ANNUAL PROGRAM UPDATE

Transcription

1 ANNUAL PROGRAM UPDATE FOR USDA FOODS PARTICIPANT GUIDE Class Purpose The Annual Program Update for USDA Foods will provide National School Lunch Program (NSLP) participants with the latest information regarding USDA Foods. Participants will learn about current information regarding entitlement, USDA Foods orders, policy notices, and program information for school year Texas Department of Agriculture

2 Table of Contents Introduction...3 Module 1: Entitlement...6 Module 2: USDA Foods Orders Module 3: Program Improvements Module 4: Policy Module 5: Miscellaneous Topics Texas Department of Agriculture

3 INTRODUCTION Modules Module 1: Entitlement Module 2: USDA Foods Orders Module 3: Program Improvements Module 4: Policy Module 5: Miscellaneous Topics Class Overview The Annual Program Update for USDA Foods will provide National School Lunch Program (NSLP) participants with the latest information regarding USDA Foods. Participants will learn about current information regarding entitlement, USDA Foods orders, policy notices, and program information for school year Acknowledgment Statement Participant Materials Pencils/Pens Highlighters You understand and acknowledge that the training you are about to take does not cover the entire scope of the program; and that you are responsible for knowing and understanding all handbooks, manuals, alerts, notices and guidance, as well as any other forms of communication that provide further guidance, clarification or instruction on operating the program. Texas Department of Agriculture

4 Icon Icons Resources Discussion Icons will be used throughout the presentation to guide participants through the lesson. All icons will be placed in the left margin. Text scripts associated with each icon will be included to the immediate right of the image. Individual Activity Reminder Tip Texas Department of Agriculture

5 This Page Intentionally Left Blank Texas Department of Agriculture

6 MODULE 1: ENTITLEMENT Welcome to the annual program update for USDA Foods! In today s training you will get the latest information regarding the USDA Foods Program. If you should have any questions not covered in today s training, please write them down and hand them to the ESC staff attending the training. Following this presentation, you will have a one hour question and answer session with a TDA Commodity Operations staff member. We hope you find this information helpful as you manage your USDA Foods accounts. Again, welcome and thank you for attending today s update! - Elizabeth Gonzales, Director of Commodity Operations ACRONYMS Acronym Term Acronym Term CE Contracting Entity NSLP National School Lunch Program DoD Department of Defense RFP Request for Proposal ESC Education Service Center SY School Year FDP Food Distribution Program TLS Total Lunches Served FNS Food and Nutrition Service TDA Texas Department of Agriculture FSMC Food Service Management Company TX-UNPS Texas Unified Nutrition Programs System FTS Farm to School USDA United States Department of Agriculture Texas Department of Agriculture

7 CALCULATING ENTITLEMENT Entitlement is calculated based on total lunches served multiplied by the commodity rate of assistance. The total lunches served is a cumulative total from the NSLP claim for reimbursement the CE submitted to TDA. The current year s entitlement is based off of the previous year s total lunches served. Total Lunches Served X Commodity Rate of Assistance Estimated Entitlement ENTITLEMENT: YEARLY CYCLE A CE s entitlement may change several times throughout the program year. Below are the months in which these changes may occur. January July October November Texas Department of Agriculture

8 SCHOOL YEAR 2015 ENTITLEMENT Below is a recap of changes to the commodity rate of assistance for school year January 2014: Estimated rate of assistance, $0.25. February 2014: Updated rate of assistance, $0.28. July 2014: Published rate of assistance, $ USDA added an additional $ to include the shortfall in USDA purchases for SY WAS YOUR TLS LOWER THAN PROJECTED? When TLS numbers get finalized and updated in TX-UNPS, some CEs end up with a number that is lower than what was projected in January. When this occurs, entitlement balances are usually lower as well. What impact does this have on CEs? SCHOOL YEAR ENTITLEMENT For the current school year, TDA allocated Regular USDA Foods or brown box items at an estimated fixed price that was displayed on the annual survey. However, the USDA makes food purchases at the actual cost and passes this price down to the states. With the rising costs of food, this has depleted state entitlement at a faster rate than at the CE level. Texas Department of Agriculture

9 NEW IN SCHOOL YEAR In an effort to align allocation prices with the USDA purchase prices, TDA will be implementing a weighted average cost for allocation of Regular USDA Foods. What does this mean for CEs? ESTIMATED RATE OF ASSISTANCE TDA opened the new program year on January 9, 2015, with an estimated rate of assistance of $0.28. However, based on information received from the USDA, TDA adjusted the estimated commodity rate of assistance to $0.255 on January 23, Texas Department of Agriculture

10 KNOWLEDGE CHECK In which month does the actual commodity rate of assistance get published by the USDA? A. January B. October C. July D. November When does TDA usually update the TLS from the previous year? A. March B. October C. July D. November Texas Department of Agriculture

11 MODULE 2: USDA FOODS ORDERS FOOD DISTRIBUTION PROGRAM CROSSWORD Across 3. Funds based on Total Lunches Served multiplied by the Commodity Rate of Assistance. 4. Administrator of the Food Distribution Program in Texas. 5. Federal Agency responsible for the Food Distribution Program. Down 1. Software for nutrition program management, utilizing the internet to provide Food Distribution Program users with efficient and immediate access to CE contracts, requests for USDA Foods, entitlement, inventory, and all other FDP functions. 2. The month preparations for a new Food Distribution Program year begins. 6. Agency that has partnered with the USDA to provide fresh fruits and vegetables for NSLP participants. Texas Department of Agriculture

12 USDA Food Trends The charts below show what percentage of entitlement CEs in Texas used towards the four food categories. Entitlement Usage SY Fruit Protein Staple Vegetable Entitlement Usage SY Fruit Protein Staple Vegetables 24% 8% 13% 22% 6% 13% 55% 59% The bar graph on top compares entitlement usage between SY and SY The bar graph on the bottom compares the number of cases purchasesd between the two school years Entitlement Usage 0 Fruit Protein Staple Vegetables SY SY Number of Cases Purchased Fruit Protein Staple Vegetable SY SY Texas Department of Agriculture

13 SCHOOL YEAR 2015 PRODUCT SUPPLY ISSUES: BEEF The USDA released a memo on September 22, 2014, providing information and guidance to state agencies and school food authorities on the current status of the domestic beef market. Wholesale prices for ground beef increased more than 30% since last year. Beef prices have continued to rise and supplies of domestic beef are tight nationwide. The USDA has had difficulty obtaining bulk beef for further processing. Beef products that USDA delivers directly to states, such as USDA fine grind, patties, and cooked meat items have been steadier in supply. SCHOOL YEAR 2015 PRODUCT SUPPLY ISSUES: Poultry The USDA has also experienced challenges in fulfilling orders for some poultry products. Market conditions, increased demand and vendor capacity for these products has limited some, but not all, of the chicken products purchased and delivered in the fall. Additionally, a limited supply of birds has impacted turkey products offered through the USDA Foods program. CANCELLATIONS AND DELAYS The following USDA Foods products that have been delayed or cancelled in SY Canned boned chicken Turkey roasts Oven roasted chicken Sweet Potatoes Frozen potato products Wild blueberries Texas Department of Agriculture

14 FRUIT SHORTAGES Several factors have affected the availability of fruit. Regions where fruit is grown in the US have experienced one of the driest years on record. The drought has had a major impact on crop and livestock production and on consumer food prices. Also, many farmers are noting a significant shortage in farm labor. PROCESSORS EXITING THE PROGRAM Below are the processors that have exited the program in SY Kings Delight Café Favorites Quantum Foods Texas Department of Agriculture

15 MODULE 3: PROGRAM IMPROVEMENTS USDA NUTRITION INITIATIVES USDA works to ensure USDA Foods support NSLP meal pattern requirements. The USDA Foods program helps improve the nutritional value of school meals by: Increasing fruit and vegetable options; Only offering whole grain-rich options; and Reducing levels of sodium, fat, and added sugar. NEW PRODUCT OFFERINGS The USDA has added some new food items to their wide variety of nutritious offerings. CEs may now request: Dried cranberries Unseasoned chicken strips Whole grain-rich blend pasta Whole grain-rich blend flour -COMING SOON- Frozen sweet potato chunks, waffle fry Mixed veggie blend Diced/Sliced turkey REFORMULATED USDA FOODS In recent years, USDA has reformulated products in every food category to lower the levels of sodium, sugar, and fat and to help offer nutrient-dense, kid friendly meals. The following are a few USDA Foods that have been reformulated to meet meal pattern requirements. Texas Department of Agriculture

16 Mozzarella Cheese Ham Products Spaghetti Sauce Fajita Chicken Strips Catfish Strips PROGRAM IMPROVEMENTS IN THE WORKS USDA is committed to helping program participants and administrators in their effort to provide nutritious school meals. This commitment is shown in a number of initiatives, including An evaluation of current product offerings to make sure allergens are included on the product label; A web solution that would allow participants to find vendor information for the foods offered in the USDA Foods program; and A new approach to the ordering and distribution of pasta products. BUSINESS PROCESS REVIEW (BPR) USDA is looking at ways to improve the USDA Foods program and is in the initial phases of a USDA Foods Business Process Review project. The BPR project team will include stakeholder representation from all groups participating in the domestic nutrition assistance programs. The project statement of work is currently under development. However, through this project, the work group plans to conduct a review of the USDA Foods procurement processes. TDA PROGRAM IMPROVEMENTS: COMMODITY WORKGROUP TDA has created a work group of stakeholders such as schools, ESCs, and processors to provide valuable input to enhance the operation of the USDA Foods program in Texas. The work group consists of 17 members appointed by the director of commodity operations. Participants attend monthly meetings via conference calls and serve a year term from May through April of the following year. Texas Department of Agriculture

17 If you are interested in becoming a member, TDA at CommodityOperations@TexasAgriculture.gov TDA PROGRAM IMPROVEMENTS: TX-UNPS ENHANCEMENTS Below are screenshots of the enhancements made in TX-UNPS. Entitlement Remaining added to help CEs track their entitlement balance as they are requesting USDA Foods in surveys. CEs can see how many units have been allocated to them. CEs can see how many units they have remaining out of their total requested units. Texas Department of Agriculture

18 WHOLE GRAIN-RICH PASTA TESTING TDA, in partnership with four Education Service Centers, recently conducted two whole grainrich pasta testings. The goal of the testing was to establish best practices and cooking tips for schools as they start to incorporate more whole grain-rich pastas into their menus. Based on the results of the testings, TDA is creating resources providing cooking tips on how to best prepare whole grain-rich pastas. These resources will be available on the Food Preparation page of the Boost Meal Appeal webpage by February BOOST MEAL APPEAL Do you need help planning your school s menu? TDA S Boost Meal Appeal webpage contains a wealth of information on topics such as meal planning, food preparation, marketing, and promotion. Texas Department of Agriculture

19 USDA FOODS NEWSLETTER In an effort to keep Food Distribution Program participants up-to-date on the most current happenings in the world of USDA Foods, TDA is developing a quarterly newsletter. Texas Department of Agriculture

20 MODULE 4: POLICY CN LABELING CN labels provide a way for food manufacturers to communicate with program operators about how their products may contribute to the meal pattern requirements. Program operators must keep records of the original CN label from the product carton. If the CN label is laser printed on the product carton or cannot be easily removed, then a photocopy or photograph of the valid CN label may be provided during an administrative review as acceptable documentation. The CN label must be visible and legible in photocopies and photographs. CN labels that are copied with a watermark are not acceptable documentation for an administrative review. If the actual CN label, photograph, or photocopy of the valid CN label is not available, school program operators may document the CN identification number and the product name on the bill of lading. During an administrative review, the bill of lading can be used as supporting documentation. The state reviewer will verify the information on the bill of lading. In this case ONLY, a copy of a watermarked label obtained from the manufacturer that has been verified by FNS may be used for documentation and menu planning purposes. CN LABELING: BEST PRACTICES CN labels and USDA Foods fact sheets are used as documentation during administrative reviews. As a best practice, TDA recommends Texas Department of Agriculture

21 MANAGEMENT OF DONATED FOODS AT PROCESSORS USDA prohibits more than a six month supply of donated food at processors based on calculations of average monthly usage. If you are unable to use your donated food inventories at processors, you should contact TDA for assistance. CARRYOVER POLICY If a CE is unable to use all the USDA Foods it diverted to a processor in the school year, the CE will have until November 30 of the following school year to use the carryover inventory. On November 30 TDA will remove carryover inventory from the prior year. Unused inventory will be allocated to schools that need more inventory to complete the school year or it is used to fill future orders. Texas Department of Agriculture

22 PROCESSING INVENTORY: WAIVER FOR BEEF AND CHICKEN Due to the difficulty of obtaining raw product for further processing and specifications on USDA Foods, some processors have had difficulty getting end products to schools. This caused an unexpected barrier for some schools to use their carry-over inventory in a timely manner. To help schools in this unique situation, TDA has issued a waiver to allow schools an extra year to draw down carry over pounds from SY This allows schools until November 2015 to use the carry over inventory of beef and chicken. PROCUREMENT All CEs must follow Federal procurement regulations when entering into contractual agreements with entities for goods or services. These requirements apply when a CE seeks the services of an entity such as a purchasing cooperative, group purchasing organization or group buying organization, or an entity offering to facilitate access to those types of entities. FOOD SERVICE MANAGEMENT COMPANIES (FSMCs), CATERERS, AND USDA FOODS When crediting for and using USDA Foods while in contracts with FSMCs or caterers, CEs must ensure the following: All discounts, rebates, and full value of USDA Foods are returned to CE. The FSMC may enter requests in TX-UNPS on behalf of the CE, if the assigned Food Service Director is part of the FSMC. Texas Department of Agriculture

23 The caterer must coordinate requests with the CE. The CE is responsible for submitting requests in TX-UNPS. In the FSMC or caterer contract, the CE must identify procedures or activities that will be necessary to comply with federal requirements for crediting and use of USDA Foods. KNOWLEDGE CHECK In these scenarios can you identify which CE is using CN Labels correctly? CE A: Made a copy of a CN label that was laser printed on a carton. However when she was photocopying the CN label, part of the label wasn t clearly visible. She used decided to use this as documentation in her administrative review. CE B: Did not have a CN label available. However, he used a bill of lading with the CN identification number and product name as documentation in his administrative review. CE C: Used a CN label with a watermark as documentation during her administrative review. Texas Department of Agriculture

24 MODULE 5: MISCELLANEOUS TOPICS RFP FOR COMMERCIAL DISTRIBUTION Once every five years, through the request for proposal process, TDA procures for commercial distributors. As a CE, this means your state-contracted warehouse could potentially change depending on the awarded contracts. Texas Department of Agriculture

25 STORAGE FEES First 45 days are free USDA prohibits long term storage (180 days) 46 th day short term storage fees 60 days TDA sends letters to CEs Reminder: Send payments for storage fees to contracted warehouses. TRANSFERS If a CE wants to transfer Regular USDA Food items or processed end products that come through the state contracted warehouses to another CE, the CE first contacts its warehouse. The warehouse will have a form for CEs to fill out in order to complete the transfer. Once TDA receives the transfer form, it will un-allocate the product from the transferring CE and reallocate the product to the CE that will be receiving the product. The reallocation does not utilize entitlement from the CE that will be receiving the product. TDA will send an to both parties providing notification of the transfer and the value of the Regular USDA Food product for auditing purposes. For the processed end products, the CE receiving the product must obtain the value from the CE transferring the product. Texas Department of Agriculture

26 USDA FOODS COMPLAINTS USDA, as well as TDA, wants to hear CE concerns regarding USDA Foods. If, in the judgment of CE personnel, the USDA Foods received do not meet specifications, or if there is a problem relating to the quality, appearance, texture, odor, etc. of the foods, contact TDA as soon as possible. Tip: Pictures speak volumes. Capture pictures of questionable foods and send them to TDA with complaint forms. Please fax/ completed form and photos to commodity operations at: CommodityOperations@TexasAgriculture.gov Fax Number: (888) USDA Foods Complaint Form: ionforms.aspx Reminder: The USDA Foods Complaint Form is not the same as the F&N Complaint Form. Texas Department of Agriculture

27 TX-UNPS: MESSAGE BOARD The Food Distribution welcome page contains the FDP message board. TDA posts important information pertaining to the program on this message board. COMPLETING THE CONTRACT PACKET Texas Department of Agriculture

28 TX-UNPS: CONTRACT PACKET Before a CE can start using its entitlement to request USDA Foods, the FDP contract packet in TX-UNPS needs to be completed.the CE needs to complete the Contracting Entity Information Update and the Checklist sections of the contract packet. CEs should also review the contact information for the food service director, ordering contact, billing contact, and delivery contact information to make sure the information is current and correct. Once all of these parts have been completed, the packet must be submitted for approval. Below you will find screenshots of each part of the contract packet. Texas Department of Agriculture

29 TX-UNPS CONTRACT PACKET: CE INFORMATION UPDATE Indicate if you will participate in Commodity Processing. Enter the amount of entitlement you will set aside for processing. Select your Processing Coop. Indicate if you will participate in DoD Farm to School and/or DoD Fresh. Leave this section marked as No. Texas Department of Agriculture

30 TX-UNPS CONTRACT PACKET: COMMODITY CONTACT PROFILE In the FDP Contract Packet you need to enter contact information for your Food Service Director, Ordering Contact, and Billing Contact. If the same person holds all three of these roles, the information from one contact can easily be imported into each contact profile. Tip: If the same person holds all three roles, use an alternate address in one profile. Texas Department of Agriculture

31 TX-UNPS CONTRACT PACKET: CHECKLIST The checklist contains documents that need to be submitted to TDA in order to complete the contract packet. The documents differ in number and type for direct and non-direct ship schools. DoD Information Sheet and Commodity Agreement Form: ionforms.aspx Texas Department of Agriculture

32 TX-UNPS CONTRACT PACKET: DELIVERY LOCATION PROFILE In the Delivery Location Profile you will find where and when the CE s USDA Foods will be delivered. Make sure the delivery contact s information is current and correct Texas Department of Agriculture

33 TX-UNPS: CE DELIVERY ORDER FORM Order form must be completed 48 business hours prior to delivery date. Texas Department of Agriculture

34 TX-UNPS: WEEKLY COMMODITY BULLETIN Each section of the Account Status will be discussed in detail. Fill in each callout box with a description of what each line represents. Your total available entitlement. Texas Department of Agriculture

35 As processing co-ops complete your orders, the entitlement will shift from Processing Reserved Rem to this line. The amount of entitlement that went towards the DoD Fresh Program. The total amount of entitlement you reserved for USDA Foods processing will appear here at the beginning of the program year. Total available entitlement for the program year. The Unfilled Requests line includes the value of the Regular USDA Foods and DoD FTS products that have not been allocated to you. This line is the Total Entitlement Used from the section above. Texas Department of Agriculture

36 Below the Account Status, you will see a Summary of Commodities in the Warehouse section. This includes items in free, short-term, and long-term storage. The Weekly Commodity Bulletin will show items in Free Storage, Short Term Storage, and Long Term Storage. Texas Department of Agriculture

37 You can also see the items expected to ship to your contracted warehouse within the next three months. The products listed are all of those requested by CEs that utilize that warehouse, so you might see products that you did not request. Those foods that you did not request will not be allocated to you. A useful feature found at the bottom of the Weekly Commodity Bulletin is the Export to Excel tab. This will export all of the information in the bulletin into an excel spreadsheet. Texas Department of Agriculture

38 SCHOOL YEAR 2016 TIMELINE Below is a guide to completing the FDP information in TX-UNPS for SY January 9 March 13, 2015: o Complete the contract packet, annual surveys, and processing surveys. January 9 January 30, 2015: o CEs need to indicate if they plan to participate in DoD Fresh Program and DoD Farm to School Program February 2, 2015: o DoD Fresh Program entitlement distribution March 13, 2015: o Annual and processing surveys close July 31, 2015 o DoD Farm to School survey closes KNOWLEDGE CHECK I want to set aside all of my entitlement for the DoD Fresh Program. Can I do this? If so, then how? Write your response here: Texas Department of Agriculture

39 I got a shipment of frozen strawberry cups that did not look or taste fresh. What do I do with the inventory that I have? Write your response here: FOOD DISTRIBUTION PROGRAM RESOURCES There are several resources available to help you learn more about the Food Distribution Program for Schools. (TDA Food and Nutrition) o FDP Handbook o NSLP Handbook: Administrators Reference Manual (ARM) Section 21. USDA Foods. (National Food Service Management Institute) o Online courses (American Commodity Distribution Association) o USDA Foods information o Policy resources (USDA Food and Nutrition Service) o FDP programs and resources Texas Department of Agriculture

40 CONFERENCES American Commodity Distribution Association Annual Conference May 3-5, 2015; Salt Lake City, Utah Texas Association for School Nutrition Conference June 21-24, 2015; Grapevine, Texas TECHNICAL ASSISTANCE If you have general questions regarding the USDA Foods Program, you may contact your local Education Service Center. If you should have any specific program questions, for example storage fees, status of contract packets, or allocation of food, please contact TDA. Contact: Tamara Barbery Phone: Or Texas Department of Agriculture

41 You understand and acknowledge that: the training you have completed does not cover the entire scope of the program; and you are responsible for knowing and understanding all handbooks, manuals, alerts, notices and guidance, as well as any other forms of communication that provide further guidance, clarification or instruction on operating the program. The Texas Department of Agriculture s Food and Nutrition Division is funded by the U.S. Department of Agriculture, Food and Nutrition Service. 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) 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 , by fax (202) or 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) ; or (800) (Spanish). USDA is an equal opportunity provider and employer. Texas Department of Agriculture