MEMORANDUM NO. 025-15 CNS
Page1
June1, 2015
June 1, 2015()Action Required
(X)Informational
MEMORANDUM NO. 025-15CHILD NUTRITION SERVICES
TO:Educational Service District Superintendents
School District Superintendents
Assistant Superintendents for Business and/or Business Managers
School Food Service Supervisors
FROM:Randy I. Dorn, State Superintendent of Public Instruction
RE:Report 1800 Series – Analysis of Food Service Operations for FY 2013–14
CONTACT:Jeff Booth, Financial Analyst Supervisor
, (360) 725-6217
Agency TTY: (360) 664-3631
The Office of Superintendent of Public Instruction (OSPI), Child Nutrition Services (CNS), annually compiles data on aspects of food service operations and the accounting of federal funds. The Report 1800 Series is a compilation of reports and statistics for public school districts. These reports are available to assist school districts in evaluating the performance of their food service operations. Districts can use the reports to compare their food service costs to revenues and equivalent meals served. Districts should strive for a breakeven point between total costs and total revenues. The report also showsschool breakfast and lunch meal participation amongst districts.
Districts included in the Report1800 operate under the National School Lunch Program (NSLP) and/or School Breakfast Program (SBP). Food service revenues, expenditures, and student participation data for districts not operating any federally funded food service program or operating only the Special Milk Program are excluded.
FINANCIAL DATA SOURCE
The financial data in the Report 1800Series is derived from each school district’s annual financial report (SPI/F-196) filed with OSPI. For comparison purposes, statewide totals for several of the previous years are included at the end of each report.
Use caution when comparing the financial administrative performance of one district to another. Decisions should not be based solely on information taken from this report but also weighted by other factors such as school board policies, economic status of the students, enrollment, student participation, type of food service, and district operating procedures– all of which may significantly influence financial results.
STATISTICAL SUMMARY
The following table presents a three-year comparison of food service operations for all districts operating federal meal programs based on data in the Report 1800 Series.
Table 1: Year-to-Year Comparisons
Category / School Fiscal Year 2011–12 / School Fiscal Year 2012–13 / School Fiscal Year 2013–14Total Revenues / $360,697,327 / $359,155,886 / $370,862,354
Total Expenditures / $380,753,723 / $386,291,869 / $403,293,962
Net Loss / $20,056,396 / $27,135,983 / $32,431,608
Net Loss as a Percent of Revenue / 5.56% / 7.56% / 8.78%
Food Expenditures as a Percent of Revenue / 42.08% / 42.43% / 43.49%
Labor Expenditures as a Percent of Revenue / 46.35% / 47.14% / 47.09%
Equivalent Lunches / 119,598,963 / 115,126,873 / 115,503,039
Revenue per Equivalent Lunch / $3.02 / $3.12 / $3.21
Average Expenditure per Equivalent Lunch / $3.18 / $3.36 / $3.49
REPORT 1800 SERIES
The attached Report 1800 Series,Analysis of Food Service Operations, includes the following reports:
Report No. / Title1800 A / Revenues and Expenditures (in Whole Dollars)
1800 B / Expenditures as a Percent of Revenue
1800 C / Expenditures as a Percent of Revenue (Ranked)
1800 D / Expenditures and Revenues per Equivalent Lunch
1800 E / Expenditures and Revenues per Equivalent Lunch (Ranked)
1800 F / Percentage of Food and Labor Costs to Total Revenues (Ranked)
1800 G / Breakfast Participation
1800 H / Lunch Participation
1800 I / Percentage of Student Participation in Breakfast and Lunch Programs
1800 J / Percentage of Student Participation in Breakfast Programs (Ranked)
1800 K / Percentage of Student Participation in Lunch Programs (Ranked)
Each reportincludes meal codesto define which child nutrition programs are offered and if the meal services are provided by a food service management company. The codes are as follows:
MealCodesExplanation
BBreakfast program
LLunch program
MMilk program only in at least one school or grade level (e.g., kindergarten)
SSnack program
CFood service program provided by a food service management company
Report 1800 A – Revenues and Expenditures (in Whole Dollars)
The revenue and expenditure data in Report 1800 A was compiled from the FY 2012–13 Report F-196, Program 98 – School Food Services. The report includes the following revenue sources as defined in the Accounting Manual for School Districts and reported in the general fund:
Table 2: Revenue Sources and Account Codes
Revenue Sources / Acct. #Sale of Meals / 2298
OSPI – State Match / 4198
Other State Agencies – State Match / 4398
Federal Reimbursements through OSPI / 6198
Revenue Sources - Continued
Federal Reimbursements Received Directly from Federal Agencies / 6298
Federal Reimbursements from Agencies other than OSPI / 6398
USDA Foods (commodities) / 6998
Other School Districts / 7198
Volunteers, public agencies, political subdivisions, or associations that serve public entities while using school facilities and other local child nutrition programs for school or employee functions / 8198
Report 1800 A includesboth direct and indirect expenditures. Direct expenditures are readily identifiable with specific programs. In the food service expenditure program (Program 98), direct expenditures occur in the following activities:
Table 3: Direct Expenditures and Activity Codes
Direct Expenditures / ActivityPupil Management and Safety / 25
Payments to School Districts / 29
Supervision / 41
Food / 42
Operations / 44
Transfer expenditures for banquets, feeding for the elderly, feeding approved for day care children, and other feeding operations not chargeable to Program 98. / 49
The cost of food and labor charged by contractors providing food management services to certain school districts is recorded in Report 1800 A under the "food" and "labor" categories. The "other" expenditure category includes travel, contractual services, and debit transfers.
Credit transfers were prorated to labor, food, supplies, capital outlay, and other expenditures based on the ratio of each category to the total of all categories for each school district.
For the purposes of the Report 1800 Series, indirect costs areallocated by applying an unrestricted indirect cost rate. The rate for FY 2013–14 was derived from each school district’s FY 2011–12 F-196 Report – Schedule for Determining School District Federal Unrestricted Indirect Cost Rate Including Fixed with Carry-Forward Calculation for FY 2013–14.
In Report 1800A,indirect costs were calculated by dividing selected administrative, service, maintenance, and grounds expenditures in Program 97 – Districtwide Support, by
total general fund direct expenditures less food expenditures. Each school district’s unrestricted indirect cost rate was multiplied by the school district’s food service program direct expenditures less capital outlay and food costs. The result was the indirect costs allocable to the food services program. In FY 2013–14, the sum of the indirect costs allocated to the food services program in all school districts equaled $34,172,489. This amount represents 8.47 percent of the statewide food service expenditures.
Report 1800 B– Expenditures as a Percent of Revenue
Report 1800 C– Expenditures as a Percent of Revenue (Ranked)
Reports 1800 B and C display the percentage of Program 98 food services expenditures to the total food services revenues in each school district.
Each report is organized in county/district order. Report 1800 C was sorted to display those school districts with the largest net loss percentage to ones with the largest net gain percentage.
Report 1800 D– Expenditures and Revenues per Equivalent Lunch
Report 1800 E– Expenditures and Revenues per Equivalent Lunch (Ranked)
Each report displays the expenditures and revenues per equivalent lunch served. Report 1800 D is presented in county/district order. Report 1800 E is sorted by the district with the lowest expenditures per equivalent lunch to the highest.
Equivalent lunches were calculated by combining the following:
1.The number of lunches served.
2.The number of equivalent lunches derived from breakfasts. Breakfasts were converted to equivalent lunches by dividing the number of breakfasts served by 1.50.
- The number of equivalent lunches derived from snacks. Snacks were converted to equivalent lunches by dividing the number of snacks served by three.
- The number of equivalent lunches derived from á la carte revenue. For FY 2013–14,á la carte revenue was converted to equivalent lunches by dividingá la carte revenues by the sum of the following factors:
- The free lunch reimbursement rate of $2.93 (for less than 60 percent eligible) and $2.95 (for 60 percent or more eligible) effectiveJuly 1, 2012 through June 30, 2014.
- The value associated with USDA foods of $0.2325.
The expenditures per equivalent lunch for each school district was calculated by dividing total expenditures by its equivalent lunch count.
Note: The above conversion rates meet the National Food Service Management Institute (NFSMI) requirements.
Report 1800 F– Percentage of Food and Labor Costs to Total Revenues
Report 1800 F displays the percentage of each school district's total food and labor expenditures to its total revenues. The districts aresorted from the lowest percentage to the highest percentage.
Report 1800 G– Breakfast Participation
Report 1800 H– Lunch Participation
Report 1800 Gdisplaysthe number of free, reduced-price, and paid breakfasts served compared to the total studentbreakfast participation during the 2013–14school year.
Report 1800 H displays the number of free, reduced-price, and paid lunches served compared to the total student lunch participation during the 2013–14 school year.
Note: Adult lunches, adult breakfasts, snacks, and á la carte equivalent meals were excluded from the number of meal counts in Reports 1800 G and 1800 H.
Report 1800 I–Percentage of Student Participation in the Breakfast and Lunch Programs
Report 1800 J –Percentage of Student Participation in Breakfast Programs (Ranked)
Report 1800 K – Percentage of Student Participation in Lunch Programs (Ranked)
Report 1800 Idisplays total breakfasts and lunches served in October 2013compared to the number of meals that potentially could have been served if each student ate one meal each day in the month that it was offered. The potential number of students that could have been served was calculated by taking each school offering a school breakfast or lunch program, and multiplying each school’s enrollment by the number of breakfast or lunch service days in October 2013.
The average daily participation (ADP) for October 2013 is also shown. The percentage of students participating in breakfast and/or lunch programs was calculated by dividing the sum of free, reduced-price, and paid student breakfasts/lunches claimed by the potential number of meals possible.
Report 1800 J displays the October 2013 breakfast participation data in Report 1800 I ranked from the school district with the lowest percentage of students participating in breakfast to the highest percentage. The average daily participation at breakfast for October 2013 is also shown.
Report 1800 Kdisplays the October 2013lunch participation data in Report 1800 I ranked from the school district with the lowest percentage of students participating in lunch to the highest percentage. The average daily participation at lunch for October 2012 is also shown.
OVERVIEW OF STUDENT PARTICIPATION AND REVENUE SOURCES
The graphs and charts in Attachment 2 provide an overview of the student participation and revenue sources in school food service programs. Graph1 shows the number of free, reduced-price, and paid breakfasts served from FY 2004–05 through FY 2013–14. Graph2 shows the number of free, reduced-price, and paid lunches served from FY 2004–05 through FY 2013–14. Chart 1 shows the percentage breakdown of FY 2013–14 public schools food services revenue—including food service sales, local, state, and federal sources.
If you have questions or comments concerning this memorandum, you may contact Jeff Booth, Financial Analyst Supervisor, at (360) 725-6217, or via email at .
The agency TTY number is (360) 664-3631. Bulletin attachments are available on the agency website at
EXECUTIVE SERVICES
Ken Kanikeberg
Chief of Staff
FINANCIAL RESOURCES
JoLynn Berge
Chief Financial Officer
CHILD NUTRITION SERVICES
Donna Parsons, MS, RD, SNS
Director, Child Nutrition Services
DP:sh
Attachments:
Attachment 1—Report 1800 Series, Analysis of Food Service Operations
Attachment 2—Overview of Student Participation and Revenue Sources
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 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 complaint 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 .
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.