Procurement Review

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Procurement Review Update

• Child Nutrition
• Directors Conference
• August 5, 2009
• Wanda Shockey, MEd, RD, LD
• ADE, Child Nutrition Unit

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State of ArkansasJuly 2007 - June 2008
Breakfast, Lunch and Afterschool Snacks SOURCE
Arkansas Department of Education Child
Nutrition (10/23/2007)
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Federal Reimbursement Rates
4
STATEWIDEAverage Student Payments
This amount set by Congress has not changed
since 1966.This amount set by School District.
5
School District Income from Federal
Reimbursement and Student Payment
Income from paid meals less than income from
free or reduced meals.
6
Regular Program 80 F/R Blended Student Lunch
Revenue

• Average District Lunch Participation
• Per Day 1300 lunches
• 936 Student Free Reimbursement _at_ 2.68
  2,508.48
• 104 Student Reduced Price Payments _at_
  .40 41.60
• 104 Reduced Price Reimbursement _at_ 2.28
  237.12
• 260 Paid Students Payments _at_ 2.00
  520.00
• 260 Paid Student Reimbursement _at_
  .25 65.00
• Per Day Total Student Revenue
  3,372.20
• Blended Revenue per day 2.594 /student meal
  

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Quick Budget Reference

• Budget Expense Projections Based on 2.59
  /Student Meal
• Labor --------------------------------------------
  ------------ 1.02
• Food (Budget Food Cost Per Serving/Meal
  Component)
• Meat/Meat Alternate --- .50 to .65
• Fruit ----------------------- .25 to .35
• Vegetable ---------------- .20 to .25
• Bread/Bread Alternate .15 to .25
• Milk ------------------------ .26 to . 30
• Total Food Cost 1.36 to 1.80
  ------------------1.36 to 1.80
• Other (Equipment, Paper Products, Cleaning
  Supplies, etc) ----------------------- .08
• Projected Cost Per Meal 2.46 to
  2.82
• Non Cash Commodities .195/meal
• Challenge Go to the grocery store and see what
  foods can be purchased
• to prepare and serve a meal for 1.36 to 1.80 to
  meet USDA crediting requirements.

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Regular Program 65 F/R Blended Student Lunch
Revenue

• Average District Lunch Participation
• Per Day 1300 lunches (845 F/R Participation)
• 715 Student Free Reimbursement _at_ 2.68
  1,916.20
• 130 Student Reduced Price Payments _at_
  .40 52.00
• 130 Reduced Price Reimbursement _at_ 2.28
  296.40
• 455 Paid Students Payments _at_ 1.75
  796.25
• 455 Paid Student Reimbursement _at_
  .25 113.75
• Per Day Total Student Revenue
  3,274.60
• Blended Revenue per day
• 2.44 /student meal with Paid Student Price _at_
  1.75 /Lunch
• 2.35 / student meal with Paid Student Price _at_
  1.50 /Lunch

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REVENUE LOSS FROM LOW PRICES For STUDENT PAID
Meals

• Budget Expense Projections Based on Blended
  Revenue of 2.44 /Student Meal
• Labor --------------------------------------------
  ------------ 1.02
• Food (Budget Food Cost Per Serving/Meal
  Component)
• Meat/Meat Alternate --- .50 to .65
• Fruit ----------------------- .25 to .35
• Vegetable ---------------- .20 to .25
• Bread/Bread Alternate .15 to .25
• Milk ------------------------ .26 to . 30
• Total Food Cost 1.36 to 1.80
  ------------------ ----------------------- .08
  
• Projected Cost Per 1.36 to 1.80
• Other (Equipment, Paper Products, Cleaning
  Supplies, etc) Meal 2.46 to 2.82
• Non Cash Commodities .195/meal
• Projected Revenue LOSS
• 2 cents to 38 cents per meal X 1300 meals
  26 to 494 / day
• OR 4,628 to 87,932 dollars per year