administrative costs

Advance Payments

3

When sponsors apply for the program they have the option to request advance payments. Advance payments may be requested for • (click) their total program costs, • (click) for their operating costs, or • (click) for their administrative costs. Sponsors may not request an advance for operating and administrative costs combined, but must make a request for operating costs and administrative costs separately. Sponsors make advance requests on the Sponsor Information Sheet in CNPweb.

Slide 4

• ODE CNP estimate based on sponsor’s request and available data

• Payments are advances on future reimbursements

• Deducted from future reimbursement payments

• Assist sponsors to maintain positive cash flow

Advance Payments

4

When determining the amount of the advance payment, (click) ODE CNP will make the best possible estimate based on the sponsor’s request and any other available data. (click) These payments are advances on the reimbursement that sponsors will receive for a month of operation and (click) Advances are considered a short term loan and Sponsors receiving an advance must pay the advance back. An advance is paid back through deduction from future reimbursement payments. (click) The advances should help sponsors maintain a positive cash flow because they will have funds available to meet program costs as they arise throughout the month.

Slide 5

• Request 30 days before payment dates (June 1, July 15, August 15)

• Based on reimbursement for same month of previous year

• Certification of staff training before release of additional advances (except school district sponsors)

• Operating at least 10 days for the month of the advance

Advance Payments – Operating Costs

5

(Click) Sponsors must request each advance payment for operating costs from ODE CNP at least 30 days before the payment dates of June 1st, July 15th, and August 15th. (Click) If sponsors participated in the previous year’s program, the advance payments for operating costs are usually based on the reimbursement they earned during the same month of the previous year. ODE CNP may also estimate advance payments as a percentage of anticipated costs. (Click) ODE CNP must receive certification that a sponsor (except for school district sponsors) has held training sessions on program requirements for the site and sponsor personnel before it will release the second month’s operating advance to the sponsor. (Click) A sponsor may not receive an advance for operating costs in any month when it will not be operating for at least 10 days.

Slide 6

• Request 30 days before payment dates (June 1, July 15)

• Advance not available if planning to operate the program less than 10 days

• Amount of advances may be adjusted by ODE CNP based on monitoring or audits

Advance Payments –Administrative Costs

6

(click) Sponsors must request each advance payment for administrative costs from the ODE CNP at least 30 days before the payment dates of June 1st and July 15th. (click) Sponsors planning to operate the program for less than 10 days cannot receive advance payments for administrative costs. (click) ODE CNP may adjust the amount of advances based on monitoring or audits.

Slide 7

• Maximum of 20% of the sponsor’s approved administrative budget

• Deducted from later administrative reimbursements

• Administrative costs for planning a food service

• Administrative costs incurred in establishing effective management procedures

• Not available earlier than two months before food operations begin

Advance Payments – Start-up Payments

7

ODE CNP may, at its discretion, • (click) provide the sponsor with a

limited amount of start-up payments. Start-up payments may be up to a maximum of 20 percent of the sponsor’s approved administrative budget.

• (click) These start-up payments are deducted from later administrative reimbursements and

• (click) are for administrative costs incurred in planning a food service and

• (click) in establishing effective management procedures for that service.

Sponsors may request the start-up payments if they are available, when they apply for the program. (click) If approved, the start-up payments may not be provided any earlier than two months before food operations begin

Slide 8

• Based on number of reimbursable meals multiplied by the sum of administrative and operational rates

• Records to document all costs and meals claimed for reimbursement

• Signed agreement with ODE CNP on file

Program Reimbursement

8

Reimbursements are based on the number of reimbursable meals served multiplied by the sum of administrative and operational rates. Sponsors must maintain complete records to document all costs and meals they claim for reimbursement. Sites must be approved by ODE CNP in CNPweb prior to claiming meals for reimbursement. Sponsors are not eligible for reimbursement unless they have signed an agreement with ODE CNP. The necessary records to maintain are discussed in the ODE CNP training on Recordkeeping.

Slide 9

• Reimbursement for meals served to participants eligible for free or reduced-price meals

• May claim reimbursement

• Three meals or

• Two meals and one snack

• Maintain documentation of free or reduced-price eligibility

• May charge non-eligible participants a separate fee for meals

Camp Reimbursement

9

(click) Camp sponsors can only be

reimbursed for meals served to children

who are eligible for free or reduced

price-meals according to the income

guidelines for the NSLP and SBP.

(click) With ODE CNP approval, camps

may claim reimbursement for serving

up to three meals or two meals and one

snack to eligible children each day.

Therefore, a camp may not claim

reimbursement for snacks on days that

it claims reimbursement for breakfast,

lunch, and supper. Alternately, a camp

may not claim reimbursement for a

third meal on days that it claims a snack

for reimbursement.

(click) Camp reimbursements are based

on the number of children served who

are eligible for free or reduced-priced

meals. Sponsors of camps must

maintain the documentation that

demonstrates the free or reduced price

eligibility of the children they claim

reimbursement for and must make it

available for review by the ODE CNP

reviewer.

(click) Camps may also charge non-

eligible children a separate fee for

meals.

Slide 10 Current Reimbursement Rates

10• http://www.ode.state.or.us/wma/nutrition/cacfp/2014_reimbursement_rates.pdf

The current administrative reimbursement rates are located on the ODE CNP Summer Food Service Program website. ODE CNP posts the reimbursement rates on the ODE CNP website as soon as they are published. The link to the reimbursement rates is located at the bottom of this slide. The SFSP has two different levels of administrative reimbursement rates. (Click) The higher rate is for sponsors that assemble or prepare their own meals and for sponsors of sites located in rural areas. (Click) The lower rate is for all other sponsors (Click) Self-preparation or self-

operating sponsor means a sponsor

which prepares the meals that will be

served at its site(s) and does not

contract with a food service

management company for unitized

meals, with or without milk, or for

management services.

(Click) Vended sponsor means a

sponsor which purchases from a food

service management company the

unitized meals, with or without milk,

which it will serve at its site(s), or a

sponsor which purchases management

services, subject to the limitations set

forth in Sec. 225.15, from a food

service management company.

Additional information of determining

rural designations will be provided in a

later slide.

Slide 11

• Cost of food used

• Nonfood supplies used in the food service

• Space for the food service

Allowable Operating Costs

11

Reimbursements may be used to cover allowable operating costs that include, but are not limited to, the cost of food used, nonfood supplies used in the food service, and space for the food service

Slide 12

• Planning

• Organizing

• Administering

Allowable Administrative Costs

12

Reimbursements may be used to cover allowable administrative costs incurred by your organization for activities related to planning, organizing, and administering the program.

Slide 13

Rural Designation of Sites:

• Two levels of administrative reimbursement rates

• Higher – sites that self-prepare meals and sites located in rural areas

• Lower (or non-rural rate) – all other sponsors

http://www.fns.usda.gov/rural-designation

Allowable Administrative Costs

13

As previously mentioned, (click) The SFSP has two different levels of administrative reimbursement rates. (click) The higher reimbursement rates are for sponsors of sites that prepare or assemble their own meals and for sponsors of sites located in rural areas. (click) The lower rate is for all other sponsors. A rural area is any area that is not part of a Metropolitan Statistical Area as defined by the Office of Management and Budget (OMB). With the approval of ODE CNP, an area may be defined as rural if it is a part of a Metropolitan

Statistical Area (MSA), but is isolated from the urban center. ODE CNP will be able to provide information on whether sites are considered rural for program purposes. According to a study conducted by FNS in 1978, sponsors that prepare their own meals and operate in rural areas may incur higher costs than other sponsors. Therefore additional administrative reimbursement is provided to sponsors who serve meal s at rural sites and for self-prepared meals.

(click) The link at the bottom of this

slide is to access the FNS Rural

Designation Mapper. Using this site

address, sponsors may use the Mapper

to determine if a site may be designated

as rural for purposed of SFSP. See the

ODE CNP memo: Rural Designations

in the Summer Food Service Program

located on the ODE CNP Summer Food

Service Program Memo webpage.

Slide 14

• Cost for excess meals

• Meals not meeting program requirements

• Cost to purchase food used outside of SFSP

• Repayment of over-claims or other Federal debts

• Costs of meals served to adults not in the operation of the food service

• Additional unallowable costs – USDA 2015 Administrative Guidance

Unallowable Costs

14

Unallowable costs are costs for which program funds may not be used. Some examples of unallowable costs are: • Costs for excess meals ordered or prepared but not served to eligible children, for example: meals in excess of legitimate program adult meals and reimbursable meals, unless specifically approved by ODE CNP; • Meals served in violation of program requirements; for example: foods served that do not meet the meal patterns requirements, meals or unapproved components consumed off-site, or second meals served in excess of the 2 percent tolerance;

• The cost to purchase food (including coffee, etc.) for use outside of the SFSP; • Repayment of over-claims and other Federal debts; • The cost of meals served to

administrative adult personnel, or any other adults that are not in the operation of the food service;

• A more detailed list of unallowable costs is located on pages 91-92 of the USDA 2015 Administrative Guidance for Sponsors. This guidance is located on the ODE CNP Summer Food Service Program website.

Slide 15

• Maintain documentation of funds accrued to the program

• Not deducted from a sponsor’s reimbursement

• Sources of program income include

• Cash donations identified specifically for use in the program

• Federal, state or local funds specifically provided to the program

• Income from the price of meals served to non-program adults

Program Income

15

Funds accruing to the program must be

documented, but will not be deducted

from a sponsor’s reimbursement.

Sources of funds that are considered

program income include:

• cash donations specifically identified

for use in the program; and

• any Federal, State or local funds

specifically provided to the program.

• Income from price of meals served to

non-program adults.

Slide 16

• Benefit SFSP services to children or other Child Nutrition Programs

• Start-up funds or improving SFSP services in the following year

• May not be transferred to operations not related to CNP

• Not participating in SFSP the next year?

• Used towards other Child Nutrition Programs operated by the sponsor or

• If no other Child Nutrition Programs are operated by the sponsor, ODE CNP will collect the excess funds

Excess Program Funds

16

Any reimbursements or funds that exceed a sponsor’s expenditures must be (click) used in a way that benefit SFSP services to children or other Child Nutrition Programs operated by the sponsor. (click) Sponsors with funds remaining at the end of the Program year should use them as start-up funds or for improving SFSP services in the following year. (click) Sponsors may not transfer excess funds to operations that are not related to the Child Nutrition Programs or to increase salary or fringe benefit costs when the sole purpose of the increase is to reduce the food service program balance. (click) If the sponsor will not be participating in SFSP the next year, (click) funds may be used towards the sponsor’s provision of other Child Nutrition Programs. (click) If the sponsor does not operate any other Child Nutrition Programs, the State will collect the excess funds.

Slide 17

• Based on number of meals multiplied by administrative and operating rates

• Reflect meals that meet SFSP requirements

• Actually served to eligible children during claiming period

Claims for Reimbursement

17

Sponsors receive their program payments based on the number of meals served multiplied by the appropriate combined administrative and operating rates for reimbursement. Sponsors assume complete responsibility for all of the information they submit on their claims. Claims for reimbursement must reflect only meals that meet SFSP requirements and are actually served to eligible children during the claiming period.

Slide 18

Records

• Number and type of first and second meals served to all children

• Total number of second meals not exceed 2% of number of first meals (see attachment 20)

• Operating and administrative costs

• Program income received

Claims for Reimbursement Cont.

18

Based on records that are regularly submitted by the sites, • sponsors must report the number

and type of first and second meals served to all children; sponsors of camps need to report the meals served to eligible children only.

• The total number of second meals claimed cannot exceed two percent of the number of first meals, for each type of meal served during the claiming period. ODE CNP can provide further guidance on serving second meals and on those situations where second meals will not be reimbursed. A sample Consolidation Form for 1st and 2nd Meals is included as Attachment 20 in the 2015 USDA Administrative Guidance for Sponsors.

• Sponsors must maintain records of all operating and administrative costs, as well as any program income received. These records must be available for review by the ODE CNP.

• After the reimbursement claim form is completed in CNPweb, a sponsor must certify the claim by clicking on the “I Certify” box on the sponsor’s claim and clicking the submit button. Submit the claim for reimbursement to ODE CNP as soon as possible within the month following the month covered by the claim. Claims will not be paid if they are submitted more than 60 days after the last day of the month covered by the claim unless an exception is granted by FNS.

Slide 19

May consolidate claims

• 10 days or less in their initial month of operation combined with the claim for the subsequent month

• If operating less than 10 days in final month, combine final month claim with previous month

Claims for Reimbursement Cont.

19

ODE CNP may allow sponsors to consolidate claims as follows: • 10 days or less in their initial month of operation combined with the claim for the subsequent month; or • If a sponsor operates for less than 10 days in the final month, it may combine the claim for the final month with the claim for the previous month. This combined claim must be submitted to ODE CNP within 60 days of the last day of operation.

Slide 20

May allow the FSMC to conduct same activities for SFSP that are performed for NSLP.

Sponsor must maintain responsibility for:

• submitting claims

• accountable for ensuring all SFSP requirements are met

Food Service Management Companies (FSMC)

20

Sponsors that contract with (Food Service Management Companies) FSMCs for some or all aspects of the management of the food service program may allow the FSMC to conduct the same activities for SFSP that are performed for NSLP. Sponsor must maintain responsibility for submitting claims and remains accountable for ensuring all SFSP requirements are met.

Slide 21

May not claim for reimbursement

• Meals not served as complete unit, except offer versus serve

• Meal patterns or types not approved by ODE CNP

• Meals served at sites not approved by ODE CNP

• Meals consumed off-site, except approved field trips

• More than one meal served to a child at a time

• Second meals in excess of 2% of the number of first meals

Non-Reimbursable Meals

21

Sponsors may claim reimbursement only for those meals that meet SFSP requirements. Reimbursement may not be claimed for: • meals not served as a complete unit (except in “offer versus serve” sites where complete meals must be offered to participants); • meal patterns or types not approved by ODE CNP; • meals served at sites not approved by ODE CNP; • meals consumed off-site , except in the case of approved field trips (this does not include a fruit/vegetable or

grain that ODE CNP and the sponsor may allow to be taken off-site); • more than one meal served to a child at a time; • second meals in excess of 2 percent of the number of first meals served by type during the claiming period;

Slide 22

May not claim for reimbursement

• Meals served outside of approved timeframes or approved dates of operation

• Meals served to ineligible children in camps

• Meals that are spoiled or damaged

• Meals in excess of the site cap

• Meals not served

• Meals served to anyone other than eligible children

Non-Reimbursable Meals Cont.

22

• meals served outside of approved timeframes or approved dates of operation; • meals served to ineligible children in camps (for example those children not meeting the income eligibility guidelines for free or reduced price school meals); • meals that are spoiled or damaged; • meals in excess of the site’s approved level of meal service ( the site cap); • meals that were not served; and • meals served to anyone other than eligible children.

Slide 23

• Advances

• Start-up Payments

• Reimbursement Claims

• Unallowable costs

• Non-reimbursable meals

Summary

23

In this session information on advances, start-up payments, reimbursement claims, unallowable costs and non-reimbursable meals was discussed.

Slide 24 Guidance Materials

24

The following USDA SFSP guidance materials are available to assist sponsors with program implementation.

• Administrative Guidance for Sponsors • Monitor’s Guide

• Site Supervisor’s Guide • Nutrition Guidance for Sponsors

• Food Buying Guide • Food Buying Guide Calculator

The USDA SFSP guidance materials are available on the USDA’s SFSP Resource Web page under “Handbooks” at http://www.fns.usda.gov/sfsp/sfsp-faqs-about-sponsors-0.

The Food Buying Guide is available on USDA’s Web page at http://www.fns.usda.gov/tn/foodbuying-guide-child-nutrition-programs.

The Food Buying Guide Calculator is available on National Food Service Management’s (NFSMI’s) Web page at http://fbg.nfsmi.org/.

An in-depth discussion of program payments is located in Part II – Administering the Program, Chapter 4 in the USDA SFSP 2015 Administrative Guidance for Sponsors. Sponsors are encouraged to review this chapter to learn about SFSP program payments.

Slide 25 Questions?

25

If you have any questions regarding this session please contact your assigned specialist.

Slide 26 USDA Non-Discrimination Statement

26

The U.S. Department of Agriculture prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable political beliefs, marital status, familial or parental status, sexual

orientation, or all or part of an individual’s income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the

Department. (Not all prohibited bases will apply to all programs and/or employment activities.)

If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint form, found online at

http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information

requested in the form. Send your completed complain form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-

9410, by fax (202) 690-7442 or email at program.intake@usda.gov

Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339; or (800) 845-6136 (Spanish). USDA is an equal opportunity

provider and employer.

Thank you for participating in the ODE CNP SFSP training on Program Payments. Oregon Department of Education and USDA are equal opportunity providers and employers. Thank you for all that you do to fuel Oregon’s future.