WELCOME! Thank you for joining the

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• WELCOME! Thank you for joining the
• Fresh Fruit and Vegetable Program (FFVP)
  Orientation Webinar
• Part 2 Fiscal Responsibilities

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FFVP Orientation WebinarPart 2 Fiscal
Responsibilities
California Department of Education Nutrition
Services Division August 2014
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FFVP Orientation Webinar Series

• Part 1 Grant Overview
• Part 2 Fiscal Responsibilities
• Part 3 Claiming in CNIPS

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Objectives

• Discuss the FFVP funding, expenditure categories,
  and reimbursable expenses
• Identify grantee responsibilities including
  budget monitoring and record keeping
• Identify state responsibilities including
  approving claims, monitoring good standing
  status, and providing technical assistance

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Program Guidance

• USDA Fresh Fruit and Vegetable Program A
  Handbook for Schools (December 2010)
• California Fresh Fruit and Vegetable Program
  Guidelines (July 2014)
• USDAs Proposed Rules, published in February 2012
  expect Interim/Final Rules in 2014-15

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FFVP Grant Allocations

• FFVP grant awards are given in two allocations
• First July 1, 2014-September 30, 2014
• Second October 1, 2014-June 30, 2015
• The allocations indicate separate federal fiscal
  years

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Expenditure Categories

• In California, we have three expenditure
  categories
• Fresh Fruit and Vegetable Costs
• Operating Costsdirect labor, delivery charges,
  and small supplies
• Administrative Costs (limited to 10 of total
  grant award)indirect labor, equipment, and
  indirect rate

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Fresh Fruit and Vegetable Costs

• Documented expenses for the direct purchase of
  fresh fruits and vegetables
• A minimum of 70 percent of a grantees award must
  be spent on the direct purchase of fresh fruits
  and vegetables

California FFVP Guidelines (July 2014)
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Fresh Fruit and Vegetable Costs

• Allowable Items 
• Whole/sliced fresh fruits and vegetables
• Condimentslemons, limes, chili powder can be
  served with vegetables
• Dipsyogurt-based, low-fat or non-fat dips can be
  served with vegetables. Dip serving sizes cannot
  exceed 12 tablespoons.
• Please note that hummus , peanut butter, and sun
  butter can be used on a very limited basis as a
  dip.
• Cooked fresh vegetables must be limited to once a
  week and offered only as part of a nutrition
  education lesson.

California FFVP Guidelines (July 2014)
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Fresh Fruit and Vegetable Costs

• Unallowable items
• Processed/preserved fruits and vegetables  
• Fruit leather or jellied fruit, carbonated fruit
• Dips for fruit or cottage cheese
• Fruit or vegetable juice, smoothies 
• Trail mixes or nuts, fruit/vegetable pizza 
• Fruit that has been injected with flavorings 
• Most non-food items, except those allowed under
  supplies and administrative/operational costs

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Operational Costs

• These are documented expenses directly related to
  the delivering, preparing, and serving of fresh
  fruits and vegetables.
• Subcategories
• Direct Labor Costs
• Delivery Charges
• Small Supplies/Other

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Operational Costs

• 1. Direct Labor Costs
• Washing and preparing trays and baskets of
  produce
• Delivering produce to classrooms
• Serving produce
• Set-up and clean-up
• A prorated portion of fringe benefits for
  employees whose labor costs are charged as
  operating costs

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Operational Costs

• 2. Delivery Charges
• Expenses that relate directly to the delivery of
  fruits and vegetables for the FFVP.
• Please note your vendor may include delivery
  charges as part of the cost of the fresh fruits
  or vegetables therefore, you may not have a
  separate delivery charge.

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Operational Costs

• 3. Small Supplies/Other
• Napkins, paper plates
• Utensils, bowls, pans
• Trays, baskets, trash bags
• Allowable condiments/dips for fruits and
  vegetables

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Administrative Costs

• Costs that are not directly related to the
  preparing and serving of fresh fruits and
  vegetables but are necessary to administer the
  program.
• Subcategories
• Indirect Labor
• Equipment Purchasing or Leasing
• Indirect Rate

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Administrative Costs

• The grantee may use up to 10 percent of the total
  grant award for administrative costs necessary to
  operate the FFVP.
• Any administrative costs exceeding the 10 percent
  allowed, will not be reimbursed
• Grantees must prorate expenses as appropriate to
  ensure only the FFVP portion of the
  administrative expense is charged to the FFVP.

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Administrative Costs

• EXAMPLE an FFVP grantee is awarded 3,000 for
  the first allocation and 30,000 for the second
  allocation.
• The total grant award is 33,000, the maximum
  administrative allowance is 3,300 (10 of total
  award).
• The grantee may choose to spend the entire 3,300
  in one month or over the course of the grant
  year.

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Administrative Costs (continued)

• However, the grantee can only be reimbursed up to
  the total award amount of each allocation.
• Therefore, the grantee would not be able to claim
  the maximum administrative allowance of 3,300
  during the first allocation (which is 3,000),
  because it exceeds the award amount of that
  allocation.

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Administrative Costs

• Indirect Labor Costs
• Processing financial reports and claims
• Planning and writing menus ordering produce
• Accounting functions (i.e., invoicing, tracking
  inventory)
• Custodial costs

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Administrative Costs

• 2. Equipment
• Food bars (portable), carts, kiosks, and coolers
  used to deliver the fruit and vegetables
• Purchasing/leasing equipment such as a
  refrigerator for storage

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Administrative Costs

• Equipment Purchases
• An Equipment Justification Form is required
  before purchasing and/or
  leasing equipment that costs 100 or more per
  unit.
• This form is available in the Child Nutrition
  Information and Payment (CNIPS) in Download Forms
• E-mail Equipment Justification Form to
• FFVPClaim_at_cde.ca.gov

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Administrative Costs

• 3. Indirect Cost Rate
• Claiming the indirect cost rate is optional.
• The allowable indirect cost rate is either the
  State Approved District Indirect Cost Rate or the
  State Average Indirect Cost Rate, whichever is
  less.
• The State Approved District Indirect Cost Rates
  and the State Average Indirect Cost Rate (5.69)
  is available on the following CDE Web site
  http//www.cde.ca.gov/fg/ac/ic/.

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Administrative Costs

• Unallowable Costs
• Grant funds cannot be used to purchase nutrition
  education materials or nutrition promotion
  materials.

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Grantee Responsibilities

• Each grantee must
• Prepare a budget plan for their FFVP at the
  school and district levels to spend 100 of their
  grant award
• Monitor and track grant funds and expenses
  separately from other programs
• Maintain financial records for a least three
  years beyond the grant period

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Budgeting by School Site

• The FFVP grant is awarded by school site
• Budgets for all expenditure categories are by
  site
• Indirect labor costs may be prorated across sites
  

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Budget Monitoring
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Budget Monitoring

• The FFVP is a reimbursement program therefore,
  requires a school to spend and claim expenses
  before receiving reimbursement
• Grantees must account for the FFVP funds and
  expenses separately from other child nutrition
  programs
• FFVP expenses/reimbursements should be tracked
  using Resource Code 5370 (California School
  Accounting Manual - Procedure 310)

California School Accounting Manual
(2013) http//www.cde.ca.gov/fg/ac/sa/documents/c
sam2013complete.pdf
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Record Keeping

• Invoices
• Purchase Order Information
• Monthly Reimbursement Claims
• Vendor Information
• Payroll Documentation

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Record Keeping

• Payroll Documentation
• Required if employee salaries and benefits are
  charged to the FFVP Grant
• Semiannual Certification certifies the employee
  works solely on a single cost objective (program)
• Personnel Activity Reports (PARs) are required
  for employees who work on multiple cost
  objectives (more than one program)

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Record Keeping

• Semiannual Certification
• Single Cost Objective
• Prepared semiannually
• Signed by employee or supervisor
• Personnel Activity Reports
• Multiple Cost Objectives
• Reflect the distribution of the actual activity
• Account for the total activity

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Record Keeping

• Resources that Govern Payroll Documentation
• State guidance the California School Accounting
  Manual (CSAM) (November 2013, Procedure 905)
• Federal regulations Title 2 Code of Federal
  Regulations (2 CFR) Part 225, Appendix B, Item
  8.h
• Sample Semiannual Certification and a PARs forms
  are provided in the handouts of this presentation

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State Responsibilities

• Must monitor good standing status and spending of
  all grantees
• Must process claims monthly and validate claims
  for the annual Administrative Review
• Must provide technical assistance to grantees

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Good Standing Status

• California FFVP Guidelines (pages 7-8)
• Grantees are required to maintain good standing
  status with the FFVP and all of their Child
  Nutrition Programs (CNP) throughout the grant
  period
• SFAs cannot be documented as being severely
  deficient SFAs cannot have documented
  outstanding CNP administrative or program
  findings
• (FFVP Proposed Rules 7 CFR, Section 211.10(c) 7
  CFR, sections 226.6(c)(3) (ii), 225.11 (c), and
  210.24 and,
• The USDA FFVP Handbook for Schools, December
  2010, pages 4-5).

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Good Standing Status

• Each grantees good standing status was
  considered in the grant school selection process,
  and will be reviewed again prior to the release
  of the second FFVP allocation
• A grantee will be notified if there is concern
  about their good standing status

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Good Standing Status

• California FFVP Guidelines
• The CDE reserves the right to remove grantees
  from the FFVP or disallow them from receiving
  future FFVP funds if there are documented
  concerns with a grantees good standing status
• NEW Grantees are expected to spend 75-100 of
  their grant award, and the CDE will be monitoring
  each grantees spending pattern. Underspending may
  contribute to a grantees poor standing status.

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State Budget Monitoring

• The CDE must monitor grant spending
• Monitoring check points
• September We will determine if you are spending
  the first allocation.
• December We will release Mid-year Fiscal
  Assessment to help us assess if you are on track
  to spend the second allocation and determine if
  you need technical assistance.

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Managing Grant Funds
California awarded 11.1 million
SY 2012-13
Estimated Return 1,723,471
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Managing Grant Funds
California awarded 11.3 million
SY 2013-14
Estimated Return 897,578
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Claims Process

• Claims are now submitted, reviewed, and processed
  in the Child Nutrition Information and Payment
  System (CNIPS)
• No paper claims will be accepted
• Timeframe to process/pay a claim is 45 days
• Grantees should maintain backup documentation to
  support monthly claims

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Administrative Review (AR)

• SFAs that are scheduled for an AR will also have
  a review of the FFVP at one or more participating
  sites.
• The AR for the FFVP will include two areas claim
  validation and the on-site review.
• Field Services Unit staff will conduct both the
  on-site and off-site review.

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Administrative Review

• The off-site review will assess if
• The claimed items are allowable and claim costs
  can be validated with supporting cost
  documentation
• The on-site review will assess if
• The FFVP schools selected for review demonstrate
  compliance with the FFVP guidelines for
  implementation of the FFVP

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Technical Assistance

• CDE FFVP Web sites
• USDA Handbook and California Guidelines
• Newsletters and e-mail
  
• updates
• Live Webinars
• Direct contact from the FFVP Team

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California Department of Education Resources

• CDE FFVP Web page
• http//www.cde.ca.gov/ls/nu/sn/caffvp.asp
• CDE FFVP Funding Results Web page
• http//www.cde.ca.gov/fg/fo/r9/ffvp13result.asp

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US Department of Agriculture Resources

• The FFVP Web site http//www.fns.usda.gov/cnd/ffvp
  /
• USDA Handbook for Schools http//www.fns.usda.gov/
  sites/default/files/handbook.pdf
• Program Policy Memos http//www.fns.usda.gov/cnd/F
  FVP/policy.htm
• FFVP Tool Kit http//www.fns.usda.gov/cnd/ffvp/too
  lkit.htm
• Farm to School Initiative http//www.fns.usda.gov/
  cnd/F2S/Default.htm
• HealthierUS School Challenge http//www.fns.usda.g
  ov/tn/healthierus/index.html

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State Program Team
Isabelle Le Program Analyst ILe_at_cde.ca.gov 916-324
-0583 Sauncerae Gans Financial Analyst
SGans_at_cde.ca.gov 916-323-6775

• Elizabeth Moreno, MS, RD, CDE
• Nutrition Education Consultant
• EMoreno_at_cde.ca.gov
• 916-324-9749
• Crystal Young
• Program Analyst
• CYoung_at_cde.ca.gov
• 916-322-3435

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Contact Us
FFVP_at_cde.ca.gov FFVPClaim_at_cde.ca.gov
General program questions Permission for expenditures Questions about completing the claim form Submitting monthly reimbursement claim forms Permission for special expenditures Submitting Equipment Justification Forms
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THANK YOU!