Food Distribution Program
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1 Food Distribution Program Whole Child Whole School Whole Community 1 Topics Illinois Commodity System (ICS) Spending Options Forecasting Annual Order Period Diversion to Processor Resources Whole Child Whole School Whole Community 2 1
2 Illinois Commodity System (ICS) Whole Child Whole School Whole Community 3 Spending Options Three options USDA Foods DOD Fresh Processing Whole Child Whole School Whole Community 4 2
3 Spending Options 1. USDA Foods / commodities / brown box Order once per year via ISBE s Illinois Commodity System (ICS) order updates can be made throughout the year Delivered monthly, August through April USDA & ISBE determine which items are delivered in which months anticipated delivery chart Schools pay the delivery cost Whole Child Whole School Whole Community 5 Spending Options 2. DOD Fresh, fruits and vegetables Allocate a portion of PAL once per year Order weekly via DOD s FFAVORS system Delivered weekly, August through end of school year $150 minimum order per delivery No delivery cost to the school Whole Child Whole School Whole Community 6 3
4 Spending Options 3. Diversion to Processor Allocate a portion of PAL once per year Order from your contracted distributor Delivered based on distributor contract terms Delivery cost based on distributor contract terms Receive value of USDA Foods Whole Child Whole School Whole Community 7 Funding Planned Assistance Level (PAL) # of Recipient Agencies $1- $5, $5,001 - $10, $10,001 - $30, $30,001 - $100, $100,000 - $2,000, $14,000,000 1 Total PAL: $62,000,000 TOTAL RAs: 1,053 Whole Child Whole School Whole Community 8 4
5 Forecasting A tool for making better decisions A prediction or estimate Look at past inventory usage to predict future needs, with some adjustments for reality Forecasting saves money Potential for better pricing Helps processors plan production Helps distributors plan warehouse space Helps ensure timely delivery of product Reduces waste Whole Child Whole School Whole Community 9 Forecasting Menus are critical Production records historical participation Include new items Remove items you will no longer serve Velocity reports Whole Child Whole School Whole Community 10 5
6 Forecasting Carefully analyze the best way to use Food Distribution Program entitlement dollars Entitlement is only an asset when it is used Entitlement is estimated to save 20% on your food costs Whole Child Whole School Whole Community 11 Original plan Changes Communication is key Brokers Processors Distributors Forecasting Whole Child Whole School Whole Community 12 6
7 Commodity Calculator 1. ISBE Processing Calculator 12 Step Process Approved End Products Report 2. Processor commodity calculators Spreadsheet or online Processor specific information pre filled Whole Child Whole School Whole Community 13 Approved End Products Report Whole Child Whole School Whole Community 14 7
8 Approved End Products Report Processor Whole Child Whole School Whole Community 15 ISBE Processing Calculator Whole Child Whole School Whole Community 16 8
9 Example Processor Commodity Calculator Item # Description Average Finished Case Weight CN Serving Size (oz.) M/MA per Serving Estimated Eq. Number of Grain Servings Desired Approx. FULL Servings Per Case Number of = X Finished Cases USDA Foods per = Pounds Needed Case Processor USDA Foods material 5705 Cheddar Cheese Sauce , = 100 X = Beef Patties , = 200 X = Turkey Patties , = 300 X 8.10 = Whole Child Whole School Whole Community 17 Annual Order Period School year 2020 order period Opens January 2, 2019 Closes February 25, 2019 Whole Child Whole School Whole Community 18 9
10 Annual Order Period Diversion to processors closed Feb 11 Feb 15 Input diversions prior to Feb 11 Adjust diversions between Feb 16 and Feb 25 No diversions after Feb 25 Whole Child Whole School Whole Community 19 Value of USDA Foods Value Pass Through Systems Direct discount Refund or rebate Indirect discount (net off invoice) Fee for service Whole Child Whole School Whole Community 20 10
11 3 types of fee for service Value of USDA Foods 1. Direct shipment and invoicing to the school 2. Shipment to a distributor with a breakout of which schools own what product 3. School has an authorized agent bill them for the total case price (modified fee for service) Whole Child Whole School Whole Community 21 Track your deliveries and balances year-round USDA Foods / commodity / brown box deliveries and balances ICS DOD deliveries and balances FFAVORS Processor deliveries and balances K12 Processor Link Distributor site Tracking Whole Child Whole School Whole Community 22 11
12 Processor Inventory Enforcing the sweep policy to reduce inventory at processors Sweeping unused carryover pounds by October 31 Monitoring usage throughout the year and limiting new diversions Whole Child Whole School Whole Community 23 Illinois Commodity System (ICS) Whole Child Whole School Whole Community 24 12
13 Updated Resources School Nutrition Programs Handbook ICS Instructions Processing Calculator FFAVORS Ordering Manual Programs-Food-Distribution.aspx Whole Child Whole School Whole Community 25 Contact Information Sophie Michel-Newman Angie Hancock Paula Williams Illinois State Board of Education Nutrition Division 100 North First Street Springfield, Illinois Whole Child Whole School Whole Community 26 13
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