Financial Management Part IIStaffing Formula and Paid Lunch Equity

New Administrator Orientation 2014

Presented by:

Stephanie N. Robinson

Director, School Support Division

Staffing FormulaMeals per Labor Hour (MPLH)

• MPLH is used by food service administrators as a productivity index to monitor the efficiency of their operation and to determine appropriate staffing. – An acceptable industry standard is 14 to 18

meals per labor hour.

Calculating MPLH

• Step 1: Determine the number of meals served daily, or Average Daily Participation (ADP)

• Step 2: Convert all meals to total meal equivalents

• Step 3: Calculate total daily paid labor hours – all food service employees, including the

manager, kitchen staff and cashier• Step 4: Divide the total meal equivalents by the

total daily paid labor hours

Step 1: Calculating Average Daily Participation (ADP)

• Average Daily Participation - average number of meals served daily

EQUALS (=)Number of Meals Served During a Month

DIVIDED BY Number of Operating Days in the Month

ADP Example

Example: In September, OCN High School served 3000 free student lunches, 2000 reduced price student lunches, 850 paid student lunches, and 200 paid adult lunches during a month. The number of operating days was 20.

6050/20= 302.5

ADP Example cont.

Example: The school also served 800 free student breakfasts, 600 reduced student breakfasts, 300 paid student breakfasts, and 150 adult breakfasts during the month.

1850/20= 92.5

This school had an Average Daily Participation (ADP) of 303 lunches and 92.5 breakfast meals.

What is a Meal Equivalent? The unit of measurement used to gauge the effectiveness and efficiency of a school nutrition program. The student reimbursable lunch is the standard unit of measurement most often used. Converting operational data for all food sales to meal equivalents allows the SFSA to evaluate productivity.

Step 2: Convert all meals to total meal equivalents

Step 2: Meal Equivalents • Lunch-all student reimbursable lunches and full-paid

adult lunches are counted as one meal equivalent for each lunch served– Lunch ADP x 1

• Breakfast-three breakfasts are the equivalent of two lunches– Breakfast ADP x Conversion Factor (2÷3 = .66)

• After School Snacks- 3 snacks are equal to one meal; there is a 3-to-1 ratio of snacks to lunch– After School Snack ADP ÷ 3

• Monthly Total for Extra Food Sales• Divided by the Number of Operating Days in the Month

• Divided by the Rate (equals the Free Reimbursement Rate plus the Commodity Rate)

–Over 60%, 3.06 + .2475 = 3.31–Under 60%, 3.04 + .2475 = 3.29

Meal Equivalents cont.

Average Daily Extra Food Sales-based on the annual federal reimbursement rate for students eligible for free lunch plus commodity meal rate.

RATES

• Contract Meals (ex. meals provided to local Head Start) - 1-to-1 Ratio

– Lunch ADP x 1– Breakfast ADP x Conversion Factor (2÷3 = .66)

Meal Equivalents cont.

• Step 4: Divide the total meal equivalents by the total daily paid labor hours

Final Step

EXAMPLE A: OCN High School/ September 2014OCN High School, School Level Data - 19 Serving DaysEligible Students 305

• 109 Free, 17 Reduced, 179 Paid

Student Lunches 5099

Student Breakfasts 3033

Adult Lunches 156

Adult Breakfasts 82

After School Snacks 586In-Kind Lunches 110In-Kind Breakfasts 94Extra Food Sales $4,356.25

OCN High School, School Level Data - 19 Serving DaysEligible Students 305

• 109 Free, 17 Reduced, 179 Paid

Student Lunches 5099

Student Breakfasts 3033

Adult Lunches 156

Adult Breakfasts 82

After School Snacks 586In-Kind Lunches 110In-Kind Breakfasts 94Extra Food Sales $4,356.25

Compute Lunch ADP and MEQ

5099 Student Lunches +156 Adult Lunches

= 5255 (Do not include in-kind)

5255÷19 days = 276.58276.58 x 1 = 276.58 Meal Equivalents

Compute Breakfast ADP and MEQ

3033 Student Breakfasts +82 Adult Breakfasts

= 3115 (Do not include in-kind)

3115÷19 days = 163.95163.95 x .66 = 108.21 Meal Equivalents

Compute ADP and MEQ for After School Snacks

• Snacks were served M, W, and F for a total of 12 days in the month

586 After School Snacks ÷ 19 days= 30.84

30.84 ÷ 3 = 10.28 Meal Equivalents

Snacks meals are divided by the number of total serving days for the month, not the number of

days snacks were served.

Compute Contract Meals

• 1756 Contract Meals (lunches) were provided to a local HeadStart for the month

– 1756/19 = 92.42 x 1 = 92.42 Meal Equivalents

Compute Extra Food Sales

$4,356.25 ÷ 19 days = $229.28 per day

$229.28 ÷ $3.31*=69.27 Meal Equivalent

– Over 60%, 3.06 + .2475 = 3.31*Commodity Meal Rate

Total Meal Equivalents EXAMPLE A: OCN High School

MEQ

Lunch

Breakfast

After School Snack

Contract Meals (Head Start)

Extra Food Sales

556.76

276.58

108.21

10.28

92.42

69.27

TOTAL MEQ

Compute Labor Hours EXAMPLE A: OCN High School

Employee Clock-In Clock-Out Lunch Total Hours Worked

Sarah 7:00 2:30 .5 7

Helen 7:30 2:30 .5 6.5

Ellie 9:30 1:30 No lunch 4

Sonny 7:00 1:00 .5 5.5

Dianne 7:00 2:00 .5 6.5

Barbara (Manager)

6:30 3:00 .5 8

TOTAL DAILY PAID LABOR HOURS = 37.5

Meals Per Labor Hour

Total Meal Equivalents 556.76

÷ Total Daily Paid Labor Hours 37.5

=

Meals per Labor Hour (MpLH)

14.85

Target MpLH

• To calculate labor required for a target MpLH, divide the total Meal Equivalents by the desired number MpLH.– For 17 MpLH

• 559.59/17 = 33.92 Labor Hours – Number of hours to be eliminated

• 37.5 - 33.92 = 3.58 Labor Hours

EXAMPLE B: OCN Middle School/ September 2014OCN High School, School Level Data - 19 Serving DaysEligible Students 305

• 109 Free, 17 Reduced, 179 Paid

Student Lunches 5099

Student Breakfasts 3033

Adult Lunches 156

Adult Breakfasts 82

After School Snacks 586In-Kind Lunches 110In-Kind Breakfasts 94Extra Food Sales $4,356.25

OCN Elementary School, School Level Data - 19 Serving Days

Student Lunches 5800Student Breakfasts 1033Adult Lunches 160Adult Breakfasts 75After School Snacks 0In-Kind Lunches 61In-Kind Breakfasts 61Extra Food Sales Total Daily Paid Labor Hours=25

$1000.25

OCN High Participation

• Breakfast – 3033 meals/19 days = 159.6/305

Students • Participation 52.3 %

• Lunch – 5099 meals/19days = 268.4/305

Students• Participation 87.9%

Increasing Participation

• What can YOU do to increase participation?– Grab and Go Breakfast – Breakfast in the Classroom – Customized menus for different age groups – Creative marketing

• Special events• National School Lunch• National School Breakfast Week (March 3-7, 2014)• Find ways to increase adult participation

Paid Lunch Equity (PLE)

• The Healthy, Hunger-Free Kids Act of 2010” requires school food authorities (SFAs) participating in the National School Lunch Program to ensure sufficient funds are provided to the nonprofit school food service account for lunches served to students not eligible for free or reduced price meals.

Meeting the Requirement

• SFAs have two options to meet the PLE requirement: – Either through the prices charged for

“paid” lunches – Or, through other non-Federal sources

provided to the nonprofit school food service account.

Thank you!Stephanie N. Robinson, Director

Office of Child Nutrition, School Support Division

Mississippi Department of Education

snrobinson@mde.k12.ms.us

(601) 576-4955 (phone)

(601) 354-7595 (fax)