Operate a pricing program with free milk

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Transcript Operate a pricing program with free milk

Special Milk Program (SMP)
The Special Milk Program (SMP)
is funded by
the United States Department of Agriculture (USDA)
and administered by
the Colorado Department of Education (CDE)
Office of School Nutrition (OSN)
Historical Timeline
1942
1940
Continued
Expansion
Chicago & New York
1941
Omaha, Ogden, Birmingham,
St. Louis, & Boston
Historical Timeline
1954-55
1943
83rd Congress
authorized use of
Commodity Credit
Corporation funds
Cash
reimbursement for
Type C lunch
1946
Incorporated into the
NSLP
Historical Timeline
1955-56
1966
Reimbursed schools
of HS grade &
under for milk
served over and
above the amounts
they normally use
The SMP was
made a part of
the Child
Nutrition Act
1957
84th Congress extended the
program 2 more years &
included child-care centers,
settlement houses, nursery
schools, & summer camps.
Today the Special Milk Program or
SMP….
 Provides milk to children in schools, child care institutions and
eligible camps that do not participate in other Federal child
nutrition meal service programs. The program reimburses
schools and institutions for the milk they serve.
Requirements for Participation
 SCHOOLS
 Does not participate in a meal service program under HHFKA
OR
 Half-day pre-kindergarten or split session kindergarten programs with no
access to meal service
 Camps
 Must operate as a non profit program with tax exempt status – 501(c)(3)
 Does not participate in a meal service program under HHFKA
SMP Options
 Schools
 Option 1 - Operate a pricing program with free milk
 Option 2 - Operate a pricing program without free milk
 Option 3 - Operate a nonpricing program
When local school officials offer free milk under the program to
low‐income children, any child from a family that meets income guidelines
for free meals is eligible. Each child’s family must apply annually for free
milk eligibility.
 Camps
 Option 3 - Operate a nonpricing program
Pricing VS. Nonpricing
 Pricing – means there is a separate charge for milk, so that the
purchase of milk is optional . This shall include any such program
in which maximum use is made of Program reimbursement
payments in lowering or reducing to “zero” wherever possible
the price per half pint which children would normally pay for
milk per 7CFR§215.2(t).
 NonPricing - means program which does not sell milk to children.
This shall include any such program in which children are
normally provided milk, along with food and other services, in a
school or childcare institution financed by a tuition, boarding,
camping or other fee, or by private donations or endowments
per 7CFR§215.2(p).
Option #1
 Option 1 - Operate a pricing program with free milk
 Under this option, sponsors are reimbursed at the paid rate of
$.1925* cents for half pints of milk served to children who pay
for their milk. Sponsors are reimbursed for the actual weighted
cost of the milk served to children eligible to receive free milk.
*2012 reimbursement rate
Option #2
 Option 2 - Operate a pricing program without free milk
 Under this option, sponsors receive only the paid rate of $. 1925*
cents for half pints of milk served to children who pay for their
milk. There is no free reimbursement rate .
* 2012 reimbursement rate
Option #3
 Option 3 - Operate a nonpricing program
 Under this option, sponsors are reimbursed at the paid rate of
$.1925* cents for half pints of milk served free to all enrolled
children. Under this option the district absorbs any additional cost
beyond the current reimbursement rate.
*2012 reimbursement rate
Price Calculation




Reimbursement rate for the 2012-13 school year is .1925 per ½ pint.
Dairy/vendor charges the school . 30 cents per ½ pint*
School adds .05 handling fee for administrative/supply costs.
Price = 20 cents per ½ pint after rounding up to the nearest nickel.
Purchase price
School handling fee
Program cost
Less reimbursement
Price Charged
.30 (per ½ pint)
.05
.35
- .1925
.1575
.20
*If more than one price is paid cost is weighted
To Apply
 Schools
 When submitting your annual renewal application online select
SMP for those schools that will be participating in the SMP.
 Camps
 Contact CDE OSN by email
 An online application will be provided
 All sponsors must apply annually
Approval
 SMP sponsors will receive an approval letter by email
Tools Needed
 Schools
 Milk must be tracked on a Milk Participation Record form or
equivalent.
 Camps
 Milk must be tracked on a Daily Milk Inventory form or
equivalent.
Milk Offered
 Type
 At this time, the HHFKA in the SMP, only the milk fat restriction
(fat-free and low-fat milk requirement) applies.
 The limit on flavored milk and the milk variety requirement do
not apply to the SMP.
 All milk should contain vitamins A and D at levels specified by
the Food and Drug Administration.
 Amount
 A minimum of 8 ounces of fluid milk must be served.
Sponsors Must
Follow federal procurement guidelines for purchasing milk and milk supplies
Follow food safety guidelines
Operate the Program as a non-profit milk service
Comply with Civil Rights
Procurement
 Organizations must comply with federal procurement standards
CFR 215.14a; ensuring free and open competition
 Contracts exceeding $ 150,000.00 require formal bid
 Price quotes and bids must be documented
 Keep records (invoices and/or receipts) of all milk purchases
Food Safety
 Follow state and county health regulations
 All sponsors must store milk at 40° or below
 Schools must have a food safety program based on Hazard
Analysis and Critical Control Point (HACCP) principles.
Non-Profit
 Any school or non-profit child care institution that qualifies shall
receive the SMP upon their request.
 A non-profit milk service is intended to encourage the
consumption of milk with all income from the Program used
solely for the operation and improvement of the SMP.
Civil Rights
 Sponsors must ensure that:
 There is no physical segregation of or any discrimination against any
child because of race, sex, color, national origin, age, or handicap in the
course of milk service.
 Schools utilizing the “free milk” option, must not overtly identify
children receiving free milk benefits.
 When different types of milk are served to children, (a) a uniform price
for each type of milk served shall be charged to all non-needy children in
the school or child-care institution who purchase milk, and (b) needy
children shall be given the opportunity to select any type of milk offered.
 “And Justice For All Posters” are displayed in the sponsor’s office and
where milk is served.
 Non discrimination statement including complaint filing information
must appear on all materials related to the SMP.
Reimbursement
 Payments are made to program sponsors for the number of half -pints
of milk served each month to eligible children
 There is no limit to the number of half -pints each eligible child can
receive
 Claims are submitted online at the CDE OSN website under online
claims and services located at:
http://www.cde.state.co.us/cdenutritran/nutrionlineclaimsandservices.htm
 Claims must be submitted within 60 calendar days of claim month
Helpful Tips
 If providing milk in glasses, use a 10 ounce glass
 Submit your application on time!
 Keep all records organized and available for review
 Submit your claim for reimbursement on time!
 The legal size “And Justice for All” poster is 11 X 17 & can be
obtained from CDE OSN
 Keep all records for a minimum of 3 years plus the current fiscal year
Reviews
 All SMP sponsors will be reviewed a minimum of every 5 years*
 The review form used is available on the CDE OSN webpage
under Programs/Special Milk Program located at:
http://www.cde.state.co.us/cdenutritran/nutrimilk.htm
*School milk sponsors should be reviewed during their scheduled
Administrative Review.
Any moo questions?
Contact:
Jennifer Otey, Senior Consultant
Colorado Department of Education
Office of School Nutrition
1580 Logan Street, Denver CO 80203
Phone: 303-866-450
[email protected]