ADE Director's Communication Memo Form


Memo Number : FIN-10-002

Date Created : 07/27/2009

Attention:

Superintendents
Co-op Directors
other: Child Nutrition Directors

Type of Memo: Regulatory
Response Required: Yes
   
Section:   Fiscal and Administrative Services - William J. Goff, Assistant Commissioner
Subject:
2009-10 Child Nutrition Reimbursement Rates

Regulatory Authority:
7 C.F.R.§§ 210.4, 210.6, 220.4 and 220.6

Contact Person:
Suzanne Davidson

Phone Number:
501-324-9502

E-mail:
suzanne.davidson@arkansas.gov

REIMBURSEMENT RATES:

Reimbursement rates for the National School Lunch, Breakfast and Afterschool Snacks that became effective July 1, 2009, are as follows:

REGULAR REIMBURSEMENT RATES

Regular Lunches
Free $2.68
Reduced Price $2.28
Paid $.25

Regular Breakfasts
Free $1.46
Reduced Price $1.16
Paid $.26

Afterschool Snacks
Free $.74
Reduced Price $.37
Paid $.06

SPECIAL REIMBURSEMENT RATES:

SAFETY NET:
School districts that served 60% or more of the total lunches to students eligible for free or reduced price meals in the second preceding school year (2007-2008) are designated “Safety Net” districts and will receive two cents additional reimbursement for each lunch served. See attached list of districts eligible for these rates.

SAFETY NET LUNCHES (See attached list of Safety NET Districts, for lunches only)
Free $2.70
Reduced Price $2.30
Paid $.27

SEVERE NEED BREAKFAST:
Severe Need Breakfast rates are approved on a school-by-school basis after application is made by the school district. Any school in the district that served 40% or more lunches during the 2007-2008 school year as free or reduced price may be eligible to receive an additional $.28 reimbursement on all free and reduced price breakfasts served during the 2009-2010 school year.

The application process for severe need rates has been completed for the 2009-2010 school year. Please be sure that the person preparing the claim form for the district is provided the severe need approval letter.

SEVERE NEED BREAKFAST (Must have CNU, ADE approval letter with list of schools in the district approved for Severe Need reimbursement for the 2009-2010 school year.)
Free $1.74
Reduced Price $1.44
Paid $.26

THE REDUCED MEAL STUDENT PAYMENT for a reduced price LUNCH is $.40, BREAKFAST is $.30, and AFTERSCHOOL SNACK is $.15. THESE RATES CANNOT BE INCREASED.

COMMODITY VALUE: The commodity value per lunch will be 19½ cents for the 2009-2010 school year. This is a decrease of 1¼ cents per lunch from the school year 2009 (July 1, 2008, through June 30, 2009,) rate.

ADULT MEAL PRICES:
School districts need to adjust adult meal prices charged for participation in the school lunch or breakfast program by the amount of increased free reimbursement received for this year. This will ensure that adults pay the FULL COST of the student meal. The formula used for Adult LUNCH Prices will include the current year Free Reimbursement rate ($ 2.68 or $ 2.70) plus the per meal Commodity rate for school lunch (19.5 cents) which equals $ 2.875 or $2.895.

The Adult Meal Price for School Breakfast should be at least the amount of the Free Reimbursement rate for breakfast (either $1.46 [regular] or $1.74 [severe need school] depending on the rate received at the school.)

School districts may charge more than the formula rate for adult meals, but not less than the formula amounts. If a school district maintains a cost allocation system to determine the separate actual meal costs for school breakfast and lunch, then the actual cost data adjusted for inflation may be used to set Adult Prices.

CURRENT FINANCIAL FORMS:
Attached are the following report forms required to meet federal regulations for meal counting and claiming for all REGULAR and PROVISION 2 programs. Please make additional copies as needed.

CLAIM FOR REIMBURSEMENT – The REVISED Claim Form has the NEW reimbursement rates for 2009-2010. PLEASE DISCARD CLAIM FORMS FROM THE PREVIOUS SCHOOL YEAR. Instructions for completing the Claim for Reimbursement and the Claim Form using Excel software may also be found on the Child Nutrition website http://cnn.k12.ar.us under the Forms button. Print these forms ONLY on legal size paper.

DAILY RECORD FORM: (Edit Check 1) – This is the form to be maintained for each school as listed on CN Program Schedule A of the Agreement. Participation figures, by school, are required for severe need breakfast reimbursement. This form may be modified if a local district needs additional information.

CASH MANAGEMENT WORKSHEET – All schools MUST complete this form or a district designed form that contains the information included on this worksheet. Failure to collect this Financial information is an audit exception.

EDIT CHECK 2 WORKSHEET – This is the current form recommended for edit checks REQUIRED BY REGULATION. It may be modified to meet local needs; however, the comparisons required on this form must be a part of any form used.

ON-SITE REVIEW FORM – Regulations require that each district (with more than one serving site) conduct on-site reviews of each serving site by February 1 of each year. This form may be modified to meet local needs; however, the comparisons required on this form must be a part of any form used.

Attachments:

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