Pricing of Non-Program Foods and Meals

Calculation of Minimum Revenue from Nonprogram Foods

The Healthy, Hunger-Free Kids Act of 2010 requires school food authorities (SFAs) to annually review their financial data to ensure that prices for nonprogram foods are not subsidized by revenues from program meals. If the calculation shows that revenues from nonprogram foods are too low, nonprogram food prices must be raised as needed to meet the requirement.

“Nonprogram foods” are all foods including beverages, other than reimbursable meals, that are purchased from the school food service account. Nonprogram foods include, but are not limited to:

• A la carte items.

• Adult meals.

• Items purchased for fundraisers, vending machines, school stores, etc.

• Items purchased for catered and vended meals.

SFAs must annually document that their sales of nonprogram foods generate at least the same proportion of revenues as they contribute to SFA food costs. The calculation should be completed by October 1 following each school year, after cost and revenue data is complete.

The U.S. Department of Agriculture (USDA) has provided a Nonprogram Food Revenue Tool to help with this calculation. The Nonprogram Food Revenue Tool is also available from a link in the USDA Memos section of the School Nutrition Programs/Financial Management page on the Minnesota Department of Education website. The following information is needed to complete the calculations on the Nonprogram Food Revenue Tool:

• Cost of food for reimbursable meals.

• Cost of nonprogram food.

• Revenue from nonprogram food.

• Total revenue.

For additional details, refer to the Q&As about Revenue from Nonprogram Foods, which are on pages 6 through 8 of the USDA memorandum Child Nutrition Reauthorization 2010: Guidance on Paid Lunch Equity and Revenue from Nonprogram Foods.