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					Section 4000
Managing the Program
Table of Contents

4100       Reimbursable Meals
           4110     Sponsor-Prepared Meals
           4120     Purchased Meals
                    4121    Unitized Meals
                    4122    Cycle and Non-Cycle Menus
           4130     Meals Purchased from a School Food Authority
           4140     Meals Purchased from a Food Service Management Company
                    4141    Factors Influencing Decision
                    4142    Regulations for School Food Authorities
                    4143    Submission of Bids
                    4144    Sponsor's Invitation for Bid
                    4145    Specifications of the Bid
                    4146    Food Service Management Company (FSMC) Bid
                            Requirements
                    4147    Sites Approved for Food Service
                            4147.1     Approved Levels of Meal Deliveries
                            4147.2     Adjusting Meal Deliveries
                            4147.3     Planning Delivery Routes
                            4147.4     Other Considerations
                    4148 Reimbursement
                            4148.1     Food Service Management Company
                                       Disallowances
                            4148.2     Default of Contract




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         4150    Meal Patterns
                 4151    Meal Pattern Requirements
                         4151.1    Meal Pattern Charts - Children One Year and
                                   Older
                         4151.2    Milk Requirements
                         4151.3    Additional Meal Service Requirements
                         4151.4    Limits on Meal Service – Failure to Correct
                                   Violations
                 4152    Variations in Meal Pattern Requirements for Religious
                         Reasons
                 4153    Meals for Children with Disabilities or Special Dietary
                         Needs
                         4153.1    Meals for Children with Disabilities
                         4153.2    Meals for Children with Special Dietary Needs
                 4154    Menu Substitutions
                 4155    Alternate Protein Products
                 4156    Grains/Breads Requirements
                 4157    Product Labeled Food
                         4157.1    Child Nutrition (CN) Labels
                         4157.2    Product Analysis
                         4157.3    Manufacturer’s Specifications
                 4158    Meal Service Schedule
                 4159    Meal Service Styles
                         4159.1    Offer Versus Serve
         4160    Meal Counts, Second Servings and Field Trips
                 4161    Limit on Quantity of Reimbursable Meals
                 4162    Second Meals During One Meal Service
                 4163    Field Trips and Off-Site Consumption of Food
                         4163.1    Field Trips
                         4163.2    Off-Site Consumption of Food




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4200       Claims for Reimbursement
           4210     Eligibility for Free or Reduced-Price Meals
                    4211      Income Standards
           4220     Enrollment of Children
                    4221 Confidentiality

4300       Program Administration
           4310     Management and Monitoring
                    4311    Pre-Approval Visits
                    4312    Staff Duties
                            4312.1     Director's Duties
                            4312.2     Assistant Director's Duties (large program only)
                            4312.3     Area Supervisor's Duties (very large program
                                       only)
                            4312.4     Bookkeeper's Duties
                            4312.5     Monitor's Duties
                            4312.6     Site Supervisor's Duties
                    4313    Public Release
                    4314    State Government Privacy Policy
           4320     Training
                    4321    Contractor Training
                    4322    Staff Training
           4330     Monitor Reviews
                    4331    Visits and Reviews
                    4332    Visits During the First Week
                    4333    Documenting a Visit
                    4334    Processing Monitor Reviews
                    4335    Quality of Monitors' Reviews
           4340     Food Service Operations
                    4341    On-Site Food Preparation and Safety Rules
                    4342    Estimating Costs
                    4343    Recycled Food and Excess Meals
                            4343.1 Recycled Food
                            4343.2 Excess Meals (Leftovers)
                    4344    Storage
                            4344.1     Care of USDA Commodities




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                 4345    Small Resource Farms and Gleaning
                         4345.1    Small Resource Farms
                         4345.2    Gleaning
         4350    Operation of Child Nutrition Programs During a Pandemic

4400     Nonprofit Food Service
         4410    Operating Costs
                 4411     Determining Food Costs
                 4412     Commodities
                 4413     Facilities Services Costs
                 4414     Depreciation
                 4415     Non-Food Supplies
                 4416     Transportation of Program Participants
                 4417     Meals Served to Adults
         4420    Elderly Feeding Program Support
         4430    Administrative Costs
         4440    Labor Costs
         4450    Direct Costs
         4460    Indirect Costs
         4470    Unallowable Costs
         4480    Credits and Program Income
                 4481     Credits
                 4482     Program Income
         4490    Filing Claims for Reimbursement
                 4491     Submittal Deadline
                 4492     Combining Claim Months
                 4493     Late Claims
                          4493.1      One-Time Exception
                          4493.2      Good Cause
                 4494     Amended Claims
                          4494.1      Upward Adjusted Amended Claims
                 4495     Financial Management System




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4500       Program Documentation
           4510   Retention Period
           4520   Availability of Records
           4530   Types of Records
                    4531    Checklist of Required Records
           4540     Required Forms




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                                                                            Section 4000
                                                                   Managing the Program

4100           Reimbursable Meals

You must serve meals that meet specific requirements for reimbursement. The meals that you
claim for reimbursement must:

   Meet Summer Food Service Program (SFSP) meal patterns (only school food authority
    sponsors may choose to use the SFSP pattern or the menu planning system in effect during
    the school year preceding the SFSP);
   Meet SFSP and local health standards;
   Be served to eligible children;
   Not exceed 2 percent seconds; and
   Be served according to federal and state regulations and policies.

Certain violations may cause you to lose reimbursement for the meals that you serve, including:

   Consistently serving an excessive number of meals as seconds or having an excessive
    number of meals left over;
   Allowing meals to be eaten off-site;
   Not serving meals as a unit;
   Serving meals to non-program adults;
   Serving meals outside the approved time frames; and
   Serving meals in excess of approved levels.

You must identify and use a specific method of meal preparation to provide meals to program
participants. You may:

   Prepare your own meals;
   Obtain meals from a school;
   Obtain meals from a school food service authority (SFA); or
   Obtain meals from a food service management company (FSMC).

NOTE: You cannot contract or delegate responsibility for the management of the program.
Management responsibilities include, but are not limited to, site supervision, monitoring,
enforcing corrective action and preparing program applications.

In making a choice, you should consider the following:

   Cost of meals;



Managing the Program -- 6                                Texas Department of Agriculture – May 2009
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   Number of meals required;
   Type of meal service;
   Number of sites participating;
   Type of sites; and
   Facilities available at each site.

You must use the Food Buying Guide (FBG) for Child Nutrition Programs revised November
2001. The FBG is the best resource for determining the amount of food to purchase, and the
contribution that each food makes toward meal pattern requirements. In addition to providing
helpful information supporting the successful management of a food service operation in the
Child Nutrition Program, the FBG periodically incorporates new food items and updates the
standards of identity for many others.

4110            Sponsor-Prepared Meals

Many sponsors choose to prepare their own meals. This method allows maximum control over
the quality of the meal preparation. Depending on the facilities available at its sites, a sponsor
may prepare meals at each site location or at a central kitchen. Preparing meals at the site
requires that each site have adequate kitchen and storage facilities. Sponsors preparing meals at
a central kitchen must decide how they are going to distribute the meals from the central
kitchen to the sites. Sponsors preparing their own meals either at each site or at a central kitchen
may receive additional administrative reimbursement.

4120            Purchased Meals

Sponsors may contract with a food service management company (FSMC), a school or a school
food authority (SFA) to:

   Prepare and serve unitized meals (with or without milk or juice), or
   Operate the sponsors' entire food service operation.

SFAs that contract with an FSMC are eligible to receive commodities for use in the SFSP only if
they conducted:

   One competitive FSMC procurement for meal service under both the National School Lunch
    Program (NSLP) and the SFSP, or
   Two separate competitive FSMC procurements for the NSLP and the SFSP individually and
    both competitive procurements were awarded to the same FSMC.

NOTE: An FSMC cannot subcontract for the total meal or for the assembly of meals.

4121            Unitized Meals



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FMSCs and SFAs must provide complete unitized meals to a sponsor's sites. Meals must be
packaged, delivered and served as a unit. Milk and juice, which may be packaged separately,
can be delivered and served as separate meal components, but the milk and juice are still
considered part of the meal unit. Unless the Texas Department of Agriculture (TDA) has
approved a waiver of the unitized meal requirement, you will only be reimbursed for unitized
meals that are served to eligible participants.

4122           Cycle and Non-Cycle Menus

Sponsors that use a vendor such as a school food authority or food service management
company to prepare program meals are required to submit an 11-day cycle menu. The cycle
menu provided may exceed 11 days. Meals will not be disallowed if cycle menus are not
followed as long as meals served meet requirements for quantities and components.

4130           Meals Purchased from a School Food Authority

Sponsors may purchase meals from a SFA that participates in the NSLP, provided that
the SFA does not obtain meals or management services from a FSMC. Most schools
have meal preparation and service facilities since they serve meals to children during
the school year. Also, experienced school food service personnel are often available for
summer jobs. Most schools participate in the NSLP/SBP. If meals will be prepared for
the SFSP in these schools, you can serve meals that meet the requirements of these
programs rather than the SFSP meal patterns. As part of your application for the SFSP,
you should submit a request to serve these meals.

Sponsors are encouraged to contact the superintendent of schools or principals of local
nonprofit private schools to determine whether they can obtain meals from a school.
This arrangement requires either a written agreement or a contract with the school.

4140           Meals Purchased from a Food Service Management Company

Sponsors that contract with a FSMC to obtain meals must meet various program requirements
and follow certain procedures. These operations are called vended programs. FSMCs include
commercial companies that prepare meals using school facilities, the sponsor's facilities and
their own facilities. Public schools that use their own facilities to prepare meals are included in
this definition. Sponsors may contract with schools to prepare meals.

FSMCs that enter into a contract with a sponsor to prepare and deliver meals must provide
meals that comply with program regulations and their contract with the sponsor. Therefore,
both sponsors and FSMCs should be familiar with the information in this section. A successful




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vended program depends on both parties fully understanding their mutual responsibilities in
the program.

Sponsors cannot contract with school food authorities (SFAs) that contract with FSMCs.
Sponsors may:

   Competitively procure meals from the lowest bidder, or
   Enter into an agreement for food service with an SFA that does not obtain meals or
    management from an FSMC.

NOTE: An SFA that contracts with an FSMC is considered to be "self-preparation" (not vended)
and is eligible to receive self-preparation rates of reimbursement if the SFSP site supervisor is
under the direction of an SFA employee and the SFA:

   Is the sponsor;
   Uses school facilities to prepare the meals;
   Has an exclusive year-round contract with the FMSC; and
   Uses district-approved employees to prepare the meals.

4141           Factors Influencing Decision

Several factors influence a sponsor's decision to contract for meals with a FSMC. These factors
may include:

   Limited personnel,
   A site that is unsuited for meal preparation, or
   A large number of sites spread over a wide geographical area.

Before inviting FSMCs to bid on a program, sponsors must contact their local SFA about the
possibility of using school facilities to prepare meals, or of obtaining meals under agreement
with a school. Using the facilities of local public or private schools to prepare or obtain meals
offers several advantages to a sponsor. These schools often prepare a large number of meals and
already have the facilities, staffing and system for such a service. Many schools are accustomed
to preparing meals that meet USDA requirements if they participate in other child nutrition
programs. When exploring a school's ability for meal service, sponsors must consider whether
an adequate delivery service to sites can be established. This delivery service cannot be
prohibitive in cost, and it must meet local health and sanitation requirements.

Sponsors that can use local school food service facilities must enter into a written agreement
with the school. If contracting with a local school is not possible, sponsors may contract with an
FSMC to prepare and deliver meals.




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Sponsors are legally responsible for ensuring that a food service operation meets all
requirements specified in the FND Agreement.

4142           Regulations for School Food Authorities (SFAs)

An SFA that contracts with an FSMC is subject to the following regulations.

FSMC staff cannot:

   Serve as the sponsor representative at the mandated training;
   Complete the SFSP application or enter into SFSP contract negotiations;
   Perform contractor self-monitoring;
   Serve as a site supervisor;
   Conduct SFSP training for SFA staff;
   Perform accounting functions (including payment of SFA staff and bills, including the cost
    of meals); or
   Enforce corrective action.

FSMC staff may:

   Pay for labor for food production;
   Prepare menus in accordance with SFSP procedures;
   Plan meals and purchase food; and
   Manage food service accounts receivable.

SFAs contracting with FSMCs that perform administrative NSLP functions during the school
year must amend their contract to ensure the FSMCs do not perform administrative functions in
the SFSP.

4143           Submission of Bids

An FSMC’s bid in response to an invitation for bid (IFB) must include a copy of the required
health certificate.

If an FSMC submits a bid in excess of $100,000, it must submit a bid bond in an amount
determined by the sponsor. The bond should be between 5 percent and 10 percent of the value
of the contract for which the bid is made. A copy of the bid bond must accompany each bid. The
bond must be from one of the companies listed in Department of Treasury Circular 570, which
is available from the Department of Treasury, Fiscal Service, Bureau of Financial Operations,
Washington, D.C. 20226; or online at http://www.fms.treas.gov/c570 by clicking on "Treasury's
Listing of Approved Sureties (Department Circular 570)."




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FSMCs must bid on all the meals listed in the IFB and must bid on the menu cycles included in
the IFB. FSMCs cannot be candidates considered unless they respond to every requirement
listed in the IFB.

4144           Sponsor's Invitation for Bid

When sponsors have entered their particular specification in the standard invitation for bid and
contract, the document is referred to as the invitation for bid (IFB). The IFB is the most
important step in the process.

Sponsors must:

   Complete the estimated range of servings;
   Decide on an affordable and attractive menu;
   Complete the site schedule; and
   Supply the IFB to all companies responding to the public announcement.

The sponsor's IFB must be completed to include:

   A menu cycle (at minimum 11 days);
   Food specifications and meal quality standards;
   A copy of the SFSP regulations; and
   Non-food items essential for conducting the contracted service.

Sponsors may not include the following in their IFB:

   Specifications for a minimum price;
   Specifications for special meal requirements to meet ethnic or religious needs, unless the
    special requirements are necessary to meet the needs of the children to be served;
   Provisions for loans or any other monetary benefit, term or condition to be made to
    sponsors by FSMCs; and
   Provisions for non-food items, except if the items are essential to the conduct of contracted
    service.

4145           Specifications of the Bid

The sponsor must complete the following information in an invitation for bid (IFB) to ensure
that potential bidders understand the specifications of the bid:

   Site Information. The sponsor must include a list of proposed site names, addresses,
    delivery locations and times. With this information, a bidder can estimate the cost of
    delivery and the feasibility of meeting the sponsor's requirements.



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   Menu Cycle. The sponsor must also attach an 11-day (or longer) menu cycle that lists the
    types and amounts of food in each meal. Program regulations specify minimum meal
    pattern requirements, but sponsors may improve upon these minimums to increase the
    variety and appeal of menus. Sponsors may request approval from the TDA for variations
    from the meal requirements only when necessary to meet ethnic, religious, economic or
    nutritional needs.
   Meal Requirements. As part of the IFB, the sponsor must provide the FSMC with a copy of
    the meal requirements outlined in the SFSP regulations. The sponsor must also provide a
    copy of the minimum food specifications and model meal quality standards required by
    SFSP regulations. (Sponsors can get the regulations from TDA.) The FSMC must deliver
    meals that meet quality standards. Under the provisions of the contract between the sponsor
    and the FSMC, the sponsor is liable only for the delivered meals that meet these
    requirements and should not pay for ineligible meals. Similarly, the sponsor may receive
    payments from TDA only for meals served that meet these requirements.

    During food preparation, the FSMC should regularly inspect and measure items to ascertain
    correct sizes and weights. Setting production equipment for the desired specifications is no
    substitute for a quality control system, because equipment settings may become distorted
    during operation. TDA and sponsors are responsible for sampling meals and disallowing
    payment for meals if any component does not meet minimum standards.

    Sponsors must ensure FSMCs provide unitized meals. This means that meals must be
    individually portioned, packaged, delivered, and served as a unit. Milk and juice may be
    packaged separately, but are still considered part of the meal unit. Other variations of
    unitized meals can be approved by TDA. Specifications should be worded in such detail
    that all bidders have an equal chance to compete for the same menus. The specifications
    should also indicate under what conditions substitutions may be made by the FSMC if,
    during the course of the program, certain specified foods are unavailable or become too
    expensive.
   Regulations. The sponsor must attach a copy of the SFSP regulations to the IFB and must
    agree to operate the program according to the regulations.
   Meal Range Adjustments. In the past, actual participation under a given sponsorship
    frequently varied from the estimate specified in the IFB. The contractor bases a bid on the
    specifications and expects to be serving close to the number of meals listed in the estimate.
    A sizable discrepancy between estimated and actual participation can increase or decrease
    the FSMC's unit production cost. Therefore, the sponsor may estimate a possible range of
    meals served per day. FSMCs must submit prices for each range the sponsor lists, and must
    keep in mind that if the sponsor decreases the number of meals served, the cost of the meals
    may increase. The range is provided to lessen the risk of losses to the FSMCs in these cases.
    Sponsors may increase or decrease the number of meal orders specified in the IFB only after
    notifying the FSMC. Increases in maximum meal service levels at sites receiving vended
    meals must be approved by TDA.



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4146           Food Service Management Company (FSMC) Bid Requirements

Before contracting for the program, the FSMC must assess the sponsor's capability to:

   Meet the terms of the contract, and
   Reimburse it for all meals that are properly delivered.

If applicable, the FSMC should become familiar with the records of SFSP sponsors or sponsors
of other federally funded programs.

When submitting a bid, an FSMC must comply with the following requirements:

   Health Certification and Inspection. FSMCs must have state or local health certification for
    the facilities that they use to prepare meals for the SFSP. The companies must ensure that
    health and sanitation requirements are met at all times. In addition, the companies must ask
    local health authorities or independent agencies to periodically inspect the meals they serve
    to determine bacteria levels. These levels must conform to the standards applied to other
    contracted service establishments in the area.

    FSMCs should also know that the TDA may send health inspectors to check preparation
    facilities and meals. This inspection is independent of the one that the FSMC provides. The
    companies must submit health certification as part of the bid.

   Records. FSMCs must maintain records that the sponsor uses to meet program
    responsibilities. Companies must report to the sponsor at the end of each month or more
    often. The FSMC must maintain accounting books and records concerning the sponsor's
    food service operations for three years from the day the company receives final payment.
    Representatives of TDA, the USDA and the U.S. Government Accountability Office (GAO)
    may request an inspection and audit of these records at a reasonable time and place.

   Subcontracts. FSMCs may not subcontract with another company for the total meal (with or
    without milk) or for assembling of the meal. The variation between contracted and
    subcontracted meal prices is an unnecessary expense. Subcontracting means the sponsor
    does not have a contract with the company that prepares meals and, therefore, cannot
    directly control the quality and supply of the meals.

   Contract Responsibility. It is important for the prospective FSMC to realize that the contract
    is a private contract between the FSMC and the sponsor. Neither USDA nor TDA has any
    jurisdiction in the reimbursement made to the FSMC.




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4147           Sites Approved for Food Service

Sponsors must provide the FSMC with a list of approved food service sites, indicating the limit
on the number of meals that may be claimed for reimbursement for each site. Some approved
sites, for one reason or another, are canceled or dropped from participation before the food
service operations begin. A new list must be provided to the FSMC in time for it to start the
food service operations. The sponsors must notify the company within the time limits mutually
agreed upon in the contract if any site on its delivery schedule is being dropped or canceled.

4147.1         Approved Levels of Meal Deliveries

TDA determines an approved level of meal service for each vended site. These levels are the
maximum number of meals, including any unplanned seconds that may be served at a site at
one meal service. You can request that these levels be allowed to change when participation
fluctuates throughout the summer. Sponsors of vended sites receive a written confirmation
from TDA of the approved levels.

4147.2         Adjusting Meal Deliveries

One of the principal topics for discussion in the award conference is the adjustment of meal
deliveries. The sponsor should establish a system for:

   Collecting information from its sites about attendance changes;
   Translating these changes into adjustments in the meal order; and
   Communicating these adjustments to the food service management company (FSMC).

The FSMC should have an organized system for:

   Ensuring that delivery receipts are changed to reflect adjusted meal orders (this is of
    primary importance);
   Receiving orders for delivery adjustments;
   Documenting orders for delivery adjustments;
   Adjusting production levels, if necessary; and
   Ensuring that adjusted meal orders for each site are correctly packaged and loaded for
    delivery.

The FSMC's key personnel must be aware of these responsibilities (for example, delivery
personnel must understand that site supervisors cannot independently request more or fewer
meals). Attendance at sites will probably decrease during the summer, especially if there is no
organized activity at a site other than the food service. The sponsor may be able to anticipate
certain fluctuations in attendance and make arrangements in advance with the FSMC to adjust




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orders (for example, a consistent drop in attendance each Friday could be resolved by reducing
the number of meals delivered for that day only).

Whenever possible, meals can be transferred from a site with too many meals to a site with a
shortage. The sponsor's monitors should be aware of the procedures for handling extra meals so
they can assist site supervisors in making transfers or other arrangements.

During the summer, sites may cease contracted service operations on either a temporary or
permanent basis. Also, new sites may be authorized to participate in the SFSP. Site deletions
and additions may make changes in delivery routes and production levels, and will require the
FSMC's cooperation. The sponsor is responsible for ensuring the FSMC is informed of any need
for such changes.

4147.3 Planning Delivery Routes

The FSMC must carefully plan delivery routes and schedules and should review them with the
sponsor. Sites without adequate storage facilities must receive all meals within one hour of the
meal service. Delivery personnel for FSMCs should become familiar with their routes before the
SFSP starts. The FSMC or the sponsor should periodically evaluate and restructure the routes if
deliveries for some sites are consistently late. The FSMC is responsible for ensuring that
sufficient equipment is available, such as additional trucks and refrigerators, to handle changes.

Sponsors must plan how meals will be served when the weather is bad, or how meal service
will be canceled at sites lacking sheltered facilities. Sponsors should notify FSMCs of these
contingency plans.

4147.4 Other Considerations

FSMCs and sponsors should establish a system for communicating and resolving complaints.
Problems can be resolved efficiently when the sponsor and the FSMC designate staff to receive
and respond to suggestions and complaints in a timely fashion.

4148           Reimbursement

Under the SFSP, a sponsor is reimbursed for eligible meals that are properly served to eligible
children. Therefore, if sponsors do not meet their responsibilities (such as ensuring that meals
are eaten only on site), meals may be disallowed. This may not result in a loss of payment to the
FSMC.

NOTE: The contract between a sponsor and a FSMC should clearly specify that sponsors must
pay for meals delivered by the FSMC. TDA and the USDA are not interested parties in these
contracts. Federal reimbursement is based solely upon program performance and is paid



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directly to sponsors. Sponsors must inform a FSMC if TDA disallows payment for any meals.
Sponsors are still responsible for payment even if TDA disallows reimbursement.

4148.1 Food Service Management Company Disallowances

Sponsors do not reimburse FSMCs that change menus or substitute components without the
sponsor's prior approval, or deliver meals:

   That are not unitized;
   That are wholly or partially spoiled;
   Outside the designated delivery times;
   With components that are less than the required size or weight; and
   That are incomplete.

4148.2        Default of Contract

Sponsors may terminate a contract if the FSMC does not comply with its terms. Sponsors must
notify the FSMC (and surety company if a performance bond is required) of specific instances of
unsatisfactory performance. If the FSMC does not immediately take corrective action, sponsors
may request the surety company to provide another FSMC, or sponsors may negotiate another
contract on a competitive basis. If the sponsors decide to negotiate on a competitive basis, they
must contact several FSMCs for prices and try to choose the most qualified company at the most
economical price. The defaulting FSMC (or surety company, if applicable) is liable for any
difference in price between the original price and the repurchase price.

If the lowest bidder is unable to provide the number of meals required, the sponsor must enter
into a contract with another FSMC. The FSMC chosen must be the next lowest bidder.

4150          Meal Patterns

Meals served at SFSP sites must meet certain requirements that ensure well-balanced meals
with the components and amounts of food children need to help meet their nutrient and energy
needs. The meal patterns establish the minimum amounts of various meal components sponsors
must serve to each child to receive reimbursement for each meal.

This section includes the meal pattern requirements for children from one through 18 years old.
Sponsors serving older children may serve more than these minimum quantities. In some cases,
the TDA may allow sponsors to serve smaller portions of food if sponsoring a group of children
under six years of age. Sponsors serving smaller portions must:

   Receive prior approval from TDA;




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      Meet the meal pattern requirements for younger children established by the child care food
       program regulations; and
      Demonstrate to TDA that they can control portion sizes and ensure that the variations in
       portion size are according to the age levels of the children served.

Sponsors that are approved to serve children under one year old must comply with applicable
meal patterns for infants, and should contact their F & N FOO to obtain those charts.

4151                   Meal Pattern Requirements

4151.1 Meal Pattern Charts - Children One Year and Older


    SELECT THE APPROPRIATE COMPONENTS FOR A REIMBURSABLE MEAL
    FOOD COMPONENTS AND                       BREAKFAST                         LUNCH OR SUPPER            SNACKS
    FOOD ITEMS
                                              Serve all three                   Serve all four             Serve two of the four
    Milk1,2
    Milk, fluid                                    1 cup (8 fl oz) 1                   1 cup (8 fl oz) 1          1 cup (8 fl oz) 1

    Vegetable or Fruit3,4,5
    Juice, fruit and/or vegetable              1/2 cup 3 (juice must be                3/4 cup 4 total     3/4 cup 3,5 (juice must be full-
                                                    full-strength)                                                    strength)

    Grains/Breads6,7
    Bread or                                            1 slice                            1 slice                     1 slice
    Cornbread or biscuit or roll or muffin,           1 serving                           1 serving                  1 serving
    or
    Cold dry cereal 7 or                          3/4 cup or 1 oz 7                         N/A                   3/4 cup or 1 oz 7
    Hot cooked cereal or                               1/2 cup                             1/2 cup                    1/2 cup
    Cooked pasta or noodles or grains                  1/2 cup                             1/2 cup                    1/2 cup

    Meat/Meat Alternates8,9,10,11,12          (Optional)
    Lean meat or poultry or fish 8 or                    1 oz                                2 oz                       1 oz
    Alternate protein products 9 or                      1 oz                                2 oz                       1 oz
    Cheese or                                            1 oz                                2 oz                       1 oz
    Egg (large) or                                  1/2 large egg                        1 large egg               1/2 large egg
    Cooked dry beans or peas or                        1/4 cup                             1/2 cup                    1/4 cup
    Peanut butter or soynut butter or other            2 Tbsp                              4 Tbsp                      2 Tbsp
    nut or seed butters or
    Nuts and/or seeds 11 or                               ---                          1 oz = 50% 10,11                1 oz 11
    Yogurt, plain or flavored,                      4 oz (1/2 cup)                      8 oz (1 cup)               4 oz (1/2 cup)
    unsweetened, or sweetened –
    commercially prepared
                                                                See notes next page.




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        1    For Breakfast or Snack, fluid milk shall be served as a beverage, or on cereal, or use part of it for each purpose.
        2    For Lunch or Supper, fluid milk shall be used as a beverage.
        3    Fruit or vegetable juice must be full-strength for Breakfast and Snacks.
        4    For Lunch or Supper, serve two or more kinds of vegetable(s) and/or fruit(s). Full-strength vegetable or fruit juice may be counted
             to meet not more than one-half of this requirement.
        5    Juice may not be served to fulfill the supplement requirement, when milk is served as the only other component.
        6    Grains/Breads must be enriched or whole-grain, or made from whole-grain or enriched flour or meal that may include bran and/or
             germ. Cereal must be whole-grain or enriched or fortified.
        7    Either volume (cup) or weight (oz), whichever is less.
        8    A serving consists of the edible portion of cooked lean meat or poultry or fish.
        9    Alternate protein products must meet requirements in Appendix A of 7 CFR Part 225.
        10   Nuts and seeds may meet no more than one-half of the total Meat/Meat Alternate to fulfill the Lunch or Supper requirement.
         Nuts and seeds are generally not recommended to be served to children ages 1-3 since they present a choking hazard. If served,
        11

         nuts and seeds should be finely minced.
    (See your Food Buying Guide for more details.)                                                   Chart Revised by TDA FND – Sep 2003




    Sponsors may serve components that are not listed in the meal pattern requirements. They may
    also serve more than the minimum quantities required. Sponsors are not reimbursed for meals
    that do not meet the minimum meal pattern requirements.

    4151.2                   Milk Requirements

    You may serve any type of pasteurized milk, flavored or unflavored. The milk may be whole,
    low-fat, skim or cultured buttermilk, provided it:

            Meets state and local standards for fluid milk;
            Is served in amounts meeting appropriate program requirements; and
            Contains vitamins A and D. Low-fat and skim milk must be fortified with vitamins A and D
             at the levels meeting Food and Drug Administration requirements.

    Additionally, you may serve one of the following items if it meets standards for fluid milk.

            Milkshakes may be used to meet the milk components of lunches, snacks and suppers if
             they contain the minimum quantity of fluid milk appropriate for the age group served.
             Commercial milkshakes must contain the correct quantity of grade A fluid milk. Those
             made with powdered milk are not creditable. If contractors serve commercial milkshakes,
             they must obtain documentation from state and local health officials verifying that the
             milkshake meets SFSP requirements. The milkshake must be defined as fluid milk in the
             area where served.
            Ultra High Temperature (UHT) milk is a fluid milk that is pasteurized by heating the milk
             to a minimum temperature of 280 degrees Fahrenheit for two to three seconds. This
             temperature destroys all active pathogenic and spoilage microorganisms. UHT milk can be
             stored without refrigeration for three to 12 months.



    Managing the Program -- 18                                                            Texas Department of Agriculture – May 2009
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       Acidified milk is a fluid milk produced by souring fluid whole, low-fat or skim milk with an
        acidifying agent. Examples of acidified milk are "acidified kefir milk" and "acidified
        acidophilus milk."
       Cultured milk is produced by adding selected microorganisms to fluid milk to produce a
        special flavor and/or consistency. Examples of cultured milk are "cultured buttermilk,"
        "cultured kefir milk" and "cultured acidophilus milk."
       Lactose reduced milk is a fluid milk modified by the addition of lactose enzymes from a
        yeast source. People who cannot digest the lactose in milk may benefit from a lactose-
        reduced low-fat milk.

    NOTE: Breast milk may be served at meals, snacks or other appropriate times throughout the
    day in place of fluid milk for children who are breastfeeding. Breast milk should be properly
    identified and labeled with the child's name and date that the milk was collected. Breast milk
    can only be served to the particular child designated by the parent as the nursing child.

    4151.3 Additional Meal Service Requirements

    In addition to serving meals that meet the meal pattern requirements, you must:

       Ensure that children eat all meals on-site. Site personnel must supervise all children on the
        site while they are eating meals. Only meals that children eat on-site are reimbursable. See
        the exception to this requirement in Item 4163, Field Trips and Off-Site Consumption of
        Food; and
       Serve one meal to each child in attendance at a site before serving a second meal to a child.

    4151.4 Limits on Meal Service – Failure to Correct Violations

    TDA limits sponsors to one meal service per day at each site it finds in violation of the meal
    service requirements if the site does not take corrective action within a reasonable time. If the
    meals are not prepared on-site, TDA does not approve more than one meal service at that site
    unless:

       Each meal can be delivered separately within one hour of beginning of the meal service, or
       Proper facilities exist on-site for food storage.

    4152           Variations in Meal Pattern Requirements for Religious Reasons

    TDA may approve variations in meal patterns to meet religious needs. If one of your
    sites wants to serve meals that vary from USDA meal patterns, you must submit an
    alternate meal pattern with justification to your F & N FOO.




    Texas Department of Agriculture – May 2009                         Managing the Program -- 19
    Summer Food Service Program Handbook
Jewish facilities may be exempted from the enrichment portion of the bread requirement if they
choose to substitute unenriched matzo for the required grains/breads component during the
observance of Passover.

Jewish facilities may also be exempted from the meal pattern requirement that milk be served
with all lunches and suppers. This exemption applies only to meals containing meat or poultry
since Jewish Dietary Law allows milk to be served with meat alternates such as fish, cheese,
eggs, nut and seed butter, and nuts and seeds. Jewish facilities that request an exemption must
choose from the following three options.

   Option I - Serve an equal amount of full-strength juice in place of milk with lunch or supper.
    Juice substituted for milk cannot contribute to the vegetable/fruit requirement.

    If the site operates five days a week, it may substitute juice for milk twice per week for
    lunches and twice per week for suppers, but is only allowed one substitution per day.

    If the site operates seven days a week, it may substitute juice for milk three times per week
    for lunches and three times per week for suppers, but is only allowed one substitution per
    day.

    Milk substitutions are limited since milk is a primary source of calcium and riboflavin.
    When using Option I, sites should serve other sources of calcium (broccoli and greens) and
    riboflavin (dark green and yellow fruits and vegetables and whole grain or enriched breads
    and cereals).

   Option II - Serve milk at an appropriate time before or after the meal service period, in
    accordance with applicable Jewish Dietary Law.
   Option III - Serve a supplement (snack) juice component at lunch or supper. Serve the lunch
    or supper milk component as part of a supplement (snack).

NOTE: An exemption is not necessary for breakfast.

Sites should notify you if they want to request an exemption. You must obtain approval for an
exemption from your FOO before claiming reimbursement.

Seventh-Day Adventist sites may use meat analogues (that is, plant protein products) at the 100
percent level to meet the meat/meat alternate component and quantity requirements for
lunches, suppers and supplements.

Meat analogues are nutritionally comparable to and acceptable as meat alternates. They are
foods of plant origin, usually soy and wheat, which are made to resemble meat, poultry and fish
in appearance, texture and flavor.



Managing the Program -- 20                                  Texas Department of Agriculture – May 2009
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Sites should notify you if they want to request an exemption. You must obtain approval for an
exemption from your FOO before claiming reimbursement.

4153           Meals for Children with Disabilities or Special Dietary Needs

For children with disabilities or special dietary needs you must:

   Provide substitutions on a case-by-case basis;
   Document substitutions made to meals;
   Maintain the required medical statement in your files; and
   Not assess a charge to children with disabilities or with certified special dietary needs who
    require food substitutions or modifications to program meals.

You will be reimbursed at the standard meal rate established by USDA.

4153.1         Meals for Children with Disabilities

You must substitute food items or provide special meals for children who have disabilities that
restrict their diets. The parent or guardian of a child with a disability must request special meals
and provide a licensed physician's signed statement that states the following:

   The child's disability and an explanation of why the disability restricts the child's diet;
   The major life activity affected by the disability;
   The food or foods to be omitted from the child's diet; and
   The food or choice of foods that must be substituted.

Children who have a food allergy that results in a severe, life-threatening (anaphylactic)
reaction when exposed to the food meet the definition of disabled, and are entitled to receive
dietary substitutions as prescribed by a physician.

Children with chewing and swallowing difficulties may need menus modified to include softer
foods (for example, carrots that are cooked rather than raw) and some foods that are chopped,
ground or blended. These modifications can usually be made within the meal pattern
requirements. A physician's written instructions indicating the appropriate food texture is
recommended, but not required.

4153.2         Meals for Children with Special Dietary Needs

Children who are not disabled, but who have certified medical or other special dietary needs,
may also be served substitutions. This includes children with a food intolerance (such as lactose
intolerance) or with a food allergy that does not result in a life-threatening (anaphylactic)
reaction when exposed to a food to which they are allergic. The child's parent or guardian must



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provide a statement signed by a licensed recognized medical authority (physician, physician's
assistant, nurse practitioner) that identifies the:

   Medical or other dietary need that restricts the child's diet;
   Food or foods to be omitted from the child's diet; and
   Food or choice of foods to be substituted.

NOTE: Lactose intolerance is a term used to describe difficulty in digesting lactose, the sugar
found in milk and milk foods. Sometimes symptoms associated with lactose intolerance can be
reduced or eliminated if:

      Small, frequent portions of milk are consumed rather than large portions;
      Milk or milk foods are consumed along with other foods; or
      The following are consumed: whole or chocolate milk, yogurt with active cultures, ice
       cream and aged hard cheeses like cheddar and Swiss.

If you have a child participating in your program who is lactose intolerant, you are encouraged
to provide lactose-reduced milk as a fluid milk choice. You are also encouraged to check with
your milk supplier to determine the availability of lactose reduced milk. If you substitute
lactose reduced milk for other milk, you must do so at no extra charge to the child.

If a parent or guardian tells you that their child needs lactose-reduced milk, you can provide
lactose reduced milk as a creditable part of a reimbursable meal. If you serve a child a meal
without milk, you cannot claim the meal for reimbursement unless you have the medical
statement required for children with special dietary needs, as outlined above.

4154           Menu Substitutions

If the planned quantity of a posted menu item is insufficient (for example, you run out of an
item), you can substitute another item, but must record both items on production records. You
must document both actual names and quantity of foods prepared and served on the
production records. Meal components, including substitutions, must be identified by specific
name and quantity to allow verification that the meals meet SFSP requirements.

4155           Alternate Protein Products

Alternate Protein Products (APP) – formerly referred to as Vegetable Protein Products – can be
credited as a Meat/Meat Alternate on an ounce-for-ounce basis .

You may use commercially prepared Meat/Meat Alternate products combined with APP or a
product that contains only APP. Examples of combination items include beef patties, beef
crumbles, pizza topping, meat loaf, meat sauce, taco filling, burritos and tuna salad. The APP




Managing the Program -- 22                                   Texas Department of Agriculture – May 2009
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may be used in a nonhydrated, partially hydrated or fully hydrated form. The moisture content
of a fully hydrated APP, if prepared from a dry concentrated form, must be such that the
mixture has a minimum of 18 percent protein by weight or equivalent amount for the dry or
partially hydrated form (based on the level that would be provided if the product were fully
hydrated).

You should maintain documentation from the manufacturer that an APP meets protein quality
standards mandated by the SFSP.

Examples of documentation include but are not limited to:

   A specification sheet;
   A letter attesting that the requirements were met;
   A food product label with an ingredient listing; or
   A child nutrition (CN) label.

You are encouraged to accurately describe the menu items that are served to participants. This
will assist your staff and participants when selecting menu items that are consistent with
dietary needs. You must accommodate participants with special dietary needs or disabilities as
specified in Item 4153.2, Meals for Children with Special Dietary Needs.

4156           Grains/Breads Requirements

Each serving of grains/breads must contain at least 14.75 grams (0.52 ounces) of enriched or
whole-grain meal or flour, bran or germ, in any combination. Enriched or whole-grain meal or
flour, bran or germ does not have to be the main ingredient by weight for an item to count as a
grains/breads serving. Some foods (for example, enriched whole-grain or fortified ready-to-eat
breakfast cereals), that list sugar as the first ingredient may be counted as a grains/breads
serving. However, due to the high sugar content, it is recommended that these cereals be served
less often than other cereal choices.

NOTE: Items such as bran muffins and other products containing bran or germ are counted at
the same level as items made from enriched or whole-grain meal or flour.

Foods that qualify as grains/breads include, but are not limited to:

   Breads that are enriched or whole grain;
   Biscuits, bagels, rolls, tortillas, muffins or crackers made with enriched or whole-grain meal
    or flour;
   Cooked cereal grains such as rice, bulgur, oatmeal, corn grits, wheat or couscous that are
    enriched or whole grain;
   Ready-to-eat breakfast cereals that are enriched, whole grain or fortified;



Texas Department of Agriculture – May 2009                        Managing the Program -- 23
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   Cereals or bread products that are used as an ingredient in another menu item such as
    crispy rice treats, oatmeal cookies or breading on fish or poultry when they are enriched,
    whole grain or fortified;
   Cooked macaroni or noodle products that are made with enriched or whole grain flour;
   Toaster pastries, coffee cake, doughnuts, sweet rolls, cookies, cakes or formulated grain-fruit
    products that are made with enriched or whole grain meal or flour;


    NOTE: We recommend that you serve a sweet snack as part of a snack no more than twice a
    week.

   Pie crust that is made with enriched or whole-grain meal or flour; and
   Hard pretzels, hard bread sticks and chips that are made from enriched or whole-grain meal
    or flour.

    NOTE: Due to their high fat content, it is recommended that grain-based chips be served
    less often than more nutritious snack choices.

Use the following criteria to determine whether an item meets the grains/breads requirement:

1. The item must be whole grain or enriched or made from whole-grain or enriched meal or
   flour. Cereal must be whole grain, enriched or fortified.
2. The label must show that the product is enriched or whole-grain, fortified or made from
    enriched or whole-grain meal or flour, bran or germ, in any combination.

    NOTE: You should retain a copy of all food labels, including the product name,
    nutrition facts and the ingredient list. When conducting a review, we may disallow
    any meals for which you do not maintain proper documentation.

3. The item must be provided in quantities specified in the regulations. One-quarter (1/4) of a
   serving is the smallest amount that can be counted towards the minimum quantities of a
   grains/breads serving.
4. Consider these ingredients when selecting Grains/Breads:
   o Bran or germ;
   o Bulgur;
   o Corn meal or enriched corn meal;
   o Corn (whole grain, whole ground, whole germed or stone ground);

       NOTE: If the type of corn is not specified, you must request a product analysis to verify
       that it is creditable. A signed statement from a manufacturer indicating the type of corn
       is acceptable. The manufacturer's statement must be on company letterhead.




Managing the Program -- 24                                 Texas Department of Agriculture – May 2009
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    o   Enriched corn grits;
    o   Oats;
    o   Rice (enriched or whole grain); and
    o   Whole wheat.

The United States Food and Drug Administration (FDA) determined that “Degerminated and
bolted cornmeals should not be considered whole grain products because germ or bran has
been removed during processing. Because the rest of the meal (flour) standards allow removal
of some of the hull, these also should not be considered whole grain products.”

This clarification by FDA of the standards of identity for “corn meal” and “corn flour” indicated
that these products will no longer be considered as whole grains in the SFSP or any other USDA
Child Nutrition Programs.

Therefore to be credited toward meeting meal pattern requirements, corn must be labeled as:

1. “Whole corn” (or other “whole” corn designations, such as whole grain corn, whole ground
   corn, whole cornmeal, whole corn flour, etc.); or

2. “Enriched” corn (or other “enriched” corn designations, such as enriched yellow cornmeal,
   enriched corn flour, enriched corn grits, etc.).

NOTE: The following terms are not considered whole grains: barley, corn, degermed corn,
milled rice, rice, rye, wheat, wheat flour and yellow degermed corn.

There has been a recent increase in the service of cereal bars in the SFSP. Cereal bar products are
not included in the Food Buying Guide. Sponsors serving cereal bar products as part of a
reimbursable meal must obtain factual documentation from the manufacturer to show that they
have a creditable amount of grain/bread. This documentation must have information regarding
the product’s contribution toward meeting the meal pattern requirements. See Item 11980 in the
Resources Section for a sample product formulation statement.

4157           Product Labeled Food

Commercially prepared products, including those prepared by restaurants, fast food outlets,
etc., must:

   Have a child nutrition (CN) label, or
   Be accompanied by a product analysis, or manufacturer’s specifications.

Food manufacturers frequently will distribute brochures advertising their products to
organizations and SFAs participating in the SFSP. The manufacturer may claim its products are



Texas Department of Agriculture – May 2009                        Managing the Program -- 25
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approved for use in the SFSP and offer sample menus that include these products. In order for a
manufactured food product to be creditable in any of the child nutrition programs, it must have
a CN label. If the product does not have a CN label, you must have a product
formulary/analysis from the manufacturer.

4157.1 Child Nutrition (CN) Labels

Products containing the CN label have the following information printed on the principal
display panel of the label:

   Product name;
   Ingredients listed in descending order by weight;
   Inspection legend for the appropriate inspection;
   Establishment number (for meat, poultry and seafood items only);
   Manufacturer's or distributor's name and address; and
   CN label statement. The CN label statement must be an integral part of the product label
    and include the following information:
    o CN logo, the distinctive border around the CN statement;
    o A six-digit product identification number, which will appear in the upper right hand
        corner of the CN label statement;
    o A statement of the product's contribution toward meal pattern requirements for the
        child nutrition programs;
    o A statement specifying that the use of the CN logo and label statement is authorized by
        the U.S. Department of Agriculture (USDA); and
    o The month and year the label was approved by USDA.

If a product without a CN label is purchased and the product does not meet SFSP requirements,
you risk not being reimbursed for the meals containing the food product.

4157.2 Product Analysis

Food vendors can provide you with an analysis of products used to meet child nutrition (CN)
guidelines. If you purchase meat/meat alternate or juice products that do not have CN labels
you must request product analyses from your vendors. You must retain these product analyses
in your records.

If you purchase a product without a CN label and the product does not meet the meal pattern
requirements for the food components it contains, you risk not being reimbursed for the meals
containing the food product. The sponsor, not the food processor, is responsible for nutritional
requirements.




Managing the Program -- 26                                Texas Department of Agriculture – May 2009
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A product analysis from a food manufacturer must contain:

   A detailed explanation of what the product actually contains;
   The amount of each ingredient in the product by weight or measure, as appropriate;
   A certifying statement as to the contribution of the product to the meal pattern; and
   The signature of a high-ranking official of the manufacturer.

A sample product formulation statement for grains/breads has been developed to assist
sponsors when documenting the creditable amount of grain/bread in cereal bars and other
types of grain/bread products not found in the Food Buying Guide. See Item 11980 in Resources.

You are responsible for:

   Reviewing the manufacturer's product analysis before purchase to determine the
    reasonableness of information provided by the manufacturer;
   Ensuring that proper documentation is maintained on each commercially prepared product
    used to meet USDA meal pattern requirements;
   Ensuring the product received meets specifications and has the correct code number; and
   Providing site managers with serving sizes and crediting information.

4157.3         Manufacturer’s Specification

In order for a manufactured food product to be creditable in the SFSP, it must have a Child
Nutrition (CN) label. If the product does not have a CN label, the contractor must obtain either
a product analysis (Refer to Item 4157.2) or a manufacturer’s specification. The manufacturer’s
specification can be acquired from the manufacturer of the product to identify the food’s
contribution to the meal pattern requirements.

For menu items in which a manufacturer’s specification cannot be obtained, it is recommended
that additional food items be served that meet the meal pattern requirement to be counted
towards a creditable and reimbursable meal.

4158           Meal Service Schedule

Your sites must serve meals during the times of meal service submitted on Form H1507, Site
Information, and approved by TDA. You must obtain TDA approval for any changes in these
meal service times.

All sites except residential camps must ensure that:

   At least three hours elapse between meal services, including snacks;




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   If an afternoon snack is not provided, then four hours must elapse between lunch and
    supper;
   Supper may not begin later than 7 p.m. or end later than 8 p.m.; and
   Lunch and supper periods may not last longer than two hours, and breakfast and snack
    periods may not last longer than one hour.

You may request that TDA approve a waiver of time restrictions on meal service at sites you
sponsor. The primary goal of granting waivers of time restrictions is to provide meal scheduling
flexibility to assist sponsors in reaching children who would otherwise not have access to the
SFSP.

Sponsors must submit Form H1572, Request for Waiver of Time Restrictions for Meal Services, as
applicable. Waiver requests submitted by sponsors to TDA must include the alternate times and
periods of meal service that will replace any times and periods waived. A separate Form H1572
must be submitted for each site that proposes to use alternate time restrictions.

TDA will evaluate the waiver request and may waive any or all of the time restrictions on meal
service. Sponsors must monitor sites for which TDA approves waivers to ensure the sites
comply with any alternate time.

4159           Meal Service Styles

4159.1         Offer Versus Serve

An SFA, regardless of the location of the sites, may choose to use the Offer versus Serve option
and the NSLP meal pattern if the SFA or a specific school under its direction:

   Used the Offer versus Serve option during the current NSLP school year, and
   Serves the food cafeteria style on the school campus.

An SFA choosing to use Offer versus Serve must:

   Use the menu planning system it used during the school year (Traditional, Enhanced Food
    Based, Nutrient Standard or Assisted Nutrient Standard);
   Use Offer versus Serve for serving breakfasts, lunches or suppers only;
   Serve the children at minimum the amounts of food required by the NSLP; and
   Offer all required food items/components.

Offer versus Serve meals must be documented on NSLP production forms. If an SFA does not
elect to use Offer versus Serve, it may use either the NSLP meal plan without Offer versus
Serve, or the SFSP meal plan.




Managing the Program -- 28                                Texas Department of Agriculture – May 2009
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4160           Meal Counts, Second Servings and Field Trips

4161           Limit on Quantity of Reimbursable Meals

TDA may approve the following meals for all sites except camps or sites serving primarily
migrant children:

   One meal service per day - breakfast, lunch or snack; or
   Two meal services per day provided that one of the meals is lunch (for example, lunch and
    breakfast or lunch and a snack).

Sites serving primarily migrant children and camp sites can receive approval to serve three
meals or two meals and one snack a day. The sponsor may choose the meals served.

EXCEPTION: Sponsors may serve supper in place of lunch in certain situations. An example of
such a situation would be when an area is eligible for the Summer Food Service Program, but
the sites, meal preparation facilities or staff are not available for a lunch meal service. Except for
camps and migrant sites, in no case may a sponsor be approved to serve a supper and a lunch at
the same site. Sponsors must receive prior approval from TDA to serve supper in place of lunch.
Use Form H1573, Request for Waiver of Number and Type of Meal Served at an SFSP Site, when
requesting a waiver.

4162           Second Meals During One Meal Service

You must plan and prepare meals with the intent of serving no more than one of each approved
meal type per child per day.

You may request reimbursement for second meals only if the second meals were served due to
an unanticipated fluctuation in participation resulting from conditions beyond your control,
and:

   The second meals complied with USDA meal patterns;
   The second meals were served to eligible program participants; and
   Claims for second meals do not exceed 2 percent of the number of first meals of each meal
    type served to children in any claim period (usually one month).

Your meal production records, or other documentation, must show that the quantity of each
prepared component was adequate for each meal served (including any second meals) and
contained the minimum of each required component.




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4163           Field Trips and Off-Site Consumption of Food

4163.1         Field Trips

Sponsors may serve meals to children away from the approved site only when the children are
participating in a field trip. All field trips must be approved, in advance, by TDA. The sponsor's
request and approval from TDA may be verbal. However, verbal requests and TDA approval
must be followed up in writing. The food served on these field trips must be obtained from the
sponsors' approved source of meals. Meals served on field trips that were not approved in
advance will be disallowed.

To obtain advance approval for a field trip, the sponsor must provide TDA with:

   The place in which the meal will be served;
   How the meal will be maintained at the proper temperature;
   The menu that will be served (it must meet meal pattern requirements); and
   The source of the meal.

4163.2         Off-Site Consumption of Food

In accordance with applicable health standards (state or local), sponsors may allow a child to
consume an apple (or similar fruit or vegetable item) that is part of the Vegetable/Fruit
component of the meal:

   At an off-site location, or
   During the trip to an off-site location.

Examples of off-site foods include a raw piece of fruit or vegetable or packaged pieces of cut-up
fruit or vegetables, such as packaged carrot sticks.

Sponsors may implement this option at some or all sites. A food item taken off-site must come
from the child's own meal or from a "sharing table" left by a child who did not want it. Before
choosing the off-site option, sponsors must have an adequate number of staff who are trained
and prepared to handle the additional administrative and monitoring requirements associated
with off-site food consumption, and TDA must approve the sponsor's implementation of the
option. If TDA is unable to resolve questions regarding a sponsor's ability to properly supervise
and monitor off-site food consumption, TDA may prohibit the sponsor from implementing the
option at some or all sites.




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4200           Claims for Reimbursement

4210           Eligibility for Free or Reduced-Price Meals
Children from families whose incomes are at or below the levels shown on Form H1625-A,
Income Standards For Determining Nutrition Program Eligibility, or who receive temporary cash
assistance (TANF) or Supplemental Nutrition Assistance Program (SNAP) benefits are eligible
for free or reduced-price meals.

4211           Income Standards

Form H1625-A, Income Standards for Determining Nutrition Program Eligibility, contains the family
size and income standards for reduced-price meals. The following types of "income" must not
be included when determining a household's total income for eligibility for free and reduced-
price meals in the SFSP:

   Earned Income Tax Credit refunds
   Medicare prescription drug card subsidiary
   Family Subsistence Supplemental Allowance (FSSA)
   Agent Orange Compensation Exclusion Act
   Veteran's Educational Assistance Act of 1964 (GI Bill)
   Housing allowances for households living on military bases participating in the Military
    Housing Privatization Initiative. A list of bases participating in this initiative can be
    accessed at http://www.acq.osd.mil/housing.
   Income to a deployed military household member that is not made available to the
    household. You must include the deployed household members as part of the household
    count. If both military parents/guardians are deployed, count their children as part of the
    household with whom they are temporarily residing. Also include the deployed parents or
    guardians in the host household's count; however, only include the funds provided to the
    host household by the deployed military parents/guardians when totaling the host
    household's income.

4220           Enrollment of Children

4221           Confidentiality

You must protect the confidentiality of any information that has been provided on an
application for eligibility. You may only use the information to determine eligibility for
program benefits and to verify income. Do not release any information that contains a program
participant's name or other individual information. Summary information, such as the number
of program participants eligible for benefits, can be released.




Texas Department of Agriculture – May 2009                       Managing the Program -- 31
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4300           Program Administration

Sponsors must accept final administrative and financial responsibility for the operation of the
program at its sites, according to federal and state laws, regulations and policies, and according
to their approved application and management plan. Sponsors cannot deviate from the
approved management plan without prior approval from TDA.

4310           Management and Monitoring

The size and type of your operation determines many of your staffing needs. Depending on
your operation, certain positions may only require part-time employment, particularly during
planning and close out phases. The need for record-keeping personnel varies according to the
extent of support services provided to the program and the volume of records that must be
maintained. USDA recommends one monitor for every 15 to 20 sites in urban areas to meet
program monitoring requirements. The number of monitors necessary for rural sites may
increase depending upon the geographic area to be covered. Varying opening and closing dates
of individual site operations affect staffing needs. In every case, however, the sponsor must
provide adequate personnel for overall management and monitoring of the program.

For more efficient administration, sponsors must establish internal and external channels of
communication. Internally, discussing job descriptions and explaining the organizational
structure enables staff members to understand their own responsibilities and those of their co-
workers.

A communications network also must include:

   The Texas Department of Agriculture;
   The food service management company;
   The supervisors of the in-office staff members;
   Monitors; and
   Site personnel.

At a minimum, the sponsor and site personnel must maintain daily telephone contact to allow
them to promptly report changes in the number of meals ordered, any problems with meals and
requests for menu changes.

4311           Pre-Approval Visits

Your monitors must visit all sites before the sites are approved for program operations. You
must complete Form H1600, Site Selection Worksheet, for any sites that you intend to sponsor in
the SFSP. The worksheet outlines major areas to consider in evaluating sites and is useful as you
prepare site information sheets. You must note the date of the visit to each site and the name of



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the person who visited each site that you do not intend to sponsor in the SFSP. When you apply
to sponsor the program, you must certify that you have visited all the proposed sites. Monitors
should begin work several days before sites open. Under your direction, monitors may
complete the required pre-operational visits. These visits are not the same as those required site
visits during the first week of program operations.

SFAs are not required to complete pre-operational visits if the site participated as a NSLP site
during the school year.

4312           Staff Duties

This section contains a list of staff responsibilities. The size of the program determines whether
one person is needed to perform each position. Sponsors needing more specific staffing
guidance should consult their F & N FOO.

4312.1 Director's Duties

The director should be responsible for:

   Providing overall management;
   Supervising the program;
   Selecting sites;
   Submitting applications;
   Corresponding with TDA;
   Coordinating with other agencies;
   Conducting outreach efforts;
   Hiring, training and supervising staff;
   Arranging for food preparation or delivery;
   Ensuring that all monitoring requirements are met;
   Adjusting meal orders;
   Submitting claims for reimbursement;
   Ensuring Civil Rights compliance; and
   Handling all contracts, bidding and negotiations with FSMCs.

4312.2 Assistant Director's Duties (large program only)

The assistant director should be responsible for:

   Providing initial and ongoing training for sponsor and site personnel;
   Designing forms for record keeping purposes;
   Serving as liaison to vendor to adjust meal delivery;
   Checking claims for reimbursement;



Texas Department of Agriculture – May 2009                         Managing the Program -- 33
Summer Food Service Program Handbook
        Maintaining time and attendance records of staff; and
        Maintaining records on number of meals served.

4312.3 Area Supervisor's Duties (very large program only)

This person is in charge of several monitors and reports site problems to the director or assistant
director. The area supervisor should be responsible for:

   Scheduling monitors' visits;
   Checking monitors' reports;
   Preparing weekly summaries of monitoring efforts;
   Providing ongoing training for monitors;
   Visiting sites with monitors; and
   Determining need for and following through on corrective action.

4312.4 Bookkeeper's Duties

The bookkeeper should be responsible for:

   Maintaining records on the following:
    o Daily site reports, invoices and bills,
    o Food costs,
    o Labor costs,
    o Administrative costs,
    o Other costs, and
    o Program income;
   Preparing claims for reimbursement;
   Preparing payroll; and
   Purchasing office supplies.

4312.5         Monitor's Duties

A monitor visits sites on a regular basis and observes meal service operations. A monitor is
responsible for:

   Checking on-site operations to ensure that site personnel maintain records and that the
        program operates in agreement with the requirements;
   Visiting all sites within the first week of food service operations;
   Reviewing food service operations of all sites within the first four weeks of operation;
   Preparing reports of visits and reviews;
   Revisiting sites as necessary;
   Suggesting corrective actions for problems encountered;



Managing the Program -- 34                                 Texas Department of Agriculture – May 2009
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   Ensuring the site takes corrective actions; and
   Conducting on-site training as necessary.

4312.6         Site Supervisor's Duties

A site supervisor is in charge of the program at the site level. A site supervisor is responsible
for:

   Serving meals;
   Cleaning up after meals;
   Ensuring safe and sanitary conditions at the site;
   Receiving and accounting for delivered meals;
   Ensuring that children eat all meals on site;
   Ensuring that only eligible children receive meals;
   Planning and organizing daily site activities; and
   Making meal arrangements during bad weather.

4313           Public Release

Each program year, you must send a public release to the media in the area or areas where you
operate sites. The release notifies the public of your intent to operate the SFSP, dates and times
of operation, a description of the meal services that you will provide and a list of sites where
children can access the program. The release must also contain the required nondiscrimination
statements.

You are not required to pay for publication of the release, nor ensure that the media publish it.
You have fulfilled your responsibility by mailing the release to the media. However, you must
retain a copy of the public release with the dates and names of media to whom you submitted
the release.

Note: Announcements of subsequent changes to the meal service schedule or the locations of
sites may be accomplished through other means (for example, the distribution of flyers to
participants, the posting of notices at individual sites, etc.).

4314           State Government Privacy Policy

State government privacy policy legislation stipulates that individuals have the right to review
their personal information as maintained by a state agency. Individuals also have the right to
request the correction of inaccurate information. We are required to consider the request, but
reserve the right to determine whether the requested correction is appropriate.




Texas Department of Agriculture – May 2009                          Managing the Program -- 35
Summer Food Service Program Handbook
A privacy statement is included at the bottom of all TDA forms that request personal
information about a specific individual.

4320           Training

Training is one of your major administrative responsibilities. A smoothly operating program
requires you to provide training throughout the summer. A comprehensive training effort,
including weekly or biweekly meetings on program requirements, will help to ensure:

   Sponsor and site personnel are performing according to program regulations;
   Costs are allowable; and
   Accurate and adequate records are available to document the meals claimed.

Meetings with site and sponsor personnel allow an opportunity for personnel to:

   Ask questions about and discuss site operations, and
   Give sponsors a chance to provide specific training to personnel on any problem area.

4321           Contractor Training

You must complete mandatory training requirements before operating the SFSP each year. All
non-school sponsors, and school sponsors that did not operate the program during the previous
program year, must attend a training workshop that is conducted by TDA. Public schools that
sponsored the SFSP during the previous program year may complete a training workshop or
complete a self-paced online training course, with approval from their F & N Field Office
Monitor, and submit a certificate of completion to the appropriate F & N FOO.

TDA conducts SFSP training in various locations throughout the state and notifies all applicants
of the dates and locations of training and the procedure for registering for a particular
workshop. Self-paced training will be available online to public SFAs s that are eligible. Contact
your F & N FOO for more information.

TDA maintains a list of all applicants who attend the training sessions. However, SFAs that
complete the self-paced training must submit a Self-Completion Certificate with their
application for participation.

NOTE: If you fail to complete the entire training session, you will not be allowed to operate the
SFSP. However, you may enroll in the next regularly scheduled SFSP training session.

After your application has been approved, you must conduct training for both administrative
and site personnel. Most sponsors offer a separate training for each group that emphasizes the
group's specific duties. You should notify all personnel, in writing, of the date, time, location



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and importance of attending a training session. You should also remind personnel by
telephone shortly before the date of the session.

4322          Staff Training

You must train all personnel before they assume any SFSP duty in any site that you
sponsor. TDA suggests that, at a minimum, you provide detailed training to individuals
who serve as program monitors and function specific training to the remainder of your
staff (that is, training that directly relates to an individual's job function). Additionally,
you must train all personnel in civil rights before operating the SFSP.

You must record the date, topics and attendance for each training session for
administrative and site personnel. You can record the attendance by having all
personnel who attend sign an attendance form. You must keep this list of signatures
with your program records.

In the training session for administrative staff, you must explain the responsibilities and
duties of all personnel who help to administer the SFSP at the sponsor level. These
include the office staff (assistants, bookkeepers, secretaries and clerks), area supervisors
and, most importantly, monitors.

The specific training needs of administrative personnel vary, so you may cover specific
areas of the training in greater depth with different employees. However, all training
for administrative personnel should cover the following topics and use the training
materials listed in the following sample outline.




Texas Department of Agriculture – May 2009                     Managing the Program -- 37
Summer Food Service Program Handbook
                          Topics                                    Training Materials
Explain the program, emphasizing the following topics:        SFSP Handbook

a.   Purpose of the program
b.   Site eligibility
c.   Record-keeping requirements
d.   Organized site activity
e.   Meal requirements
f.   Nondiscrimination compliance
Describe program operations:                                  Menu schedule
                                                              Sample delivery receipts
a. How meals will be provided                                 Sample daily reporting for sites
b. Delivery schedules, if applicable
c. Record retention and forms
Outline the specific duties of monitors:                      Monitor review form
                                                              Monitor visit report
a.   Sites for which they are responsible                     Mileage log
b.   Monitoring schedule
c.   Reporting procedure
d.   Follow-up procedure
e.   Office procedure


No site may operate until personnel at the site have attended at least one of the site training
sessions. You should document the attendance and schedule additional sessions for personnel
who are absent. At least one person who has been trained must be present at each of your sites
during the time of the meal service. If a site supervisor who has attended a training session
resigns during the summer, you must ensure that the new site supervisor receives all necessary
training.

At the training session for site personnel, you should assemble a list of the signatures of the site
supervisors and assistants who are responsible for signing daily records. You should then keep
this list for use when reviewing the records returned by the sites.
In addition to site personnel, you should ensure that monitors attend the site training session.
Monitors act as liaisons between you and your sites. The site training session provides monitors
and site supervisors a chance to meet each other and understand their responsibilities in
relation to each other.

You should send a notice of the site training to local health inspectors so that they can attend
and become familiar with the food service operations. If any site receives meals through an
FSMC or SFA, you should invite representatives to attend the training to discuss menus and
delivery schedules.



Managing the Program -- 38                                  Texas Department of Agriculture – May 2009
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At a minimum, you must include the following topics in the training session for site personnel.

                             Topics                                    Training Materials
General explanation of the program:                                 SFSP Handbook

a.   Purpose of the program
b.   Site eligibility
c.   Necessity for accurate records
d.   Importance of organized activities at sites
Site operations:                                                    Menus
                                                                    Sponsor's name and
a. For sites served by food service management companies            telephone number
   or school food authorities:                                      Inventory forms
o      Meal pattern                                                 Production records
o      Menu requirements and types of meal service offered
o      Delivery schedules (exact times)
o      Adjustments in the delivery amount
o      Facilities available for storing meals
o      Who to contact about problems
o      Approved level of meal service
b.     For sites where sponsor prepares the meals:
o      Meal pattern requirement
o      Inventory
o      Menu adjustments
o      Meal preparation adjustments
Record Keeping:                                                     Sample forms

a. Daily record-keeping requirements
b. Delivery receipts
c. Special problems
   o Seconds
   o Leftovers
   o Spoiled food
d. Daily labor - actual time spent on food service and time
   and attendance records
   e. Collection of daily record forms




Texas Department of Agriculture – May 2009                         Managing the Program -- 39
Summer Food Service Program Handbook
Monitors:                                          Monitoring form

a. Duties and authority
b. Areas of assignment and introduction to
   site supervisors
Civil Rights                                       A Civil Rights Guide for Food and Nutrition
                                                    Division Programs - Self-Study Edition (May
                                                    2006 edition)
Miscellaneous:                                      Sponsor's policy

a. Problems caused by bad weather
b. Problems with unauthorized adults
   eating program meals
c. Problems with discipline
d. Review of equipment, facilities and
   materials available for organized
   recreational activities
e. Review of trash removal system
f. Corrective action
g. Nutrition education

Monitors should be present at both the site and administrative training meetings to ensure a
good understanding of program operations at both levels. Training is vital if monitors are to be
effective. You must provide monitors with thorough training to ensure they know program
requirements and duties and are able to provide the reviews that you will need. You must
ensure that the authority and responsibilities of monitors are clear to the monitoring staff, site
supervisors and office personnel. Monitors must ensure that the site serves only nutritious
meals and operates the program according to program guidelines.

Since the role of monitors is substantially important for proper program operations and full
reimbursement, you should conduct a separate training session for monitors that emphasizes
their specific functions.




Managing the Program -- 40                                  Texas Department of Agriculture – May 2009
                                                                Summer Food Service Program Handbook
This training should include:

                 Topics                               Training Materials
Outline the specific duties of monitors:     Mileage log
                                             Monitor review form
a. Sites for which they are responsible      Monitor visit record
b. Monitoring schedules                      A Civil Rights Guide
c. Reporting procedures                      Form H1601, Beneficiary Ethnicity Data
d.   Follow-up procedures
e.   Office procedures
f.   Local sanitation and health laws
g.   Considerations for personal safety
h.   Civil rights
i.   Reporting of beneficiary data



You must keep records that document:

      The dates of training of site and administrative personnel
      The attendance at each training session, and
      The topics covered at each training session.

If you have requested advance payments for operating costs, you will receive a letter entitled
Second Advance Questionnaire that you must complete and send to TDA certifying that you
have completed training for site and administrative personnel. Without this certification, TDA
will not issue a second advance payment for operating costs to you.

EXCEPTION: School food authority sponsors must complete this letter to receive a second
advance; however, they are not required to certify that staff has been trained.

4330            Monitor Reviews

Efficient and capable monitoring staff is essential for a successful program. Monitors
serve as a direct link between the sponsor headquarters and the actual food service
sites. Establishing a workable monitoring system helps to prevent problems from
occurring and makes it much easier to correct problems. The size of the monitoring staff
depends on the size of the sponsor's program.




Texas Department of Agriculture – May 2009                          Managing the Program -- 41
Summer Food Service Program Handbook
4331           Visits and Reviews

When monitors observe the SFSP operations at sites, they usually make either a visit or a
review. A site visit requires a monitor to ensure that the food service is operating smoothly and
that any apparent problems are immediately resolved. A site review is a more comprehensive
evaluation of a site's operation than a site visit, and requires the monitor to determine if the site
is meeting all the various program requirements. A monitor must observe some and preferably
all of the meal service operations, including delivering or preparing meals, serving meals,
eating meals and cleaning up after meals.

4332           Visits During the First Week

You must ensure that you meet minimum monitoring requirements. Your monitors must visit
all sites at least once during the first week of operation and promptly act to correct any
problems found at sites. If a site uses a vended program, the FSMC’s food production and
transportation methods must also be reviewed during the first week of food service.

EXCEPTION: SFSP sponsors that are SFAs are eligible for a waiver of the first-week visit
requirement for sites.

A waiver of the first-week visit requirement may be granted for a site, but the site must:

   Be school based;
   Be staffed by experienced school-year food service workers - for example, staff who work in
    the SFA's school food service during the regular school year;
   Have operated in the prior year; and
   Have had no significant SFSP operational problems in the prior year.

If you wish to request a waiver of the first-week visit requirement, you must submit Form
H1510, First-Week Site Visit Waiver Request, to your F & N FOO. If you request a waiver for more
sites than space allows on Form H1510, you may attach an additional sheet to your Form H1510
listing the name and address of each additional site for which a waiver is being requested.

TDA will evaluate the waiver request and determine on a site-by-site basis which sites, if any,
may be granted a waiver of the first-week visit requirement.

Sponsor monitors must also review all sites at least once during the first four weeks of program
operations. You are also required to monitor your sites throughout the summer at a level
sufficient to ensure that sites comply with program regulations.




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4333           Documenting a Visit

You must document on Form H1566, Monitor Site Visit, that you have met the site visit
requirements. Monitors must submit to you a record of visits to all sites. At a minimum, a
complete record contains:

   Name and address of the site visited;
   Date of the site visit;
   Times of the monitor's arrival and departure;
   A list of any problems that were noted during the visit, and corrective actions initiated to
    eliminate the problems;
   The site supervisor's signature; and
   The monitor's signature.

You may make additional site visits throughout the summer; however, a site visit may not be
substituted for a required monitor review. Monitors must submit Form H1557, Monitor Site
Review (Vended Programs), or Form H1558, Monitor Site Review (On-site Preparation), for each site
review during the first four weeks of program operations, and for site reviews throughout the
summer. On these forms, a monitor must record information regarding:

   Meal preparation and delivery schedules;
   The quality of site records and record keeping;
   The regular adjustment of meal orders; and
   Whether changes are made in menus.

4334           Processing Monitor Reviews

The records of visits and reviews help you assess the operation of your sites. The records are
only useful if your personnel carefully review the records and if follow-up monitoring is
scheduled to ensure that suggested corrective actions are taken to improve site operations.

You must, therefore, design a system for ensuring the timely submittal of reports by your
monitors and the review of those reports. A member of your staff should:

   Immediately review the reports and follow up on any problems;
   Consider any problems found by the reviewer;
   Call the site supervisor, if necessary;
   Schedule a follow-up review, if necessary;
   Make any comments or notes on the site's problems; and
   Sign and date the report.




Texas Department of Agriculture – May 2009                         Managing the Program -- 43
Summer Food Service Program Handbook
You must schedule monitor visits and reviews so that you can meet program
requirements. This is particularly true for sponsors with a large number of sites. A good
monitoring schedule and an efficient system for the review and follow up on the
monitor's reports are necessary for effective program operations.

4335           Quality of Monitors' Reviews

You or your staff should review monitor reports and note the quality of the reports.
Problems within a report's detail may indicate a monitor's lack of program knowledge
or responsibilities.

Monitors might need additional training if:

   They do not include comments in the remarks section of a report;
   The number of meals that are delivered or served and the number of children who are in
    attendance are always the same;
   They recommend a corrective action and fail to note the action taken to correct the
    problems; and
   They fail to recommend adjustments in meal orders if the number of meals exceeds
    attendance.

4340           Food Service Operations

You must operate a nonprofit food service, and you must use all SFSP funds to conduct or
improve the food service operation, primarily to benefit the enrolled children.

4341           On-Site Food Preparation and Safety Rules

Take the following precautions when preparing, serving or storing food.

   Maintain the proper temperature of foods (for example, maintain frozen food in a freezer at
    0 degrees Fahrenheit or lower).
   Ensure that thermometers are available and that staff uses them properly.
   Store meals and milk that are not being served in a refrigerator or cooler at a temperature of
    40 degrees Fahrenheit or below. Hot meals should be in a warming unit or insulated box at
    a holding temperature of 140 degrees Fahrenheit or higher.
   Never leave food out at room temperature for more than two hours.
   Promptly freeze or refrigerate leftovers.
   Use appropriate cleansing agents; thoroughly wash hands, utensils, cutting boards and
    work surfaces after contact with raw fish, meat and poultry. Sanitize utensils between use
    on raw foods and cooked foods.




Managing the Program -- 44                                 Texas Department of Agriculture – May 2009
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   Thoroughly rinse with water all fresh fruits and vegetables before cooking or serving. Do
    not use soap, as it can leave a residue.
   Prepare sandwiches and salads with a minimum amount of handling. Use disposable plastic
    gloves.
   Wipe up spilled food immediately; properly sanitize all food preparation and service areas.
   Empty garbage cans daily. Cans should be kept tightly and thoroughly covered and
    thoroughly cleaned. Use plastic or paper liners.
   Meet health standards set by state and local health departments.
   Throw the food away if you have any doubt about its freshness. Food spoilage cannot
    always be determined by sight, taste, odor and smell.

4342             Estimating Costs

Although estimating costs is a good management practice, it is not mandatory. Your sites may
use the following procedure to estimate the cost of each serving for their menus.

Step   List all foods, except seasonings, needed to produce a meal.
1:
Step   Determine the amounts of food needed.
2:
Step   Multiply the amount of food needed by the cost per unit (such as cost per pound or #10
3:     can).
Step   Divide the total cost of the meal by the number of meals.
4:
Step   Add 1½ cents to each meal cost for items such as seasonings, margarine used for spread
5:     and salad dressings.

The following example breaks down the price per meal for a lunch prepared for 25 children's
portions:

Step 1:            Step 2:                             Step 3:
Food Items         Food Amount Needed                  Total Cost
                                         Cost per      of Food
                                         Market Unit
ground beef        1.75 lb.              1.89/lb.      3.31
processed cheese .75 lb.                 2.69/lb.      2.02
eggs               3 each                1.09/doz.      .27
enriched flour     3 c (1.18 lb.)            .30/lb.    .35
tomato paste       1/4 #10 can           4.50/#10 can 1.13



Texas Department of Agriculture – May 2009                          Managing the Program -- 45
Summer Food Service Program Handbook
Step 1:              Step 2:                               Step 3:
Food Items           Food Amount Needed                    Total Cost
                                             Cost per      of Food
                                             Market Unit
fresh spinach        1 lb.                       .89/lb     .89
iceberg lettuce      1 lb.                       .50 lb.    .50
2 percent milk       1/2 gal.                2.30/gal.     2.87
-                    -                       -             TOTAL 11.34
Step 4: 11.34 / 25 = .4536
Step 5: Add 1½ cents per meal for seasonings
    .4536
+.0150
    .4686 or .47 per meal



4343              Recycled Food and Excess Meals

4343.1            Recycled Food

Certain types of food may be recycled for use in a subsequent meal service. Only foods that are
served cafeteria style or as part of a unitized meal can be recycled (for example, apples, oranges,
bananas and cartons of juice or milk). You must ensure the foods to be recycled are maintained
at a proper temperature. Food service practices must meet all state and local health department
standards. In addition, the sponsor must keep a record of recycled foods used on Form H1568,
Record of Recycled Food.

4343.2            Excess Meals (Leftovers)

The intent of the SFSP is to provide one meal per day per child. You may serve up to 2 percent
of total monthly meals as second meals. However, when there are leftovers, you may provide a
leftover table containing nonperishable foods and foods held at proper temperatures. Children
may eat these leftovers.

Leftover meals and certain items may be recycled. You may also donate leftover food to
homeless shelters, food pantries and the like, if allowed by local health authorities.

Complete meals not served to children cannot be claimed for reimbursement.




Managing the Program -- 46                                    Texas Department of Agriculture – May 2009
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4344          Storage

1. Check each delivery of food for possible shortages and damage before accepting the foods.
   o Refrigerated products must be examined to ensure that the temperature of the products
       is adequate and that they are in good condition. This is especially essential for frozen
       foods.
   o Canned foods must be examined to determine if there are any damaged, disfigured or
       discolored cases or cans, which might indicate spoilage or deterioration.
   o Foods subject to insect infestation must be thoroughly inspected.
   o Foods found to be out of condition must be segregated from other foods and handled in
       accordance with the procedures outlined by state and local health departments.
2. Keep a perpetual inventory record for all foods in stock.
3. Install and establish adequate safeguards to protect donated foods from infestation in your
   facility.
   o There must be no external openings in the structure of the building where foods are
       stored, which would allow rodent and insect infestation.
   o Extermination must be performed a minimum of once a month. Extermination may not
       be an adequate safeguard against infestation; therefore, fumigation should be instituted
       when extermination is inadequate. A record of extermination/fumigation must be kept.
4. Make freezer/cooler checks at least every other day, and maintain a log of checks. The log
   should contain at least the following information:
   o the exact date of the check;
   o the exact time of the check;
   o the recorded temperature; and
   o the signature of the person conducting the check.

       NOTE: You may create you own temperature log or use Form H1639, Temperature
       Record.

5. If you are not able to make these checks on the weekends, then they should be made late
   Friday afternoons and early Monday mornings.
6. Place secure locks on freezer/coolers, and on all doors of buildings where commodities are
   stored. This will help prevent theft and vandalism.
7. Store donated foods off the floor, on pallets or shelving, and away from the wall for proper
   ventilation.




Texas Department of Agriculture – May 2009                       Managing the Program -- 47
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8. Maintain the following temperatures:

        Items          Example        Recommended Temperatures
        Frozen foods   butter         0 degree Fahrenheit or below
        Cooler foods   cheese         32 to 35 degrees Fahrenheit
        Grain products flour, cornmeal 50 degrees Fahrenheit or below
        Dry storage    canned goods   70 degrees Fahrenheit or below


4344.1 Care of USDA Commodities

Any entity receiving USDA-donated commodities must take prudent and reasonable care of
these commodities. Required care includes but is not limited to the following.

   Order only the quantities that can be properly stored and used.

    o    Except in unusual circumstances, you must not have more commodities on hand than
         you can reasonably use in the program year.
    o    You should notify TDA if you have excessive commodities (more than can reasonably be
         used during the program year) so that they may be transferred if they cannot be used
         within a reasonable period of time.

   If any USDA-donated commodities remain in inventory at the end of the program year,
    contact your Commodity Distribution Technician to receive approval to use them in your
    NSLP, if applicable.

Detailed information on the storage of all food and sanitation in meal preparation is found in
the SFSP Nutrition Guidance for Sponsors that TDA makes available to sponsors at the
beginning of each summer.

4345            Small Resource Farms and Gleaning

USDA encourages sponsors to use small resource farmers and gleaning efforts because of their
potential for adding nutrition, value and variety to SFSP meals.

4345.1 Small Resource Farms

Typically, small resource farms are small to medium-size farming operations that grow and sell
fruits and/or vegetables to local markets (such as local grocery stores, fresh produce
distributors, farmers markets and roadside stands). The purchase of products from small
resource farms may benefit the buyer in terms of quality, freshness, variety and prices,
including the advantages of contracting directly with local farmers.



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A farmers market website available on the Internet is
http://www.ams.usda.gov/farmersmarkets/.

4345.2         Gleaning

USDA recommends three types of gleaning for the SFSP:

   Field Gleaning - Collecting crops from fields already mechanically harvested or from fields
    where the farmer has determined that a harvest is not economically profitable.
   Perishable Food Rescue or Salvage - The collection of perishable produce from wholesale
    and retail sources.
   Nonperishable Food Collection - The collection of processed foods with long shelf life.

A fourth gleaning method, called food rescue, is the collection of prepared foods from the food
service industry. This gleaning method is not recommended due to food safety concerns.
Additional information on gleaning and food recovery is available by calling USDA's telephone
hotline: 1-800-GLEAN IT, or 1-800-453-2648.

4350           Operation of Child Nutrition Programs During a Pandemic

The Child Nutrition Programs are designed to support institutional feeding operations. The
regulations require that programs will operate in a congregate setting, whether in schools or
child care facilities. During the outbreak of a pandemic disease, public health officials
anticipate the need for “social distancing” as a means of minimizing the spread of illness by
limiting person-to-person contact. Thus, when social distancing measures are in effect, schools
and other facilities may be closed, and operation of the Child Nutrition Programs will probably
not be possible.

School facilities and equipment normally used in the operation of the NSLP/SBP may be used
for other activities during a pandemic outbreak. In addition, in a Presidentially-declared
disaster, Program commodities and other foods would be available for distribution to
community groups or public agencies. However, although school facilities or commodities
could be used, their use would not be related to the NSLP/SBP.

Depending on the nature and scope of the outbreak, some program requirements may be
waived in areas adjacent to, but not directly affected by, a pandemic outbreak. Provisions
related to operational procedures, review requirements, or meal patterns have been waived,
either on a short-term or a longer-term basis, in previous disasters. The usefulness and
applicability of such waivers during a pandemic would, of course, be dependent on the scope of
the outbreak and the limitations of person-to-person contact in any given area.




Texas Department of Agriculture – May 2009                       Managing the Program -- 49
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Further information, policies and/or procedures will be provided if needed as they are
received.



4400           Nonprofit Food Service

Principles for determining applicable costs and factors affecting allowable costs for grant
programs are provided in 7 CFR, 3015. Additional guidelines may be found in the following
Office of Management and Budget Circulars:

   A-21, Cost Principles for Educational Institutions, relocated to 2 CFR, Part 220;
   A-87, Cost Principles for State, Local and Indian Tribal Governments, relocated to 2 CFR,
    Part 225;
   A-102, Uniform Administrative Requirements for Assistance to State and Local
    Governments;
   A-110, Uniform Administrative Requirements for Grants and Other Agreements With
    Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, relocated
    to 2 CFR, Part 215;
   A-122, Cost Principles for Non-Profit Organizations, relocated to 2 CFR, Part 230;
   A-133, Audits of States, Local Governments, and Non-Profit Organizations.

These circulars are also available from TDA. Nonprofit organizations may also find guidance in
the Standards of Accounting and Financial Reporting, available for purchase from the National
Health Council, 1740 Broadway, New York, NY 10019.

Allowable costs for the program are those that:

   Are necessary and reasonable for proper and efficient administration of the program;
   Are authorized or not prohibited under state or local laws and regulations or this handbook;
   Conform to any limitations or exclusions contained in this handbook and federal laws as to
    the types or amounts of cost items;
   Are consistent with the requirements of the Code of Federal Regulations (7 CFR, Section
    3015.190, Subpart T);
   Are not charged to or included as a cost in any other federally financed program in either
    the current or previous period; and
   Are net of any applicable credits.

Allowable costs include:

   Operating costs, and
   Administrative costs.



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Staff that performs both program and administrative tasks must complete a time study. Their
salaries should be allocated to program and administrative costs based on the time
study.

4410           Operating Costs

Operating costs are expenses incurred in operating a food service under the program and
include:

   Labor;
   Food;
   Facilities;
   Non-food supplies;
   Transportation of children;
   Transportation of food; and
   Use allowance.

Only direct operating costs are allowable.

NOTE: Operating costs may include the cost of producing eligible meals for children and meals
served to adults performing meal service labor, and meals served to other adults if the price
charged is included as program income. Operating costs may not include the cost of meal
served in excess of the approved meal service level or meals that are not allowed.

Organizational expenditures such as occupancy and telephone services that cannot be
specifically identified as SFSP administrative costs may be prorated as direct costs to
administration on a consistent and rational basis. You must use an appropriate base provided
for in your financial management system and approved by the TDA.

4411           Determining Food Costs

Food costs include expenses for obtaining USDA-donated commodities or other food consumed
by eligible children. These costs also include

   Charges for transporting food to the sites, and
   Costs for processing, distributing, storing and handling purchased or donated food.

Food costs are reduced for the following:

   Returns to food service management companies;
   Allowances on sponsor's invoices for unacceptable food;
   Cash discounts;



Texas Department of Agriculture – May 2009                      Managing the Program -- 51
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   Trade discounts;
   Rebates; and
   Value of the inventory on hand at the close of the program.

You should follow these procedures when determining food costs.

Step Procedure
1    Conduct a physical count of food on hand at all locations at the beginning of the program.
2    Establish the value of food items. Value is the net of trade discounts, returns and other
     credits to the purchase price.
3    Adjust inventory by any food lost because of fire, water damage, spoilage or reasons other
     than normal use. Actual losses that are covered by insurance or repaid by the responsible
     person are not allowable.
4    Determine the dollar value of the inventory. This is the purchase price for each item. Add
     costs for distribution, storage or handling if those costs are not included in the original
     purchase price.
5    Use the following formula to calculate the cost of food.

     Beginning inventory

     Plus   (+) The cost of food purchased

     Plus   (+) Other food costs

     Minus (-) Inventory adjustments

     Minus (-) Credits (returns, discounts, rebates)

     Minus (-) Ending inventory

     Equals (=) Total cost of food used



If you purchase unitized meals from an FMSC, the cost of food is based on itemized delivery
notices that:

   Include the number of meals in each delivery;
   Are verified and signed by the sponsor's representative; and
   Include itemized entries for any returns, discounts and rebates.




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4412           Commodities

Allowable costs for USDA-donated commodities include those for TDA assessment fees
and transporting, storing, distributing and handling donated commodities. You may
receive and pass on the commodities to SFAs preparing meals for the program on site if:

   You and the SFA reduce your claims for food costs by the value of the commodities
    received, and
   The value of commodities credited to you reflects all costs for obtaining food
    charged to you.

4413           Facilities Services Costs

Facilities services costs are costs of services other than labor necessary to operate the program,
including:

   Rental of food preparation facilities;
   Rental of food service equipment;
   Equipment repairs;
   Maintenance of rented facilities; and
   Utilities.

The following chart shows the types of costs in this category.

Rental      Includes        Buildings or parts of buildings (not land) used for the preparation of
of Food                      food
Preparation                 Costs to open, close and use school facilities if the sponsor is billed
Facilities                   for this by the SFA

-             Excludes      Rental of space only for dining unless the space is part of a food
                             preparation facility or school
                            Rental fees or use charges for space owned by the sponsor

-             Note          Rental costs must be comparable to the rental costs for comparable
                             facilities in the same area

Rental        Includes      Rental of equipment, other than land or buildings, for receiving,
of Food                      preparing, refrigerating, storing, cleaning, serving and transporting
Service                      food
Equipment




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-            Excludes      Cost for rental if the rental agreement includes a purchase option
                            for a later date
                           Rental fees or use charges for equipment owned by the sponsor

-            Note          Rental cost must be comparable to the rental cost for comparable
                            equipment in the same area

Equipment    Includes      Normal maintenance to equipment necessary for the program
Repairs
-            Excludes      Capital expenditures for rebuilding or appreciably prolonging the
                            life expectancy of the equipment

Maintenance Includes       Cost of keeping the facilities clean and in efficient operating
of Rental                   conditions only if cost is not included in rental fees
Facilities
-            Excludes      Permanent improvements or improvements where the benefits
                            derived exceed the duration of the program

Utilities    Includes      Cost of utilities to operate the facility or equipment if the cost is
                            related to the food service operation and if the cost is not included
                            in the rental fees



4414           Depreciation

Costs associated with the physical deterioration and the resulting loss in value of the
nonexpendable equipment used in the program are an allowable cost. Use allowance may not
be claimed for equipment that has fully depreciated, for donated equipment or for equipment
that is not being used in the SFSP. Use allowance is based on the acquisition cost of the
equipment. If actual cost records have not been retained, a reasonable estimate of the original
cost may be used.

TDA approves the use of any generally accepted method for computing the use allowance. The
method used, however, must be consistently applied for all similar equipment and for all
federally sponsored programs. The method used must result in equitable charges considering
the use of the equipment and the benefits to the program.

You must document use allowances in your records.




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4415           Non-Food Supplies

Non-food supplies are those purchased only for program needs such as paper napkins, straws
and dishwashing detergent, as well as for equipment costing less than $500.

        COST FORMULA




        Value of     Value of     Value of     Cost of
        beginning + supplies     - ending     = supplies
        inventory    purchased inventory


4416           Transportation of Program Participants

If you operate rural sites, you are entitled to the cost for transporting children to a central
feeding site within the rural area.

NOTE: Transportation costs for monitoring the sites are administrative costs, not operating
costs.

4417           Meals Served to Adults

SFAs may increase the size of components when serving non-program adults. The price
charged for adult meals must equal the cost of the meal, including the value of commodities
used to prepare the meal. Production records must reflect the adult meals prepared.

4420           Elderly Feeding Program Support

Sponsors that are SFAs and institutions of higher education, nonprofit organizations or both
may use facilities, equipment and personnel acquired or employed by the SFSP in support of a
nonprofit nutrition program for the elderly. Organizations that do so must meet the following
requirements.

1. SFSP reimbursement must be claimed only for meals served in the SFSP according to SFSP
   policies.
2. SFSP cost and revenue must be clearly distinguishable from the cost and revenue of other
   nutrition activities.
3. The use of USDA-donated commodities for either an SFSP or elderly feeding program must
   conform to USDA requirements for each program.




Texas Department of Agriculture – May 2009                           Managing the Program -- 55
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4. Food and other supplies purchased with SFSP funds may not be used in elderly nutrition
   programs.
5. SFSP integrity must be ensured and all SFSP requirements must be met before facilities,
   equipment and personnel acquired or employed with SFSP funds may be used in support of
   a nonprofit nutrition program for the elderly.

4430           Administrative Costs

Administrative costs are direct and indirect costs related to:

   Planning - assessment of community needs and available resources to prepare applications
    and negotiate agreements.
   Organizing - activities to assemble and coordinate resources.
   Managing - maintenance of program operations consistent with the written agreement.

Administrative costs incurred up to 60 days before program operations begin and 60 days after
program operations end are allowable if the costs are related to the program.

4440           Labor Costs

Labor includes costs for the following activities:

   Preparing, delivering and serving program meals, and clean up;
   Supervising children during the meal service; and
   Preparing program records on site.

Costs may include wages and fringe benefits, including Social Security, withholding tax and
retirement benefits paid or incurred during the reporting period.

NOTE: If you provide free meals to adults who perform labor in the program, the cost for the
meals is an allowable operating cost but the meals may not be included in the meal count on the
claim.

Labor costs are allowable only if the amounts are based on reasonable hourly rates for the
services provided and must be consistent with rates paid for similar work in the same area. You
must document labor costs with payroll records. Costs associated with personnel who work
only part-time in SFSP food service activities must be prorated based on the hours worked for
this activity. You must keep a daily log or other documentation to compute the amount of time
spent on SFSP food service activities.

NOTE: Donated labor (volunteers or labor funded through other government programs) is not
an allowable cost.



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4450             Direct Costs

Direct costs can be divided into one of three categories as provided in the following chart:

Category     Activities
Planning         Documenting that the area to be served is an area where poor economic
                  conditions exist
                 Assembling income information for enrolled children
                 Coordinating labor and transportation at sites before program begins
                 Preparing a food service management plan that includes a budget and a
                  staffing plan
                 Assembling, estimating and communicating eligibility information
                 Negotiating the agreement with TDA
Organizing       Hiring and training personnel
                 Procuring facilities and equipment to meet program needs
                 Negotiating contracts with FSMCs or SFAs
Managing         Salaries of administrative personnel, secretaries, accountants and others
                  needed to perform administrative activities
                 Rental of office space for administrative activities
                 Rental of office equipment used exclusively to support the program
                 Purchase of office supplies
                 Communication equipment, including a telephone at the site
                 Audits by independent auditors
                 Insurance and indemnity premiums
                 Use allowance on furniture and fixtures
                 Travel costs for monitoring


4460             Indirect Costs

Indirect costs are those incurred for SFSP food service as well as other programs that cannot be
attributed to only the SFSP food service account. Since these costs contribute to the cost of
producing meals, they are allowable as administrative costs if they meet the five conditions
listed below.

Indirect costs are allowable if:

   Direct costs were incurred for program operation;
   An agreement exists between the sponsor and TDA for the program;
   They are included on the approved budget either by reference to the approved rate or by
    estimation of the dollar values using the approved rate as a base; and




Texas Department of Agriculture – May 2009                        Managing the Program -- 57
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   They are based on either total salaries or total costs less any distorting costs (flow-through
    costs such as food cost and unallowable and non-benefiting costs).

4470            Unallowable Costs

Unallowable costs include:

   Bad debts because of uncollectible accounts and other claims and related costs including
    repayment of audit exceptions;
   Contributions to a contingency reserve or similar provisions for unforeseen events;
   Contributions and donations including USDA-donated commodities and other donated
    food, labor and supplies;
   Entertainment including amusements, social activity and related costs such as meals,
    beverages, lodging, rentals, transportation and gratuities;
   Fines or penalties resulting from violations of or failure to comply with federal, state or local
    laws and regulations;
   Salary and other expenses of the governor and state and local legislators;

    EXCEPTION: Travel costs are allowable if USDA allows TDA to consent before the cost is
    incurred.

   Costs resulting from non-reimbursement of costs under other programs;
   Value of in-kind donations;
   Capital expenditures for:
    o Acquisition of land or interest in land,
    o Acquisition or construction of buildings or facilities,
    o Alterations to existing buildings or facilities,
    o Nonexpendable equipment,
    o Rrepairs that increase the material value or the useful life of buildings, facilities or
       nonexpendable equipment; and
    o Other capital assets including vehicles;
   Fund-raising expenses incurred to raise capital or to obtain contributions such as financial
    campaigns, endowment drives and solicitation of gifts and bequests;
   Rental or lease of buildings, facilities or equipment if the rental or lease agreement includes
    a purchase option or if the rental extends beyond the termination date for the program
    operations;
   Rental or use charges for equipment or space owned by the sponsor;
   Costs for meals that exceed the approved level of meal service; and
   Costs for meals that exceed the allowable number of second meals service.




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4481           Credits

Credits are receipts or credit transactions that reduce the expense of operating and
administering the program. Examples of credits include:

   Purchase discounts;
   Rebates or allowances;
   Recovery or indemnity on losses;
   Sale of scrap;
   Receipt of incidental services; and
   Adjustments of overpayments or erroneous charges.

The portion of these transactions related to allowable costs is credited to the program as a cost
reduction.

4482           Program Income

Income accruing to the program, other than TDA reimbursements, include:

   Payments from food sales to adults (the charge should cover the cost of preparing the meal);
   Donations of cash to the sponsor that the donor specifies to be used for the food service
    operation or administration;
   Funds received from federal, state or local government for the sponsor's food service; and
   A la carte food items prepared with SFSP funds and sold to children.

4490           Filing Claims for Reimbursement

An organization’s claim is its actual participation report submitted for the purpose of receiving
reimbursement. FND reimburses claims depending on the availability of funds.

In order to process claims, TDA must have approved a Form H4508, Certificate of Authority, for
the contracting organization. Form 1590-W, Application for Participation (School Food Authority)
also contains the names of authorized representatives.

With certain exceptions (noted below), an organization must submit claims electronically via
the internet, through the Special Nutrition Automated Processing System (SNAPS). Upon
approval of an application and FND Agreement, the F & N FOO will set up a SNAPS account
for each authorized representative indicated on Form H4508, Certificate of Authority and Form
H1590-W, Application for Participation (School Food Authority). Each authorized representative
will receive an email with a user ID and temporary password. Once logged into the system, the
user will be prompted to change the password. A user manual is available on-line at




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http://www.squaremeals.org/fn/render/channel/itemswithoutHeader/0,1249,2348_15576_0_0,00.
html

The user guide gives instructions on how to:

   Access/log on to SNAPS;
   Change their initial password to one only they know;
   Submit a claim for reimbursement using SNAPS; and
   Obtain help if they are having trouble with their user ID or password, or with accessing
    SNAPS.

Once the organization’s claim has been successfully submitted, a confirmation screen will
appear. You can print the screen, which contains a confirmation number, to reference when
calling to confirm or ask questions about the claim. You will also receive an email confirmation
of the submission of your claim, which can be printed and filed with your program records.

When a sponsor calls to confirm the receipt of their claim, they must use the confirmation
number listed on the confirmation screen or email. FND Business Operations office hours are
8:00 a.m. to 5:00 p.m. Central Standard Time (CST).

If the SNAPS website is unavailable on the last day of the filing deadline (“the system is
down”), a sponsor may submit a paper claim via fax, mail, or by personal delivery to the TDA
Business Operations office in the Stephen F. Austin Building in Austin. However, the claim
must be postmarked or received by Claims Processing before close of business on the 60th day or
it will be received as a late claim. The sponsor must attach a cover letter explaining why they
could not submit their claim electronically via SNAPS.

If a sponsor waits until the 60th day to submit a claim electronically and then is unable to access
SNAPS due to any problem other than the SNAPS website being down, the sponsor must:

   Find an alternate site to access SNAPS and submit their claim before the deadline, or
   Submit their claim via the paper process as a late claim. See Item 4493, Late Claims, for
    information on the processing of late claims.

EXCEPTIONS: FND will accept a paper claim that is submitted via fax, mail or personal
delivery within 60 days of the end of the service month to which the claim pertains if:

   SNAPS was down or inaccessible at any time for the 24-hour period marking the 60th or last
    day to submit a claim electronically for that service month. FND must verify that the
    system was inaccessible at that time.
   The claim is accompanied by an Interagency Transfer Voucher (ITV) from a another Texas
    State agency.



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ADDITIONAL EXCEPTIONS: The following types of claims cannot be submitted through
SNAPS and must always be submitted as a paper claim via fax, mail or personal delivery:

   A claim or an amended claim that is submitted after the 60-day claim submittal deadline
    (late claim).
   An amended claim that results from an administrative review.*

*An amended claim that results from an administrative review must be submitted via fax, mail
or personal delivery directly to the sponsor’s F&N FOO.

Paper claims must be mailed to:

               Texas Department of Agriculture
               Food & Nutrition Division
               Attn: Business Operations
               P.O. Box 12847
               Austin, Texas 78711

Faxed claims must be faxed to (888) 232-2759. A sponsor must call and confirm receipt of faxed
claims. The number to call is (877) TEX-MEALS (TDD number 1-888-440-4997).

NOTE: Do not mail your claim if you fax it or submit it electronically. ALSO NOTE: It may
take up to 45 days to process valid paper (mailed, faxed, hand delivered) claims.

The purchase of a computer and Internet Service Provider (ISP) support is considered an
allowable operating cost. If a contractor uses the automation equipment and ISP for any
activity – personal or business -- other than the operation of their nonprofit food service, the
sponsor must prorate the cost. The only allowable cost is the portion used in the operation of
the sponsor’s nonprofit food service.

4491           Submittal Deadline

Ensure that claims for reimbursement are received by TDA within 60 days of the last day of the
claim month. If the 60th day is on a weekend or holiday, the claim must be received no later
than midnight on the following workday.

We recommend that you always have a back-up person designated to submit claims. Doing so
could lessen your chance of submitting a late claim that may be denied for payment.




Texas Department of Agriculture – May 2009                        Managing the Program -- 61
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4492           Combining Claim Months

If you operate all of your sites for less than 10 days in the final month of program operation,
those days must be added to the prior month's claim. If one or more sites participate for more
than 10 days in the final month of program operation, a separate claim must be submitted for
that month. Only the final claim month and its preceding claim month are combined if you
operate all of your sites for less than 10 days in the final claim month; no other claims must be
combined.

When combining a final month's claim with the prior month's claim, the claim is due not later
than 60 days after the last day of service in the final month of program operation.

Although you are required to submit a combined claim as stated above, you also have the
following options for combining claims.

Options                                          Examples
If you operate for 10 days or less in your       Your initial month of operation is June 2009. You
initial month of operation, you may combine      operate for seven days in June 2009 and for 20
your claim for the initial month of operation    days in July 2009. You may submit a combined
with the claim for the following month.          claim for June and July for a total of 27 days.
If you operate for 10 days in your final month   You operate for 15 days in July 2009. Your final
of operation, you may combine your claim for     month of operation is August 2009 and you
the final month of operation with the claim      operate for 10 days in August. You may submit a
for the preceding month.                         combined claim for July and August for a total of
                                                 25 days.
If you operate for three consecutive months,     You operate for eight days in May 2009, for 20
you may combine all three months if the first    days in June 2009, and for 10 days in July 2009.
month of operation and the last month of         You may submit a combined claim for May, June
operation each have 10 operating days or less.   and July for a total of 38 days.



When combining claims, the claim is due not later than 60 days after the last day of service in
the final month of program operation.

If you submit a combined claim electronically through the Special Nutrition Automated
Payment System (SNAPS), the claim month that you select on the SNAPS main menu screen
will be the month on the combined claim with the most service days.

Example: You submit a combined claim for June, July and August 2009. You operated six days
in June, 20 days in July and seven days in August. In the section of the SNAPS main menu




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where you must select the claim month, you will select 07/2009, since the month of your
combined claim with the most service days was July 2009.

4493             Late Claims

Claims postmarked or received by the FND later than 60 days after the last day of the claim
month (i.e. late claim) will be processed in the following manner:

Corrective Action Plan (CAP)

The submission of a late claim is a program noncompliance; therefore, the sponsor must submit
an approvable CAP that includes the:

     Reason for submitting a late claim;
     Actions to be taken to avoid repetition of the situation linked to the late claim submission;
     Actions to be taken to avoid any future late claim submission from the same or other causes;
      and
     Signature of an Authorized Representative designated to act on the organization’s behalf
      per Form H4508, Certificate of Authority and Form H1590-W, Application for Participation
      (School Food Authority).

Once the sponsor has submitted an approvable CAP, FND will determine if the sponsor is
eligible for the one-time exception payment provision.

NOTE: FND will accept as proof of submission a postmark affixed by the U.S. Postal Service or
equivalent documentation from a private postal service showing when the item was mailed.
We will not accept as proof of submission a postmark affixed by a postage meter.

4493.1.1 One-Time Exception


A one-time exception may only be used once within a 36-month time period for each USDA
Child Nutrition program that the contractor administers. A one-time exception granted to an
SFSP sponsor does not eliminate the sponsor from consideration for a one-time exception for
another child nutrition program claim.

    If the sponsor has …                  Then the sponsor may …
    Not used their one-time exception     Choose or request to use their one-time exception
    provision within the 36-month time    payment or receive no payment for the late claim. If
    period                                the sponsor submits several claim months at the same
                                          time, the sponsor may choose the claim month for
                                          which to apply the one-time exception.



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    Already used their one-time             Request a good cause exception.
    exception provision within the 36-
    month time period

4493.2           Good Cause

Requesting an Good Cause Exception

    If the sponsor …      Then …
    Requests a good       FND will consider each request on a case-by-case basis. The sponsor
    cause exception       must demonstrate that the noncompliance occurred due to
                          circumstances beyond the sponsor’s control (i.e. Good Cause).

                            If FND …                      Then …
                            Approves the sponsor’s        FND will forward the request for a
                            request for a good cause      good cause exception to USDA for
                            exception                     further approval.
                            Does not approve the          FND will deny payment of the late
                            sponsor’s request for a       claim.
                            good cause exception

    Does not request a    FND will deny payment of the late claim.
    good cause
    exception

Examples of good cause beyond a sponsor’s control may include, but are not limited, to:

     A catastrophic incident such as a tornado, flood, fire; or
     A life-threatening injury or illness to the person responsible for submitting the claim.

NOTE: Catastrophic incidences, life-threatening injuries or illnesses do not automatically
entitle the sponsor to be granted a good cause exception. The responsibility is upon the sponsor
to demonstrate how the catastrophic incident, life-threatening injury or illness caused a
situation that made submitting the claim within 60 days unreasonable/impossible.

Examples of reasons that would not be considered good cause beyond the control of the
sponsor include, but is not limited to:

     Absence of personnel on the 60th day, for reasons other than a life-threatening injury or
      illness;
     SNAPS system is down or inaccessible for electronic filing;
     A malfunction of power or equipment at the sponsor’s facility; or



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   Failure to get the claim in the mail in time to get it postmarked on the 60th day.

If USDA determines that a sponsor’s request for a good cause exception does not demonstrate
that the noncompliance occurred due to good cause, payment of the late claim will be denied.
Sponsors cannot appeal USDA’s denial of a claim. However, a sponsor may appeal FND’s
denial to submit the sponsor’s request for a good cause exception to USDA for consideration of
payment.

4494           Amended Claims

We will suspend your payments if you submit repeated amended claims. The suspension
remains in effect until you demonstrate that you have procedures in place to produce a final
claim on time each month.

If we process an amended claim for a month in the current program year, we will reconcile any
overpayment or underpayment against any outstanding claims for the current program year. If
the outstanding claims are not sufficient to reconcile the amended claim, we will process
payment to you for any underpayment and require you to submit any remaining overpayment.

If we process an amended claim for a month that is not in the current program year, we will
process payment to you for any underpayment and require you to submit the amount of any
overpayment.

4494.1         Upward Adjusted Amended Claims

The procedures provided in Item 4493, Late Claims, also apply to any upward adjusted
amended claim postmarked or received by TDA more than 60 days after the last day of the
amended claim month.

4495           Financial Management System

In addition to compliance with USDA program regulations and TDA policies in this section,
sponsors must establish a financial management system to ensure that the following standards
are met.

   Accounting records must be supported by source documentation. These documents include
    but are not limited to canceled checks, paid bills, payroll and contract and subcontract
    award documents.
   Records must show the source and application of funds and contain information
    about program reimbursement claimed and paid by TDA, authorization,
    obligations, unobligated balances, assets, liabilities, outlays and income.




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   Records must include accurate, current and complete reports concerning program
    participation and the financial results of the program.
   Audits must be completed at least every other year to determine, at a minimum, the fiscal
    integrity of financial transactions and reports and compliance with laws, regulations and
    TDA guidelines.
   A systematic method must be established to ensure resolution of audit and review findings
    and recommendations.
   Valid claims for reimbursement must be submitted to TDA in a timely manner.
   Valid amended claims must be postmarked or submitted to TDA within 60 days after the
    claim month.




4500          Program Documentation

We are only able to observe your daily operation of the program when conducting
administrative reviews and audits. Therefore, we must rely on the records that you retain to
determine your compliance with program requirements and verify the reimbursement to which
you are entitled.

If your records do not support your eligibility or claims for reimbursement, you must repay any
amount that you received improperly.

4510          Retention Period

You must retain all documents relating to your participation in the program, such as claims and
supporting documents that are specific to a particular program year, for at least three years
from the end of that program year. These documents include, but are not limited to, financial
and supporting documents and statistical records.

EXAMPLE: All documents specific to SFSP for program year 2006 must be retained until
December 31, 2009.

EXCEPTION: If audit findings, claims or litigation have not been resolved, all forms and
records must be retained beyond the required time period until all issues are resolved.

4520          Availability of Records

You, and each of your sites, must allow TDA, USDA, the Government Accounting Office and
representatives of other appropriate agencies to inspect sites and records and to audit, examine
and copy records during normal working hours.




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You must maintain separate records for each of your sites, and your SFSP records must be
maintained separately from records of other programs.

NOTE: If your contract is terminated or not renewed, you must retain all records and make
them available upon request.

4530           Types of Records

Sponsors must retain the following records:

Administration

   Form H1590-W, Application for Participation (School Food Authority), and Attachments A and
    B; copies of the approved Form H1506, Application for Participation; and Form H1507, Site
    Information.
   Forms H1531, Child Nutrition Program Application (for enrollment programs only).
   Documentation to support children's free meal eligibility based on Head Start, Early Head
    Start, Even Start or Workforce Investment Act (WIA) participation.
   Census tract or school data used to establish site eligibility.
   Tax-exempt status (for private, nonprofit sponsors only).
   Documentation of visits and reviews of sites.
   Documentation of training sessions for administrative and site personnel.
   Ethnic and racial SFSP participation data as required.
   Free or separate charge meal policy statement, as applicable.
   Enrollment forms for each child (for enrollment programs only).
   Daily attendance records of enrolled children (for enrollment programs only).
   Copies of claims/amended claims submitted for reimbursement.

Meals

   Daily number of meals served to all children by type of meal.
   Daily number of meals served to program adults by type of meal.
   Daily number of meals served to non-program adults by type of meal.
   Daily number of meals served to non-program children (for enrollment programs only).
   Daily number of meals served as second meals, if any.
   Daily menus (must include the quantities of ingredients used to prepare meals).

Program Expenditures

You must keep records documenting all program costs. Administrative and operating costs are
maintained separately. Records to support the cost of purchased food include:




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   Receiving reports prepared at sites or at the location where food is received from suppliers
    and signed by receiving personnel.
   Purchase invoices received from food suppliers.
   Records reflecting costs of processing, distributing, transporting, storing and handling
    purchased food if these costs are invoiced separately from the food purchase invoices.
   Records of returns, allowances, cash discounts taken and other credits if they are not
    reflected on purchase invoices.
   Canceled checks or other forms of receipts for payment.
   Inventory records that show the kinds of food items on hand at the end of a period, the
    quantity of each item, the dollar value assigned to each item and the total value of the
    inventory.
   Records of major inventory adjustments showing the same kinds of information as
    inventory records.

Sponsors that subcontract with school food authorities or food service management companies
to provide all meals, including snacks, must retain records of billings by site from the school or
company, less returns, allowances, discounts and rebates for the program meals delivered.

Cash Income

You must keep records of income to the program such as fees charged for meals to adults and
children and cash donations.

4531           Checklist of Required Records

There are a number of additional records sponsors must maintain in their files. These records
and the records discussed in this section are summarized in the following checklist of required
records.

1. Records that document eligibility for the SFSP:
______ Approved Agreement
______ Application
______ Site Information Sheet for each site
______ Evidence to show eligibility for each site based on serving needy children (school data,
        census data, Form H1531, Child Nutrition Program Application, Head Start
        documentation, Early Head Start documentation, Even Start documentation, Workforce
        Investment Act documentation)
______ Public release
______ Letter from the Internal Revenue Service showing tax-exempt status (for private
        sponsors)




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______ Pre-approval site forms
______ Management plan
______ Sponsor/site agreements
______ Certification of training
______ Letter of engagement of certified public accounting firm or independent accountant, or
        state or local government accountant and management letter (if applicable)


2. Records that support the number of meals served to children:
______ Daily count of meals prepared or received at sites
______ Daily count of meals served to children as firsts
______ Daily count of meals served to children as seconds
______ Daily count of meals served to program and non-program adults
______ Daily count of children in attendance at each site


3. Records that support food service costs:
______ Food inventories
______ Delivery receipts for vended meals
______ Payroll and time and attendance records for site personnel

4. Records that support administrative costs:
______ Payroll and time and attendance records for administrative personnel
______ Rental agreements for office equipment or space
______ Mileage records

5. Records to support income to the program:
______ Site records of cash collected
______ Receipts given for cash donations
______ Records of any other funds received for the food service program


6. Other required records:
______ Agreement with SFAs to furnish meals
______ Contract with registered vendor
______ Bid procedures used
______ Records and inventories of USDA-donated commodities



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______ Monitor's reports of site visits and reviews
______ Records of training conducted
______ Menu records
______ Quantity production records for each meal (for self-preparation sites)
______ Receipts, invoices and bills for all rented or purchased items and services
______ Bank statements and deposit slips
______ Accounting ledgers
______ Sanitation and health reports
______ Certification and independent price determination
______ Racial/ethnic breakdowns of beneficiaries
______ Copies of claims submitted for reimbursement

4540          Required Forms

TDA forms that are reproduced through electronic media, including but not limited to copiers,
fax, scanning equipment or software applications, are considered not to be alternate forms,
provided that the data elements contained in a form are not altered as a result of the
reproduction process. Such forms would not be subject to prior approval by FND before
implementation by the sponsor. However, the sponsor is held accountable for ensuring that all
data elements in an electronically reproduced version of a form are an exact replica of the
corresponding TDA form's content and format.




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