In response to the alarming rise in the prevalence of obesity and overweight children and adolescents in this country, the United States Department of Agriculture has reissued instructions to state agencies and school food authorities (school districts) to clarify the competitive food requirement for federal child nutrition programs. Schools are charged by the Healthy People 2010 Objective 19.15 to improve the quality of students' dietary intake and to focus on creating a healthy school nutrition environment as an effort to counteract the student obesity epidemic.
Per the January 30, 2001 USDA Regional Office Memo 2001 SP-06, the Child Nutrition Unit, Arkansas Department of Education is to aggressively enforce prohibitions on Foods of Minimal Nutritional Value (FMNV). USDA has issued clarifications in the following three elements of FMNV compliance that state agencies must assess in order to determine if the SFA/District is complying with the requirements for FMNV.
Beginning School Year 2001-2002 the following elements will be assessed when Coordinated Review (CRE) Visits and/or during other visits made to school districts:
COMPLIANCE ELEMENT I. FOOD SERVICE AREA/MEAL PERIOD
The CRE monitor will assess whether the SFA/District is properly designating the food service area for purposes of restricting the service of FMNV. The term "food service area" refers to any area on school premises where program meals are BOTH SERVED and EATEN as well as any areas in which program meals are EITHER SERVED OR EATEN. EATING AREAS that are completely separate from the serving lines are clearly part of the food service area. Furthermore, schools may NOT design their food service area in such a way as to encourage or facilitate the choice or purchase of FMNV as a ready substitute for, or addition to, program meals.
Similarly, DURING MEAL PERIODS includes both the TIME OF SERVING and the TIME THE STUDENT SPENDS EATING THE MEAL.
COMPLIANCE ELEMENT II. ACCESS TO FOODS OF MINIMAL
NUTRITIONAL VALUE
This is a two-fold assessment. First, it is not permissible for a school to serve FMNV during a meal service period (s) in the area (s) where reimbursable meals are served and/or eaten. For example, if students are permitted to choose a FMNV (e.g. a carbonated beverage) with a reimbursable meal, that FMNV is, in effect being served in competition with the reimbursable meal. Therefore, THIS PRACTICE IS PROHIBITED SINCE IT INTRODUCES ACCESS TO FMNV IN THE FOOD SERVICE AREA DURING THE MEAL SERVICE PERIOD.
The state agency is required by regulations to assure that the meal is priced as a unit. As part of the agreements between the state agency and the SFA/District (See Sections 210.9(b)(6) and 220.7 (e)(3), the SFA/District agrees to price the reimbursable lunch or breakfast as a unit. Any FMNV provided with a reimbursable meal "at no additional charge" is in fact being "sold" as part of the unit if the FMNV is only available when a reimbursable meal is taken. As such, this violates the prohibition against selling FMNV in the food service area during meal periods. Further, such arrangements violate the unit price provision in the agreement.
COMPLIANCE ELEMENT III. USE OF FUNDS IN THE NONPROFIT
SCHOOL FOOD SERVICE ACCOUNT (SFSA)
The third element the state agency must assess is how the funds in the school food service account (SFSA) are being used. Costs charged to the nonprofit SFSA must be both necessary and reasonable. The costs of FMNV purchased for service in the food service area during meal periods are neither necessary nor reasonable, so they are not allowable costs. In some circumstances, the cost of minor quantities of FMNV used to decorate or enhance food or menu item is allowable. Any other costs of FMNV for service in the food service area during meal periods must be disallowed.
If SFSA funds are used to purchase FMNV for sale outside a meal period (s) or outside a food service area (s) during meal periods, such purchases must be self-sustaining. This means that funds must be deposited in the SFSA in an amount sufficient to cover all direct and indirect costs relating to the purchase and service of FMNV with SFSA funds. Records documenting the recovery of these costs must be maintained and available for review.
PUNATIVE ACTIONS FOR VIOLATIONS:
If a SFA/District has improperly used its school food service account for the purchase and service of FMNV, the State agency (CNU,ADE) must require both corrective action and restoration to the SFSA of any school food service account funds used improperly to purchase and serve FMNV.
The Child Nutrition Unit, ADE, may exercise fiscal action by the authority provided in Sections 210.11 and 220.12 and disallow all meals served by a school on any day that a violation of the regulations is observed. USDA has charged CNU, ADE to be diligent in monitoring compliance with corrective action plans.
Should you need additional information please contact your area specialist, Barbara Smith or Wanda Shockey at 501-324-9502.