Curtis Creek Elementary School District Report

T Curtis Creek Elementary School District F Food Service Review A April 17, 2020 R D Michael H. Fine Chief Executive Officer April 17, 2020 Terri Bell, Superintendent Curtis Creek Elementary School District 18755 Standard Road Sonora, CA 95370 Dear Superintendent Bell: In January 2020, the Curtis Creek Elementary School District and the Fiscal Crisis and Management As- sistance Team (FCMAT) entered into an agreement for FCMAT to conduct a review of the district’s Food Services Department. The agreement stated that FCMAT would perform the following: 1. Examine the Food Service Department’s operations including, but not limited to, food preparation, meal service, student participation, staffing, federal and state compliance, menu planning, purchasing, warehousing and food storage, inventory, and facilities, and make recommendations for improved efficiency, if any. 2. Evaluate the department’s workflow and distribution of functions, and make recommendations for improved efficiency, if any. 3. Review training and professional development programs for the department’s employees and managers, and make recommendations for improvements, if any. This final report contains the study team’s findings and recommendations. FCMAT appreciates the opportu- nity to serve the Curtis Creek Elementary School District and extends thanks to all the staff for their assis- tance during fieldwork. Sincerely, Michael H. Fine Chief Executive Officer Michael H. Fine • Chief Executive Officer 1300 17th Street – City Centre, Bakersfield, CA 93301-4533 • Tel. 661-636-4611 • Fax 661-636-4647 www.fcmat.org Table of Contents Table of Contents About FCMAT ...................................................................................................ii Introduction ......................................................................................................iv Background ...............................................................................................................iv Executive Summary ........................................................................................v Findings and Recommendations.................................................................1 Budget..........................................................................................................................1 Staffing and Meals per Labor Hour .....................................................................4 Participation and Eligibility ..................................................................................... 7 Meal Program Compliance and Menus ..............................................................9 Personnel Activity Reports ...................................................................................12 Training and Professional Development ...........................................................13 State Administrative Review .................................................................................15 Purchasing and Inventory .....................................................................................17 Facilities and Equipment .......................................................................................19 Appendix ...................................................................................................... 20 Study Agreement ...................................................................................................20 FFFiiissscccaaalll CCCrrriiisssiiisss aaannnddd MMMaaannnaaagggeeemmmeeennnttt AAAssssssiiissttaannccee TTeeaamm Curtis Creek Elementary School District ii About FCMAT About FCMAT FCMAT’s primary mission is to assist California’s local K-14 educational agencies to identify, prevent, and re- solve financial, human resources and data management challenges. FCMAT provides fiscal and data manage- ment assistance, professional development training, product development and other related school business and data services. FCMAT’s fiscal and management assistance services are used not just to help avert fiscal crisis, but to promote sound financial practices, support the training and development of chief business offi- cials and help to create efficient organizational operations. FCMAT’s data management services are used to help local educational agencies (LEAs) meet state reporting responsibilities, improve data quality, and inform instructional program decisions. FCMAT may be requested to provide fiscal crisis or management assistance by a school district, charter school, community college, county office of education, the state Superintendent of Public Instruction, or the Legislature. When a request or assignment is received, FCMAT assembles a study team that works closely with the LEA to define the scope of work, conduct on-site fieldwork and provide a written report with findings and recom- mendations to help resolve issues, overcome challenges and plan for the future. Studies by Fiscal Year 90 80 70 60 50 40 30 20 10 0 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 FCMAT has continued to make adjustments in the types of support provided based on the changing dynam- ics of K-14 LEAs and the implementation of major educational reforms.FCMAT also develops and provides numerous publications, software tools, workshops and professional learning opportunities to help LEAs operate more effectively and fulfill their fiscal oversight and data management responsibilities. The California School Information Services (CSIS) division of FCMAT assists the California Department of Education with the implementation of the California Longitudinal Pupil Achievement Data System (CALPADS). CSIS also hosts and maintains the Ed-Data website (www.ed-data.org) and provides technical expertise to the Ed-Data part- nership: the California Department of Education, EdSource and FCMAT. FCMAT was created by Assembly Bill (AB) 1200 in 1992 to assist LEAs to meet and sustain their financial obligations. AB 107 in 1997 charged FCMAT with responsibility for CSIS and its statewide data management work. AB 1115 in 1999 codified CSIS’ mission. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District ii seidutS fo rebmuN About FCMAT AB 1200 is also a statewide plan for county offices of education and school districts to work together locally to improve fiscal procedures and accountability standards. AB 2756 (2004) provides specific responsibili- ties to FCMAT with regard to districts that have received emergency state loans. In January 2006, Senate Bill 430 (charter schools) and AB 1366 (community colleges) became law and ex- panded FCMAT’s services to those types of LEAs. On September 17, 2018 AB 1840 was signed into law. This legislation changed how fiscally insolvent dis- tricts are administered once an emergency appropriation has been made, shifting the former state-centric system to be more consistent with the principles of local control, and providing new responsibilities to FCMAT associated with the process. Since 1992, FCMAT has been engaged to perform more than 1,000 reviews for LEAs, including school districts, county offices of education, charter schools and community colleges. The Kern County Superin- tendent of Schools is the administrative agent for FCMAT. The team is led by Michael H. Fine, Chief Execu- tive Officer, with funding derived through appropriations in the state budget and a modest fee schedule for charges to requesting agencies. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District iii Introduction Introduction Background The Curtis Creek Elementary School District is located in Tuolumne County in the city of Sonora and, ac- cording to 2018-19 census day enrollment, serves approximately 454 students at a single school site. The free and reduced meal eligibility for the district was 55.1% for the 2018-19 school year. The district has been deficit spending in cafeteria operations over the past several years and requested FCMAT to conduct a study of the district’s Food Services Department. Study and Report Guidelines In January 2020, the Curtis Creek Elementary School District and the Fiscal Crisis and Management As- sistance Team (FCMAT) entered into an agreement for FCMAT to conduct a review of the district’s Food Services Department. FCMAT visited the district on February 11, 2020 to conduct interviews with district and school site staff, col- lect data and review documents. Following fieldwork, FCMAT continued to review and analyze documents. This report is the result of those activities. FCMAT’s reports focus on systems and processes that may need improvement. Those that may be function- ing well are generally not commented on in FCMAT’s reports. In writing its reports, FCMAT uses the Asso- ciated Press Stylebook, a comprehensive guide to usage and accepted style that emphasizes conciseness and clarity. In addition, this guide emphasizes plain language, discourages the use of jargon and capitalizes relatively few terms. Study Team The study team was composed of the following members: Scott Sexsmith Roy Rico FCMAT Intervention Specialist FCMAT Consultant Laura Haywood FCMAT Technical Writer Each team member reviewed the draft report to confirm accuracy and achieve consensus on the final recommendations. FFiissccaall CCrriissiiss aanndd MMaannaaggeemmeenntt AAssssiissttaannccee TTeeaamm Curtis Creek Elementary School District iivv Executive Summary Executive Summary Budget One of the district’s primary concerns with the Food Service Department is ongoing deficit spending and the contributions from the unrestricted general fund. A review of the district’s cafeteria fund budget 2017-18 through 2019-20 shows that expenses have exceeded revenues in each year, and indirect costs have not been charged to the fund. The district’s unaudited actuals reports indicate that the cafeteria fund deficit spent $39,837 in 2017-18 and $40,045 in 2018-19 and, based on the first interim report, is projected to deficit spend $71,274 in 2019-20. The unrestricted general fund contributed $34,500 to the cafeteria fund in 2017-18 and $50,000 in 2018-19, and an additional contribution of $71,269 is projected in 2019-20. Based on FCMAT’s experience, labor costs and the costs for food and supplies should each be no greater than 40%-45% of revenue. The district’s costs for food and supplies is within the industry standard of 34% to 38% of rev- enue. The district’s annual labor costs from 2017-18 through the 2019-20 first interim report are much higher. The department has average labor costs of 80%-97% of annual revenue. To address deficit spending and the unre- stricted general fund contribution, the district needs to identify areas of cost reductions and/or revenue increases. Staffing, Meals per Labor Hour, Participation and Eligibility The Food Service Department has four employees, including a full-time food service manager. At the time of FCMAT’s fieldwork, one food service assistant position was open. The job descriptions for food service positions need to be reviewed and updated to ensure that duties and job requirements are current. Meals per labor hour (MPLH) is an industry-standard formula used to measure labor efficiency and help deter- mine appropriate staffing levels in a food service operation. In school food service, the best practice standard is 30 MPLH. FCMAT’s analysis shows 16 MPLH, which indicates overstaffing for the number of meals served. Even though the district has a low free and reduced-price eligibility percentage, the small campus with an accessible cafeteria should make it relatively easy for the district to have a higher participation percentage. Breakfast in the classroom, second chance breakfast, menu changes and food bars should all be explored. The food service manager needs to be the leader in menu planning to ensure compliance with regulations. Input from site food service staff should be obtained for menus, and a variety of foods should be offered without excessive repetition. Implementing a cycle menu would simplify this task. All menus need to be properly analyzed and recipes created. A user-friendly, easy-to-read menu should be developed and post- ed on the district website and in the school cafeteria. Meal Program Compliance and Menus Based on the limited number of documents provided by the district in this review area and FCMAT’s meal service observations, it appears that the district offers the correct amount of fruits and vegetables, includ- ing the subgroups. However, some of the fruits are repeated rather than giving students a variety of choic- es. National School Lunch participants must maintain meal production records that document the amounts and types of foods used to comply with federal and state regulations. To further review compliance in this area, the FCMAT study team requested two weeks of production records that were not provided; therefore, this area was reviewed as if the documents were never created or recorded. FFiissccaall CCrriissiiss aanndd MMaannaaggeemmeenntt AAssssiissttaannccee TTeeaamm Curtis Creek Elementary School District vv Executive Summary The district’s monthly menus are incomplete. Only the main entrée is listed on each day of the month, with a vague list of possible side items listed in a separate section. It is difficult for students and parents to de- termine the complete menu being offered on any given day. The food service manager writes the menus, and district administration approves them. The menus consist of a combination of partial scratch and ready- made packaged items. Personnel Activity Reports The district needs to ensure that all multifunded positions are documented by personnel activity reports (PARs) as required by the CDE and federal regulations. Alternative documents such as a predetermined work schedule may be acceptable instead of a PAR to document the time an individual works on multiple activities or cost objectives on a predetermined or fixed schedule. This alternative method must be preap- proved by the state before it is used. Training and Professional Development Food service staff members need to receive regular training to be able to understand and perform their jobs and follow regulations. The USDA has established minimum training requirements for food service personnel. An annual staff training plan is needed to ensure that specific topics, such as required food components and por- tions for meal service, are explained and understood. It is essential for the food service manager to thoroughly understand and implement program regulations, stay current with and train all staff in the necessary program requirements, and routinely evaluate the program to ensure compliance and efficient program operation. State Administrative Review The district’s last review was in 2018-19. The review cited several areas of noncompliance, and the district was informed of required corrective action. Some issues were corrected at time of review, some required corrective action, and some resulted in technical assistance. Purchasing and Inventory The function of inventory is to help a food service department identify the items in stock, their related costs and how best to manage and control them. The FCMAT study team requested inventory records but none were provided; therefore, this area was reviewed as if these documents were not recorded or created. The district does not publish bids or request proposals for any of the products used in the food service pro- gram. Although Education Code and district regulations allow for products to be purchased without a bid, districts often find they can obtain the best price and service by issuing a bid, obtaining quotes, or piggy- backing on the bids of other districts. Facilities and Equipment The FCMAT study team visited the district’s food preparation kitchen and storage areas. For the size of the district, the facilities are adequate. The replacement of outdated kitchen equipment could be a significant improvement. Two equipment items require immediate replacement. The double-stack oven has a hole in the bottom section and the salad bar has a crack in the sneeze guard. According to district staff, quotes were being obtained to replace both items. FFiissccaall CCrriissiiss aanndd MMaannaaggeemmeenntt AAssssiissttaannccee TTeeaamm Curtis Creek Elementary School District vvii Findings and Recommendations Budget Findings and Recommendations Budget A district food service program should ideally be self-sustaining. Revenues generated by a program should be able to fund all department expenses, including indirect costs, with appropriate reserves maintained. FCMAT reviewed the district’s cafeteria fund budgets for the current and preceding two fiscal years and found that since fiscal year 2017-18 program expenditures have exceeded revenues (also known as deficit spending), which indicates an ongoing structural budget deficit. The unaudited actuals report for the dis- trict’s cafeteria fund indicate that the food service program deficit spent $39,837 in 2017-18 and $40,045 in 2018-19. The district’s 2019-20 first interim report projects that the program will deficit spend $71,274. The district does not charge indirect costs to the cafeteria fund. Indirect costs are business and adminis- trative expenses for services provided to all programs, such as budget, payroll, accounts payable, human resources and data processing. The true program cost is not shown if indirect costs are not budgeted and charged to the cafeteria fund. The California School Accounting Manual (CSAM) provides guidelines for allowable indirect cost amounts and how to calculate them. Even in a deficit spending situation, the dis- trict should charge indirect costs to the cafeteria fund because they are legitimate responsibilities of the program. The district’s 2017-18 unaudited actuals report and its audited financial statements for the fiscal year ended June 30, 2018 indicate a fund balance of $6,746; however, $34,500 was transferred in from the unrestrict- ed general fund. The 2018-19 unaudited actuals report indicates a cafeteria fund balance of $16,701, and $50,000 transferred in. Food and labor costs are the majority of any food service expense budget. Based on the study team’s experience, to manage the program effectively the goal for these expenses should be 40%-45% each as a percentage of revenue. The district’s labor expenses are much higher throughout the period reviewed. Labor costs were 80% of revenue for fiscal years 2017-18 and 2018-19. Food costs for the period reviewed are within the industry standard of 34% to 38% of revenue. The district’s first interim report indicates that the program will deficit spend in the amount of $71,274 in 2019-20, with a projected transfer in of $71,269 from the general fund. An analysis of the report indicates that labor is projected to be 97% of revenue, well above the standard of 40%-45%. In addi- tion, the district does have uncollected student meal charges. At the time of FCMAT’s review, the total amount was not available. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 1 Findings and Recommendations Budget Cafeteria Fund Budget Trends 2017-18 2018-19 2019-20 Unaudited Actuals Unaudited Actuals First Interim Beginning Fund Balance $12,083 $6,746 $16,701 Total Revenues 167,527 171,626 177,642 Salaries 93,701 90,862 117,314 Benefits 40,822 45,662 55,266 Total Salaries and Benefits 134,523 136,524 172,580 Salaries/Benefits% of Revenue 80% 80% 97% Food and Supplies 59,102 65,936 60,366 Food/Supplies % of Revenue 35% 38% 34% Services and Other Operating 13,739 9,211 16,000 Indirect Costs 0 0 0 Total Expenditures 207,364 211,671 248,916 Excess (Deficiency) (39,837) (40,045) (71,274) Transfers In 34,500 50,000 71,269 Ending Fund Balance $6,746 $16,701 $16,696 Source: District financial reports Rounding used in calculations To address deficit spending and the unrestricted general fund contribution, the district needs to identify areas of cost reductions and/or revenue increases. As discussed in other sections of this report, revenue may be increased and/or costs reduced by increasing student participation, standardizing menus, collecting outstanding student meal debt, changing procurement and ordering practices, and operating offer ver- sus serve correctly (a meal planning option that is discussed further in the meal program compliance and menus section of this report). Food costs will vary depending on the type of services offered. Districts that offer only meals cooked from scratch have lower food costs but higher labor costs than those that buy premade meals. For example, food costs for meals prepared from scratch should be approximately 35% of revenue, while premade meals are usually 40%-45% of revenue. Because the district offers both premade meals and meals made from scratch, its average food cost should be approximately 40% of revenue. The district’s food costs for the period re- viewed are within the industry standard of between 34% and 38% of revenue. A review of the district’s annual labor costs from 2017-18 through the 2019-20 first interim report indicates they are much higher than the expected standard. The department has average labor costs of 80% to 97% of annual revenue. It is important to keep a balance of revenue to expenditures; to accomplish this, labor costs should be within the recommended guidelines of 40%-45% of total revenue. A portion of the increased cost for labor has been imposed on the food service program because of increases in the Cali- Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 2 Findings and Recommendations Budget fornia Public Retirement System (PERS) employer contribution rates. It would benefit the district to review the program’s hourly labor and benefit rates and compare them to other programs in similar regions. High labor costs can also be an indicator of excess staffing, which is further analyzed in the staffing and meals per labor hour section of this report. Recommendations The district should: 1. Eliminate deficit spending in the cafeteria fund by developing and implementing a plan to reduce expenditures and/or increase revenues. 2. Charge the full allowable indirect cost rate to the cafeteria fund. 3. Reduce its labor costs to align with industry standards and best practices. 4. Review the hourly labor and benefit rates for the Food Services Department and compare them to other programs in similar regions. 5. Review department staffing levels to identify labor efficiency, review each open position against efficiency ratios before filling the position, and reduce labor hours. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 3 Findings and Recommendations Staffing and Meals per Labor Hour Staffing and Meals per Labor Hour Staffing Because labor costs are generally one of the largest expenses in a food service operation, it is important for the department to operate efficiently and to ensure that staffing ratios are adequate to meet the needs of the program without being excessive. Best practice for labor costs is approximately 40%-45% of revenue. As discussed in the budget section of this report, labor costs in the prior two years reviewed have been 80% of revenue. Current year projections are 97%. This is excessive and often indicates overstaffing. The Food Service Staff Department consists of the following: • Food Service Manager 8 hours • Food Service Assistant 4 hours • Food Service Assistant 3 hours (position currently vacant with a substitute when available) • Food Service Assistant 2 hours • Total Hours 17 hours The district consists of one K-8 school campus. Students have staggered lunch periods grouped by grade level. A program with one kitchen and one cafeteria should provide for an efficient meal service. All employ- ees are in one place and all food deliveries, storage, preparation, service and cleanup happen centrally. This should require fewer employees and fewer labor hours than a district of many sites with staff and food to transport. The study team observed both breakfast and lunch service during its site visit. The food service manager reports at 6 am to prepare breakfast and works until 2:30 pm. The 4-hour food service assistant reports at 7:15 am and works until 11:15 am. The food service assistant manages breakfast meal setup and service on the serving line and the food service manager records meals served at the Mosaic point-of-service (POS) computer. The other two food service assistants report at 10:30 am and 11:30 am respectively and work un- til 1:30 pm to assist with lunch meal service and cleanup. The food service manager also operates the POS at lunch. The food service assistant job description is outdated. It has an approval date of December 6, 2001. The job description includes tasks that are not relevant to the food service program. It also lists duties related to food delivery to another school site; however, the district has only one school. In addition, the job descrip- tion does not list the mandatory requirement of a food safety certificate. The food service manager job description lists a combination of administrative and food preparation duties. The job description has an approval date of September 12, 2006. Most of the job duties and requirements are still relevant; however, the responsibility of operating a POS system to account for reimbursable meals is not listed. During the study team’s breakfast and lunch meal observation, the food service manager is the employee that certifies that students are being served a reimbursable meal by utilizing the POS. This is an important function of a food service program because most of the department’s revenue is generated from student reimbursable meals participation. Reviewing and revising job descriptions to ensure that duties and job requirements are correctly identified is essential. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 4 Findings and Recommendations Staffing and Meals per Labor Hour Meals per Labor Hour Meals per labor hour (MPLH) is an industry standard used to assess labor efficiency and help determine appropriate staffing levels. Usually only labor hours for food service staff at schools are used in the calcula- tion. Labor hours for management, clerical and warehouse staff are not included because the calculation is a measure of the labor it takes to prepare and serve the meals at schools. However, many duties are shared in this food service program so there is no clear separation of duties and all food service hours are includ- ed in the calculation. An MPLH analysis was completed for the district that analyzed the meals served in September 2019. Typ- ically, the month of October is used for the analysis, but the district could not provide accurate free and reduced-price meal eligibility information for October due to an error in the student eligibility accounting system. October is the cutoff month for prior year student eligibility and new meal applications processing, so the month normally provides an accurate snapshot of student participation. MPLH is calculated in many ways, and it is important to be consistent in the method used. Breakfast is sometimes counted as a fraction of a meal equivalent because it is simpler to prepare and serve. The dis- trict’s breakfast menus are a combination of ready-to-serve items, and some are prepared and cooked on site. Therefore, breakfasts were each counted as one meal equivalent in this analysis. The district does not serve snacks or a la carte items. It is best practice to maintain an MPLH of approximately 30. The district has an average of 16 MPLH, indicat- ing overstaffing. Meals per Labor Hour - September 2019 Breakfasts per Month 1,743 Breakfasts per Day 87 Lunches per Month 3,780 Lunches per Day 189 Total Meals for Month 5,523 Total Meals per Day 276 Total Meal Equivalents 276 Labor Hours 17 Meals per Labor Hour (MLPH) 16 Source: September 2019 reimbursement claim. Rounding used in calculations. At the time of FCMAT’s fieldwork, a three-hour food service assistant position was vacant, and a substitute was covering the position. Based on the current MPLH calculation, the district should consider not filling this position. The other food service assistants could split the duties. Food service employees have worked for the department for many years and are accustomed to perform- ing tasks as they have in the past. Changes such as eliminating positions, reducing hours or changing du- ties to require more crossover of responsibilities may be difficult for some staff. The best method of dealing with a staffing reduction is often by eliminating vacant positions. Staff should be informed about the depart- ment’s financial issues, such as deficit spending and the contribution from the unrestricted general fund, so Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 5 Findings and Recommendations Staffing and Meals per Labor Hour they understand why changes are necessary. A team effort will be necessary to improve the food service program, and staff are more likely to accept changes if they understand the reasons. Recommendations The district should: 1. Review and revise the Food Services Department job descriptions to reflect current job duties and requirements of positions. 2. Establish a procedure to regularly reconcile the food service software system and the student information system to ensure that the food system includes accurate information. 3. Consider not filling the vacant 3-hour position. 4. Reduce labor hours if student participation is not significantly increased. 5. Review all vacancies as they occur to determine if they can be eliminated or reduced in hours. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 6 Findings and Recommendations Participation and Eligibility Participation and Eligibility Participation The average number of meals served per day in September 2019-20 was also compared to participation in school years 2017-18 through 2018-19. There was a significant reduction in the average number of lunch- es served in 2018-19 compared to the other two fiscal years. As discussed later in this report, changes in meal counts and participation should be closely monitored to determine if menu changes have a significant impact. Meal Comparisons - September of Each Year 2017-18 2018-19 2019-20 Daily Averages Breakfast 78 76 87 Lunch 193 171 189 Source: September reimbursement claims. Rounding used in calculations. MPLH ratios can be improved in two basic ways: increase student participation or reduce staff, and it often requires some of each. The most positive way to improve MPLH is to increase participation. Even though the district has a low free and reduced-price eligibility percentage, the small campus with an accessible cafeteria should make it relatively easy for the district to have a higher participation rate. Making sure students have breakfast provides them with nutritional benefits, helps increase academic achievement, and could increase cafeteria revenue and be part of the solution to balance the food service budget. Because of the district’s current low participation, any increase in breakfast participation would be a significant increase in revenue. Although food costs would increase, labor costs should not because the current number of labor hours could accommodate an increase in student participation. The district should consider other alternatives to capture the maximum participation. Many districts offer a midmorning breakfast or second chance breakfast during a nutrition break or passing time. This may help increase breakfast participation and thus improve MPLH results. This often works well because many stu- dents either arrive late or are not hungry before school but are much more interested in eating later in the morning. A method that may ensure that 100% of students in attendance participate is serving breakfast in the classroom. The main complaints about this method of service are messes in the classroom and time taken away from teaching. These concerns have been overcome in districts that have successfully implemented this type of service. Ready-to-eat entrées such as cereal bars, muffins, and breakfast sandwiches could be served along with fruit, juice, and milk. Students can eat at their desks while teachers make morning an- nouncements and take attendance. Reimbursable breakfast meal counts can be completed when taking at- tendance. Some teachers use this time to give nutrition or health lessons, which can help fulfill the wellness requirements for nutrition in the classroom. Another breakfast alternative for middle school students is to offer a second chance breakfast at the morning break. The Food Services Department could consider serving grab-and-go breakfasts in the quad area rather than having the students come in the cafeteria. This is often a better alternative for this age group because they frequently are not hungry first thing in the morning. This may not be a viable option for elementary students because their lunch periods are much earlier and scheduling a midmorning breakfast would be difficult. However, this option could also be considered if the bell schedules can be arranged to accommodate this type of service. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 7 Findings and Recommendations Participation and Eligibility Eligibility Eligibility is an important factor in meal participation. Forty-four percent of the district’s students are eligible for free or reduced-price meals, and only an average of 62% of eligible students participate in the lunch pro- gram. An average of 29% of free or reduced-price eligible students participate for breakfast. Total district par- ticipation (students eligible for free or reduced-price meals and those who pay) at breakfast is just 18%, and at lunch 38%. It is not uncommon for before-school breakfast participation to be low, but participation should be higher at lunch. Ways to improve lunch participation are discussed in another section of this report. Student Enrollment and Meal Eligibility 2017-18 2018-19 2019-20 Enrollment 457 450 494 Free and Reduced-Price Meal Eligible Students 249 240 219 Percent of Enrollment 54% 53% 44% Source: September reimbursement claims. Rounding used in calculations. The district uses the standard method of claiming federal and state reimbursement for breakfast and lunch served to students. With this method, the district receives reimbursement based on each participating stu- dent’s meal eligibility of free, reduced, or paid. For students who qualify for free lunch, the district can claim the highest reimbursement of $3.67 for each served meal; the reduced-priced per-meal reimbursement rate is $3.27; and the district gets 34 cents for each paid meal. The rates of reimbursement typically increase slightly each school year. Aside from these reimbursement rates, the district receives an additional seven cents per meal for all lunches served (free, reduced, and paid). The district receives reimbursement by reporting daily counts of meals served by eligibility category using Mosaic, an automated meal counting system. The district’s internal audit report dated June 30, 2019 for fiscal year 2018-19 indicates an audit finding of $5,176. The error is the result of 10 student records having the incor- rect eligibility status. The district has implemented a three-step process for reviewing and certifying student meal application forms to verify and confirm that applications are correctly certified. As discussed in the meals per labor hour section of this report, the eligibility data reporting system for the district is also an issue. Recommendations The district should: 1. Make increased student participation a priority, and consider the following options: • Provide breakfast alternatives such as grab-and-go meals, breakfast in the classroom and/or a second chance breakfast. • Encourage students to participate in the program. • Educate staff in the importance of student participation in the food service program. 2. Closely monitor changes in meal counts and student participation and adjust menus as necessary. 3. Ensure that the food service manager monitors student eligibility monthly. Compare to participation to identify issues or trends and adjust menus, meal service times, and/or location as necessary. 4. Ensure that each student’s meal application eligibility is correctly certified in all district student data systems. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 8 Findings and Recommendations Meal Program Compliance and Menus Meal Program Compliance and Menus Meal Pattern Requirements The district participates in the National School Lunch and School Breakfast programs, which are regulated by USDA and the CDE. During federal reauthorization in 2010, regulations were updated with the most com- prehensive changes to the program in 15 years. Initial guidelines became effective in the 2012-13 school year and have continued to become stricter. Section 9(a)(4) of the Richard B. Russell National School Lunch Act (NSLA) requires that school meals adhere to the latest Dietary Guidelines for Americans (Title 42 United States Code Section 1758(a)(4)). In addition, Section 201 of the Healthy, Hunger-Free Kids Act of 2010 amended Section 4(b) of the NSLA to re- quire the USDA to issue regulations to update meal patterns and nutrition standards for school lunches and breakfasts based on recommendations issued by the Food and Nutrition Board of the National Research Council of the National Academy of Sciences. These websites contain additional information regarding the regulations: www.fns.usda.gov/school-meals/healthy-hunger-free-kids-act www.cde.ca.gov/ls/nu/sn/nslp.asp The regulations seek to increase the fruits, vegetables, whole grains, and fat-free and low-fat fluid milk on school menus; reduce the levels of sodium, saturated fat and trans-fat in school meals; and meet the nutri- tional needs of schoolchildren within specified calorie requirements. The intent is to provide meals that are high in nutrients and low in calories, which better meets students’ dietary needs and protects their health. In addition to higher fruit and vegetable requirements, districts must offer a wider variety of vegetables, including specified weekly amounts of vegetable subgroups. These subgroups include dark green, red/ orange, starchy, and legumes. Although this is nutritionally sound, it has complicated menu planning and, to some extent, student acceptance. A full cup of fruit must be offered at breakfast for all grade levels. At lunch, one-half cup of fruit and three-fourths cup of vegetables must be offered to K-8 students, and one cup of both fruit and vegetables must be offered to high school students. Students must take at least one- half cup of fruit or vegetable with both breakfast and lunch, regardless of whether they want it. Districts have experienced an increase in waste because of this requirement. Based on the limited number of documents provided by the district in this review area and FCMAT’s meal service observations, it appears that the district offers the correct amount of fruits and vegetables, includ- ing the subgroups. However, some fruits are repeated rather than giving students a variety of choices per the intent of the regulations. For example, during the study team’s meal service observations, a fresh apple served for breakfast was also served for lunch. National School Lunch participants must maintain meal production records that document the amounts and types of foods used to comply with federal and state regulations. To further review compliance in this area, the FCMAT study team requested two weeks of production re- cords from the district. The district did not provide the documents; therefore, FCMAT has reviewed this area as if the documents were never created or recorded. Menus The district’s monthly menus are incomplete. They follow the K-8 meal pattern but there is no apparent pat- tern in how they are written. Only the main entrée is listed on each day of the month, with a vague list of pos- Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 9 Findings and Recommendations Meal Program Compliance and Menus sible side items listed in a separate section. It is difficult for students and parents to determine the complete menu being offered on any given day. The food service manager writes the menus, and district administration approves them. The menus consist of a combination of partial scratch and ready-made packaged items. Most school districts use a system in which menus are repeated within a specific time frame, such as every four weeks. In a cycle menu the same items often appear on the same day of the week or the same week in the month so students can anticipate favorite menu days. Because some days are more popular with students than others, a cycle menu helps food service staff and the manager establish a product usage history, which in turn makes it easier to order the correct quantities in advance. During interviews there was some discussion of a desire to go back to all scratch cooking. Due to labor concerns, and the fact that there are many good quality ready-made products available, a combination of “speed-scratch” or partial scratch cooking could be utilized, along with ready-made packaged items. Speed scratch is when precooked products, such as pre-cooked ground beef, are used for tacos, nachos, and spa- ghetti. For food quality and more appeal, all menu possibilities should be considered. Many districts have had success offering two or more entrées at lunch for middle school students. Food bars such Italian, Mexican, or Asian are also popular with this grade level. These food bars can be a little more time consuming for food service staff and more challenging to fit within regulations, but they are often popular with students and provide them with more flexibility to mix and match food components that suit their preferences. The same foods are used for other menu items so inventory isn’t increased, but ingredi- ents can be mixed and matched to tailor to student preferences and promote more participation. Meal Service Offer versus serve (OVS) is a meal planning option that allows students to decline some of the food offered in a reimbursable meal. The goal is to reduce food waste and extra expense while letting students choose the foods they want to eat. At least five items must be offered at lunch and four at breakfast. Students may take all the items offered; however, they are only required to take three items at each meal. Other than the requirement that one of the items be a fruit or vegetable, students may choose or refuse whatever they want. Regulations require OVS at high schools, and it is highly encouraged at other grade levels. The district does not follow the OVS concept correctly. Students do not select the required number of items for a reimbursable meal. During the study team’s breakfast and lunch meal observation, several students left the serving line without a complete meal. The meals were still recorded as reimbursable in the Mosaic point-of service system. In a state administrative meal program review, these meals would be disallowed, and fiscal action potentially taken against the program. On the day that FCMAT visited the district, students were offered a choice of entrée for breakfast, either a breakfast burrito or cereal, and cranberries, yogurt, apple, graham crackers, and milk as other side options. The burrito was prepared on site, but neither the production record nor the recipe were available at time of meal service. The district also provides breakfast daily in a classroom before school for a group of approxi- mately 30 students known as the M & M club. For lunch, the students were offered nachos for the main entrée, but the menu noted that it was Taco Tues- day. The side items offered were corn, apples, cherries, salad mix, and choice of milk. The main entrée was served on the main serving line, and all other items on the salad bar. The milk was in crates on the floor in front of the salad bar. The food trays were being stacked with nacho chips on the serving line prior to students picking up their tray. This is an unsanitary practice as the nacho chips came into contact with the bottom of the trays. The corn was a hot entrée, so it could be offered on the regular serving line along with the main entrée. The salad bar was not equipped with ice or reusable portable ice packs to maintain the Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 10 Findings and Recommendations Meal Program Compliance and Menus items offered at the proper temperature. FCMAT requested temperature logs from the district for a one- week period, but the district was unable to provide the requested documents. FCMAT has reviewed this area as if these documents were never created or recorded. Recipes The district lacks recipes for menu items and products being served. FCMAT was provided with several ge- neric USDA recipes rather than standardized recipes used for the district’s menu items. Regulations require recipes for all items served even if they are convenience products. FCMAT requested the recipes for two main entrée items offered during the month of January 2020 and none were provided. To analyze menus in a nutritional analysis software program, recipes must first be created that include the product name, yield per case, portion size, cooking instructions, and required temperatures for heating and holding. Recipes should be created for all items served, including salad items that change throughout the week. A basic recipe could be written, along with a weekly rotation guideline stating what fruits and vegetables are served each day of the week. Such a guideline is necessary to ensure that the program is following guide- lines and the intended menus are complete and compliant. It would also assist staff with not offering the same items for both meal services. Recommendations The district should: 1. Offer a variety of fruits and vegetables, ensure that the varieties listed on the menu are what is served, and ensure that guidelines regarding the day’s items to be served are pro- vided to food service staff. 2. Create a written menu format for public use (cafeteria posting and website) that is easy to read and is complete, with all daily menu items listed. 3. Implement a four-week menu cycle to make nutritional analysis, production records, order- ing and inventory more efficient. 4. Consider offering two or three entrée choices and/or themed food bars for middle school students. 5. Ensure that the food service manager oversees the entire menu process and ensures that regu- lations are met, appropriate variety is offered without repetition, and staff follow the menu. 6. Create recipes in the Mosaic nutrient analysis software program for all items used on the menus, including convenience foods. Assemble a recipe book based on current menus, and update recipes with all menu changes. 7. Ensure that all staff are trained in food safety procedures when preparing meal trays; en- sure that milk is offered in a holding container at the proper temperature. 8. Ensure that all food service staff are trained in offer versus serve requirements. 9. Ensure that the food service manager is knowledgeable about the regulations regarding recipes and nutrient analysis. 10. Ensure that the food service manager attends training provided by Mosaic regarding the nutrient analysis software program. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 11 Findings and Recommendations Personnel Activity Reports Personnel Activity Reports Personnel Activity Reports (PARs) are detailed documents that support the salary and benefit distribution of employees who work on multiple activities or cost objectives. These reports identify the employees’ daily activity by hours or percentage of hours spent in each program. The federal requirements for PARs (Code of Federal Regulations Title 2, Part 225, Appendix B 8. h.) state that the documents must: • Reflect an after-the-fact distribution of the actual activity of each employee. • Account for the total activity for which each employee is compensated. • Be prepared at least monthly and coincide with one or more pay periods. • Be signed by the employee. • Not represent budget estimates or distribution percentages determined before the ser- vices were performed. In September 2012, the United States Department of Education (USDE) approved a new system, called the Substitute System Based on Employee’s Predetermined Schedule, that can be used as a substitute for the usual PARs reporting and that simplifies recordkeeping. Districts must meet specific criteria to qualify for this option. Alternative documents such as a predetermined work schedule may be acceptable instead of PARs to document the time of an individual who works on multiple activities or cost objectives on a predetermined or fixed schedule. An employee who documents time under this system is permitted to certify time periodically (at least semiannually) rather than monthly. This alternate method must be preapproved by the state before it is used. More information about this option and the Substitute System Based on Sampling Method may be found in the CSAM and on the CDE website at http://www.cde.ca.gov/fg/ac/co/timeaccounting2013.asp. The district’s Food Services Department has one custodian who works two hours a day for the food service program to take out trash and clean the cafeteria after lunch. The district provided the FCMAT team with a labor and benefits history report from 7-1-2019 through 1-31-2020 for this employee; however, no PAR form was provided for this position. FCMAT also learned from interviews with staff that a bus driver is also assigned to clean the cafeteria daily after the breakfast meal service. It was indicated that a PAR has not been completed for this employee. Because these positions do not work solely for food service, the district needs to keep documents to as- sess the actual time spent in various activities and make budget adjustments for salary and benefit charges accordingly. Recommendations The district should: 1. Complete PARs for the positions that are funded from multiple sources and ensure that salaries and benefits are charged to the appropriate accounts. 2. Ensure that all positions funded from multiple sources are properly documented by PARs as required by the CDE and federal regulations. Maintain all documents for the state administrative review. 3. If a substitute time accounting method is selected and used, ensure that the method is approved by the CDE as needed and that federal regulations and procedures described in the CSAM are followed. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 12 Findings and Recommendations Training and Professional Development Training and Professional Development All food service personnel need to receive regular, ongoing training to understand and perform their jobs. Training is essential, and it is now mandatory. The USDA established minimum training requirements for school food service personnel that became effective July 1, 2015. The requirements mandate professional standards and annual training requirements for child nutrition directors, managers, and staff. The annu- al training hours required vary depending on each position and/or the number of hours worked. Training needs to be documented and will be evaluated during state administrative reviews. Information about this mandate, as well as training resources, can be found at http://www.fns.usda.gov/school-meals/profession- al-standards. Interviews with staff and observations by the study team indicated that regularly scheduled food service training is not provided. Some staff members are not knowledgeable about the required food components and portions for meal service to comply with the OVS concept. This concept applies to menu planning and the meal service and is explained in the meal service section of this report. Because students may choose fewer selections under OVS, guidance must be provided on what constitutes a reimbursable lunch and breakfast. During the study team’s breakfast and lunch meal service observation, staff members and students seemed unclear about portion control and what constitutes a complete reimbursable meal. There were frequent incidents in which students left the serving area with too little food on their trays or were missing the re- quired fruit or vegetable item. It is essential for a food service manager to thoroughly understand and implement program regulations and stay current with and train all staff in the requirements. The district needs an annual food service staff train- ing plan to ensure that specific food service topics are explained and understood, and the food services manager needs to monitor compliance, observe serving lines, and remind staff of requirements as needed. This type of hands-on interaction and training is effective. The food service manager does not conduct regularly scheduled meetings with food service assistants or annual meetings. These meetings are needed to discuss food service topics such as new regulations, procedural changes, and menu planning. The food service manager and the food service staff would also benefit from visiting other school districts’ food service departments and observing their meal service. Networking like this can help provide new ideas as well as information about efficiencies and cost-saving measures. When staff work in only one environment, they often cannot visualize other ways to perform their duties. Observing other food service operations can help stimulate new ideas for menu planning, food production methods and other services. Recommendations The district should: 1. Identify areas in which the food service manager and food service staff need training and ensure that it is provided. Urgently needed training topics include food service safety practices, and program requirements such as portion sizes and meal components. 2. Ensure that the USDA’s training requirements are met. 3. Assign the food service manager to develop and implement an annual training plan and to schedule regular training sessions for food service staff. Training can be provided in the department, through online webinars, and at conferences. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 13 Findings and Recommendations Training and Professional Development 4. Ensure that the food service manager provides staff members with information regarding regulations and changes to regulations, and that staff are held accountable for following them. 5. Document all trainings and retain these training records for each staff member. 6. Ensure that the food service manager regularly monitors the program and provides immediate staff training on any practices that need improvement. 7. Send the food service manager and food service staff members to other school districts to observe food service operations. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 14 Findings and Recommendations State Administrative Review State Administrative Review Child nutrition programs undergo a state administrative review every three years to assess program compli- ance. On February 5, 2019 the CDE Nutrition Services Division (NSD) submitted a waiver to the U.S. De- partment of Agriculture (USDA) to extend the current School Nutrition Programs administrative three-year review cycle to a five-year cycle. On May 28, 2019, the NSD received notification from the USDA that the waiver request was approved to extend administrative reviews to a five-year cycle. The CDE School Nutrition Programs administrative review includes all aspects of the program such as menu compliance, meal counting and claiming, eligibility determination, food safety, financial compliance and the wellness policy. The CDE’s review objectives are below. (Note: a school food authority is the gov- erning body responsible for food services in a district.) The CDE and the school food authority (SFA) collaborate to complete the administrative review to ensure program integrity and increase overall compliance, with the following objec- tives: • Determine if the SFA is meeting all federal and state School Nutrition Program require- ments • Provide focused technical assistance to assist the SFA with correcting any findings • Secure necessary corrective action documentation demonstrating the SFA’s permanent corrections • Assess fiscal action and, when applicable, recover improperly paid funds The district’s last administrative review was in 2018-19. The review cited several areas of noncompliance, and the district was informed of required corrective actions. Some issues were minor and were corrected at the time of the review, some required follow-up corrective actions by the district, and some resulted in technical assistance. A summary of the review’s findings is as follows: • A review of agricultural food components indicated a violation of the Buy American Pro- vision. The provision requires school food service programs to purchase domestic com- modities or products, to the maximum extent possible. However, the CDE has developed a Buy American Provision Exception Worksheet to assist school districts with documenting exceptions to the provision requirements. Exception documentation must be kept on file for at least three years including the current school year and must be available during a state administrative review. Additional information and guidelines on the Buy American Provision can be found at: https://www.cde.ca.gov/ls/nu/sn/fsmcproc.asp#buyamerican. • The food safety requirements were not met. The most recent food safety inspection was not posted in a publicly visible location. Schools participating in a child nutrition program are required to post a report of the most recent health department inspection and provide a copy of the inspection report to a member of the public upon request. • The verification selection process requirements were not met. The letters sent to partici- pants of the program to notify them of the selection process were not dated. Households selected for verification must be notified in writing that their application was selected for verification. • Civil rights requirements were not met. The district did not have a civil rights procedures system. The purpose of this system is to inform food service program applicants and par- Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 15 Findings and Recommendations State Administrative Review ticipants of program rights and responsibilities, and the procedure for filing a complaint. In addition, the M & M program did not have the USDA “And Justice for All” poster displayed. On July 8, 2019 the USDA notified child nutrition sponsors to cease distribution of the post- er because it was being updated. As a result, missing posters would not be a finding during an administrative review until new posters were available. On January 24, 2020 the CDE notified sponsors that the updated posters are now avail- able. Information regarding this communication and the appropriate non-discrimination statement sponsors should use is available on the CDE’s civil rights web page at http://cde. ca.gov/ls/nu/cr/. Also, the district did not have its most recent civil rights annual training required for staff that interact with program applicants and participants. The district conducted the training on May 31, 2019 and submitted documentation to the CDE to satisfy this requirement. Train- ing of department staff is addressed in more detail in the Professional Development section of this report. • The district’s meal counting and claiming procedure requirements were also found to be out of compliance. The district used a 95% attendance factor to edit check its meal counts without backup documentation to support the percentage. The national attendance factor average is 93.8%. The district is required to compare daily meal counts of free, reduced-price and paid meals against students eligible in each category, times an atten- dance factor. Districts may use their actual attendance factor instead of the national aver- age; however, attendance records are required to support the option. The state provided technical assistance in several other areas of the program that did not reach the level of a review finding. Ongoing staff training needs to be provided to ensure all food service staff understand and follow program regulations. Issues like those listed above would normally be discovered by food service management staff when conducting regular reviews of the program, thus ensuring that program compliance becomes a habit for staff members, so the district is always prepared for state reviews. Recommendations The district should: 1. Ensure that food service management is knowledgeable about program requirements and all aspects of the administrative review process, and trains staff on program requirements. 2. Ensure that all technical assistance guidance items are implemented to ensure ongoing compliance. 3. Ensure that food service management routinely monitors the program for compliance. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 16 Findings and Recommendations Purchasing and Inventory Purchasing and Inventory Purchasing Purchasing is an extremely important function in a food service program. Goals of purchasing should be to acquire the best price for needed items and to utilize vendors that provide quality service. The best way to accomplish these goals is through implementation of best practices and procedures for bids and quotes. Some districts have found it advantageous to form food service purchasing cooperatives with other dis- tricts to increase purchasing power and decrease the administrative burden of duplicated paperwork. Education Code Section 38083 allows districts to purchase perishable foodstuffs and seasonal commod- ities needed to operate cafeterias in accordance with the rules and regulations adopted by the governing board, as long as they do not conflict with any provisions of the Education Code. The district does not publish bids or request proposals for any of the products used in the food service program. Sysco of Central California is the food vendor that provides most of the food and supplies used in the program, including fresh fruits and vegetables. Producers Dairy is the district’s vendor for all dairy prod- ucts. Although the Education Code and district regulations allow for these items to be purchased without a bid, districts often find they can obtain the best price and service by issuing a bid or obtaining quotes. Another purchasing option for the district is to piggyback on the bids of other districts. Piggybacking is au- thorized in Public Contract Code Section 20118 and allows school districts to make purchases using the bid awarded by another public agency or corporation if the board determines it is in the district’s best interest. According to the financial records provided to FCMAT by the district, in fiscal year 2018-19 the district had $18,000 in entitlement funds to purchase USDA products and commodity processed food items. The dis- trict utilized $13,751 of that amount. In the current school year, the district has projected the same amount in entitlement funds available. The total amount used will not be known until the end of the school year. A school district’s entitlement is the dollar value of USDA foods each recipient agency is eligible to receive. An agency’s donated food entitlement is calculated by the number of reimbursable lunches served during the previous fiscal year multiplied by the current per-meal value. The per-meal value for USDA foods is es- tablished annually in July by the United States Congress. For school year 2019-20 the per-meal value was .3625 cents. Therefore, it is advantageous for districts to serve as many reimbursable lunches to students as possible. Additional information and guidance on food commodity processing and use of entitlement funds can be found at https:www.cde.ca.gov/ls/nu/fd/offeringinfo.asp. Inventory The function of inventory is to help a food service department identify the items in stock and their costs and determine how best to manage and control them. Some districts complete a periodic physical inven- tory monthly, which helps to control monthly food and supply costs, compare their costs to revenue, and produce a profit and loss statement to determine if financial goals have been met. Other districts operate a perpetual or continuous inventory system that helps to more readily monitor financial goals, determine replenishment needs, and identify losses due to product failure or theft. This type of inventory system typi- cally involves the use of a computerized inventory software to increase accuracy and efficiency. The FCMAT study team requested inventory records from the district, but none were provided. Therefore, FCMAT has reviewed this area as if these documents were not recorded or created. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 17 Findings and Recommendations Purchasing and Inventory Recommendations The district should: 1. Consider membership in a local school food service purchasing cooperative group to increase purchasing power. 2. Solicit bids or proposals from vendors to obtain best pricing. 3. Consider piggybacking with other larger districts to make certain the district is securing the best pricing available for the food service program. 4. Ensure that the Food Services Department uses its entire annual USDA commodities entitlement. 5. Ensure that the food service manager develops an inventory tracking system for all products used in the Food Services Department, to include pricing information for each item. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 18 Findings and Recommendations Facilities and Equipment Facilities and Equipment During fieldwork, the FCMAT study team visited the district’s food preparation kitchen and storage areas for dry and perishable foods. FCMAT observed the condition and functioning of the kitchen, serving area and multipurpose room. The cleanliness of the facilities was satisfactory. For the size of the district, the kitchen is adequate with enough workspace and enough space for dry and perishable foods. The cafeteria eating area is large and can accommodate many students. The serving line area is well designed for easy student access and an organized and efficient flow. The main entrée is offered on the serving line, and the fruits and vegetables are served at a salad bar located between the serving line and the point of service. Storage space is adequate. FCMAT learned that the district will be remodeling the dry storage area by re- moving the wood shelving and replacing with food grade storage racks. The walk-in freezer is large enough for the facility. Reach-in refrigerator and freezer storage units are also adequate. The replacement of the outdated kitchen equipment could be a significant improvement. Except for a food holding cabinet, all the equipment has been in place since the 2001-02 school year. The district recently applied for $55,000 in USDA equipment replacement grant funding to replace most of the kitchen equip- ment, but it was not granted. These grants fund capital equipment and priority is given to districts with high free and reduced-price meal eligibility. The CDE also offers expansion grants for districts that plan to expand breakfast. Additional information can be found at http://cde.ca.gov/fg/fo/r9/sbpsfsp1920instructions.asp. During FCMAT’s visit, two equipment items were found to require immediate replacement. The dou- ble-stack oven has a hole in the bottom section and the salad bar has a crack in the sneeze guard. Accord- ing to district staff, quotes were being requested to replace both items. Recommendations The district should: 1. Carefully assess the equipment needs of the Food Services Department and continue to pursue equipment replacement grant funds to replace outdated kitchen equipment. 2. Immediately replace the double-stack oven and salad bar. 3. Apply for breakfast expansion grant funding if the district plans to implement any of the breakfast meal service options. Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 19 Appendix Study Agreement Appendix Study Agreement Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 20 APPENDIX Study Agreement Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 21 APPENDIX Study Agreement Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 22 APPENDIX Study Agreement Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 23 APPENDIX Study Agreement Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 24 APPENDIX Study Agreement Fiscal Crisis and Management Assistance Team Curtis Creek Elementary School District 25