NUTRITION SERVICES FUND

NUTRITION SERVICES FUND

The nutrition services staff is responsible for the operation of the school lunch and breakfast programs, serving nutritious meals to district students and adults. The staff also provides catering for meetings, PTO events and employee functions. They operate the summer feeding program, the after school snack program and offer nutrition education and in-service programs. The staff is responsible for hiring and training all employees.

The staff processes all free and reduced meal applications for the district. They prepare the federal reimbursement claims, operating reports and the annual budget. All bids for food, supplies and equipment are prepared, compiled and awarded by nutrition services. Food commodities are handled and distributed to the breakfast and lunch programs.

The Nutrition Services Fund differs from other budget segments of the school district in that it is an Enterprise Fund. An enterprise is an operation that is run like a private business. Revenues should meet or exceed expenditures.

The following are unique to this fund:

¨ Commodities - Foods which are donated by the United States Department of Agriculture to the School Lunch Program. Quantities of these foods are allocated according to the number of children participating in the lunch program. The food is free, but nutrition services is assessed a handling charge at a set price per case which frequently increases. Nutrition services also incur the cost of warehousing and distribution of these foods by paying the salaries and benefits of warehouse personnel. Nutrition services clerical staff must also do all calculations and paperwork for food distribution.

¨ Inventory - Consists of purchased food, supplies, small equipment, cleaning items and commodities. If vendors agree to deliver to individual schools, the cost is considerably higher. Centralized warehousing is more cost effective and ensures more efficient delivery. Adequate storage space, freezer space, warehouse staff and adequate transport vehicles are necessary to run an effective operation.

¨ Capital Equipment Replacement - Depreciated equipment needs to be replaced and outdated equipment upgraded. Existing equipment must be maintained and repaired.

¨ Salary and Benefits Costs - Comprise approximately 41% of total expenditures. Contract structure, salary increases, and benefit packages are determined by the district independently of nutrition services.

¨ Federal Reimbursement - Monies provided and regulated by the Federal Government according to numbers of children qualifying for paid, reduced price or free meals. This money enables nutrition services to provide nutritious meals at a reasonable price.

Meals must meet regulations of providing at least one-third of a child's daily nutritional requirements in order to be eligible for reimbursement.

2006-07 FTE	2007-08 FTE	POSITION
1.00	1.00	Director
3.00	3.00	Supervisory Staff
3.00	4.50	General Office
1.00	1.00	Buyer
6.00	7.50	Warehouse Workers
31.00	33.00	Cook Managers I
11.00	11.00	Cook Managers II
87.00	102.00	Food Service Assistants
8.00	8.00	Bakery
1.00	1.00	Catering
152.00	172.00	TOTALS

School Lunch Prices

2007-08 School Year

Elementary Student Lunch............................................................. $1.35 (10-day ticket $13.00)

Secondary Student Lunch.............................................................. $1.75 (10-day ticket $17.00)

Adult Lunch...................................................................................... $1.95 (10-day ticket $19.00)

Adult Beverage ……………………..........………………………….. $ .50

Income from Sale of Food
	Paid Lunches	$1,201,592
	Reduced Price Lunches	70,808
	Paid Breakfasts	50,022
	Reduced Price Breakfasts	6,661
	Adult Breakfasts	3,163
	Adult Lunches	85,953
	Ala Carte	748,316
	Catering	40,000
	Summer School	916
	TOTAL:	$2,207,431

Federal Lunch Reimbursement
	Paid	$ 193,888
	Reduced Lunches	242,231
	Free Lunches	4,953,209
	Paid Breakfasts	15,807
	Reduced Price Breakfasts	102
	Free Breakfasts	9,676
	Severe Need - Reduced Breakfasts	44,460
	Severe Need - Free Breakfasts	742,915
	After School Snacks	26,213
	Summer School	90,298
	State Reimbursement	120,000
	TOTAL:	$6,438,799


Rates of reimbursement are $0.23 per plate paid lunches, $2.07 for reduced price lunches, $2.47 for free lunches, $0.24 for paid breakfasts, $1.05 for reduced price breakfasts, $1.35 for free breakfasts, $1.31 for severe need - reduced price breakfasts, $1.61 for severe need - free breakfasts, $0.02 + 60% participation for all lunches and breakfasts, and $0.68 for after school snacks.

2007-08 Nutrition Services
Revenues and Expenses


		2005-06	2006-07	2007-08
		Actuals	Budget	Budget

	Beginning Retained Earnings	3,140,635	3,447,876	3,286,024

	Revenues

	Federal Sources	5,674,040	5,662,993	6,318,799
	State Sources	117,757	100,000	120,000
	Other Local Revenue	2,235,748	2,150,351	2,549,680
	Earnings on Investments	24,617	16,000	18,000

	SUBTOTAL	8,052,162	7,929,344	9,006,479

	Commodities	334,830	446,525	511,372

	Total Revenues	8,386,992	8,375,869	9,517,851

	TOTAL REVENUES, including
	Beginning Retained Earnings	11,527,627	11,823,745	12,803,875


	Expenses

	Salaries	3,333,462	3,433,284	3,912,036
	Benefits	621,591	806,822	825,821
	Purchased Services	317,152	674,498	219,506
	Supplies and Materials	3,130,998	4,147,000	4,993,592
	Equipment (capitalized)	0	234,000	300,000
	Equipment (non-capitalized)	43,208	200,000	287,634
	Other Expenses	31,434	35,000	208,344
	Transfers to Other Funds	0	229,000	200,000

	SUBTOTAL	7,477,845	9,759,604	10,946,933

	Commodities	334,830	446,525	511,372
	Depreciation	242,539	325,000	300,403

	TOTAL EXPENSES	8,055,214	10,531,129	11,758,708


	Reserves

	Appropriated Reserves	0	1,292,616	1,045,167

	TOTAL EXPENSES AND
	APPROPRIATED RESERVES	8,055,214	11,823,745	12,803,875

	Non-Appropriated Reserves	0	0	0

	TOTAL EXPENSES AND RESERVES	8,055,214	11,823,745	12,803,875

	Ending Retained Earnings	3,472,413	0	0