OPERATIONS
This chapter reviews the Christoval Independent School District's (CISD) operations duties and includes the following sections:
- A. Food Services
- B. Facilities Use and Management
- C. Transportation
- D. Computers and Technology
FOOD SERVICES
The mission of a school district's Food Services program is to provide an appealing and nutritionally-sound breakfast and lunch to students and to operate on a cost-recovery basis. Several success factors can be used to evaluate the efficiency and effectiveness of a school district's Food Services operation. These include a high ratio of meals per labor hour (MPLH), minimization of food cost and waste, maximum participation in breakfast and lunch programs, high nutritional value and variety of meals, minimal wait times for student service and financial self-sufficiency.
Inefficient food services management and cost control can impair student performance by reducing funds available for the classroom while reducing concentration and achievement due to inadequate nutrition. A well-managed and proactive Food Services Department is critical to the health and academic success of all students.
The National School Lunch Program was authorized in 1946 by the U.S. Congress to safeguard the health and well being of the nation's school children and to encourage the consumption of domestic agricultural products. The Food Services program is funded through a combination of federal subsidies for students from low-income families and the personal contribution of students who are able to pay. The federal government also provides schools with surplus food products through the U.S. Department of Agriculture.
The Texas School Food Services Association (TSFSA) has identified 10 standards of excellence for evaluating TSFSA programs. TSFSA states that effective programs should:
- Identify and meet current and future needs through organization, planning, direction and control;
- Maintain financial accountability through established procedures;
- Meet the nutritional needs of students and promote the development of sound nutritional practices;
- Ensure that procurement practices meet established standards;
- Provide appetizing, nutritious meals through effective, efficient systems management;
- Maintain a safe and sanitary environment;
- Encourage student participation in Food Services programs;
- Provide an environment that enhances employee productivity, growth, development and morale;
- Promote a positive image to the public; and
- Measure success in fulfilling regulatory requirements.
CISD is building a cafetorium that is scheduled to be ready for use at the beginning of the 2001-02 school year. Currently, the only food preparation facilities are in the elementary school. As a result, high school students had to be bused to the elementary school for lunch during 2000-01. Additionally, the district contracted with several local food vendors to come in once a week to provide the high school with food through the snack bar set up outside the gymnasium. With the opening of the new cafetorium in the fall, it will no longer be necessary to provide these stopgap measures.
CISD's Food Services Department consists of a manager, three full-time employees and one part-time employee. The Food Services manager reports directly to the superintendent. Given the size of the district, all Food Services employees cook, heat, chill and serve pre-prepared and made-from-scratch foods. These employees also perform stocking, dishwashing and kitchen clean-up duties at various times during the day. Aides collect the money at the high school and the elementary secretary collects the money at the elementary school.
Exhibit 4-1 summarizes the daily staffing patterns for the district
Exhibit 4-1 Source: CISD Food Services Department.
CISD Food Services Department
Staffing Patterns
2000-01
Position Hours Worked per Day Food Services Manager 8 Food Services Worker 8 Food Services Worker 8 Food Services Worker 8 Food Services Worker 5 Total 37 The district is planning to add an additional full-time Food Services employee when the new school year begins. This will bring the total number of hours worked per day in the Food Services Department to 45.
The district participates in the Free and Reduced-price National School Lunch program. At CISD, 24.8 percent of the students are economically disadvantaged. These students qualify for either free or reduced-price breakfasts and lunches. Of the 24.8 percent of students who are eligible for free and reduced-price lunches, 68.3 percent qualify for free lunches and 31.7 percent qualify for the reduced lunch prices. The federal government reimburses the district based on the degree of participation in the program by eligible students. Exhibit 4-2 summarizes the reimbursement rates CISD receives for this program.
Exhibit 4-2 Source: TEA.
Free & Reduced-price Lunch Program
Reimbursement Rates
2000-01
Meal Type Reimbursement Rate Reimbursable Lunch Full Price: $0.19
Reduced Price: $1.62
Free: $2.02Reimbursable Breakfast Full Price: $0.21
Reduced-Price: $0.82
Free: $1.12Reduced Price Meals Maximum Available Lunch: $0.40
Breakfast $0.30FINDING
CISD's Food Services program has been operating at a deficit for many years. Exhibit 4-3 summarizes the Food Services special revenue funds as reported in the 1997-98 through 1999-2000 audited financial statements.
Exhibit 4-3 Source: CISD Audited Financial Statements 1997-98 through 1999-2000.
Audited Financial Statements
Food Services Special Fund
1997-98 through 1999-2000
School Year Total Revenue Total Expenditures Fund Balance 1997-98 $85,432 $128,699 ($43,267) 1998-99 $91,249 $151,985 ($60,736) 1999-2000 $91,610 $149,208 ($57,598) The district has budgeted Food Services to operate at a deficit again during the 2000-01 school year. Exhibit 4-4 presents the budgeted expenses by category and percent of total revenue and expenditures.
Exhibit 4-4 Source: CISD 2000-2001 Budget.
Budgeted Food Services Revenue and Expenditures
2000-01
Revenues Category Budget Percent Local Revenue $45,000 53.6% State Matching $3,000 3.5% Federal Revenue $36,000 42.9% Total $84,000 100.0% Expenditures Category Budget Percent Payroll $57,350 43.7% Purchased and Contracted Services $1,000 0.75% Supplies and Materials $72,000 54.8% Other Operating Expenses $1,000 0.75% Capital Outlay $0 0% Total $131,350 100.0% Difference ($47,350) The number of meal equivalents served per day is calculated using a standard industry methodology. Each lunch served equals one meal equivalent. Two breakfasts equal one meal equivalent. The average daily meal equivalents served by the CISD Food Services Department is 190 as shown in Exhibit 4-5.
Exhibit 4-5 Source: CISD Mealtime Operations Summary Reports and Meal Participation Report.
Average Meal Equivalents
2000 - 01
Program Daily Meals
ServedDaily Meal
EquivalentsBreakfast 62 31 Lunch 159 159 Total Daily Meals 221 190 CISD employees prepare food from raw and frozen ingredients on the premises and wash dishes. Exhibit 4-6 summarizes the guidelines that the review team used to evaluate the staffing levels at CISD.
Exhibit 4-6 Source: Managing Child Nutrition Programs: Leadership for
Recommended Meals Per Labor Hour (MPLH)
Number
of Meal
EquivalentsMeals
Per
Labor HourUp to 100 8/10 101-150 9/11 151-250 10-11/12 251-300 13/15 301-400 14/16 401-500 14/17 501-600 15/17 601-700 16/18 701-800 17/19 801-900 18/20 >901 19/21
Excellence by Josephine Martin and Martha T. Conklin.The district's current level of staffing, 37 hours worked per day, translates to 5.1 meals per labor hour -- far below the recommended efficiency level. With the opening of the new cafetorium in September 2001, the district has budgeted to hire an additional manager. School Food Services Management suggests that a district the size of Christoval should strive to prepare 12 to 15 meals per labor hour. At the current daily staffing level of 37 hours, the optimal number of meal equivalents served each day should range between 444 and 555. The additional full-time worker would raise that level to between 540 and 675.
Recommendation 24:
Establish a meals per labor hour standard and staff accordingly.
The district should strive to achieve a 12 meals per labor hour standard. Although an additional manager may be necessary to run both cafeterias, the district does not need six Food Services employees. Based on the district's current needs, the Food Services Department is over-staffed by at least one full-time person. However, with the new cafetorium, the district should expect to see some increase in participation from the high school students. The district should use four full-time Food Services workers, two at each cafeteria, and have a part-time staff member float between the two campuses as needed.
IMPLEMENTATION STRATEGIES AND TIMELINE
1. The superintendent and cafeteria managers set a target MPLH of 12. September 2001 2. The superintendent restructures the Food Services Department to four full-time and one part-time staff member. September 2001 3. The cafeteria managers prepare monthly status reports for the superintendent. October 2001 and Ongoing FISCAL IMPACT
By reducing the staffing level by one full-time worker, the district would realize a reduction in labor costs of $13,447 per year ($6.50 x 8 x 180 days) + ($1,853 for health insurance) + ($9,360 x 23.87 percent benefit rate).
Recommendation 2001-02 2002-03 2003-04 2004-05 2005-06 Establish a meals per labor hour standard and staff accordingly. $13,447 $13,447 $13,447 $13,447 $13,447 FINDING
The district's student meal participation rates are extremely low. The campuses are closed, meaning students cannot leave campuses to buy meals at fast food restaurants, a fact that should result in higher participation rates. Exhibit 4-7 compares the breakfast and lunch participation rates for the past three years.
Exhibit 4-7 Source: CISD Mealtime Meal Participation Report.
CISD
Average National School Breakfast and Lunch Participation
1998-99 through 2000-01
1998-99 1999-2000 2000-01 Lunch Breakfast Lunch Breakfast Lunch Breakfast 49.1% 15.6% 51.9% 19.1% 47.0% 18.1% The district's participation in the breakfast program has dropped 5.2 percent since 1999-2000. The lunch participation rate fell 9.4 percent over the same period. Given that a 70-75 percent participation rate is not unusual for closed campuses, the low participation rates at CISD represent a significant issue for the district.
San Angelo ISD has an extremely successful food services program that continually operates profitably. San Angelo ISD provides a choice of two lunch entrees each school day at every campus. Similar ingredients are used so that the district can optimize its commodities use. For example, the menu choices one day might include tacos and sloppy joes. Both recipes use ground beef and are similar to prepare. The incremental food costs of providing this choice has been less than 2 percent in San Angelo.
Unless CISD raises its participation rates, it will continue to operate at a deficit and require general funds to cover its shortfall. Students will eat in the cafeterias if the food looks and tastes good, it is easy and convenient to get food, the price is right and the rest of the kids think it is cool.
Price may or may not be a major concern because most school lunch prices are extremely low compared to the cost of fast food items. But, if the food is good and it is easy to get, price can be the determining factor. Students interviewed in the Corpus Christi ISD told TSPR that even though their campus was open, it was easier and cheaper to eat at school. They said the food was good, and they got more of it at school.
Additionally, kids need to think it is cool to eat at school. Influencing student opinion is a delicate task that has to begin with asking students what they like and don't like about the cafeteria. Quarterly student surveys, student advisory groups, taste tests and using student mystery shoppers are techniques used by the more progressive districts to identify ways to appeal to students.
Sponsoring special theme days where special guests, special foods or varieties of foods or prizes are offered in a non-traditional setting are also good ways to increase student interest. Before introducing a new menu item, some districts test the menu with a group of select students to get their reactions and suggestions for improvement.
Water Valley ISD has taken innovative steps to encourage participation in its breakfast program. Each morning, the superintendent delivers grab-and-go breakfasts consisting of breakfast burritos to the high school. The review team was told that this is an extremely popular program that sells out each morning. It gives the students an opportunity to develop a closer relationship with the superintendent. This is an effective program that encourages student interaction with district administration, which is one advantage of small districts.
Recommendation 25:
Encourage increased meal participation.
Unless the district raises its participation rates, it will continue to operate at a deficit and require general funds to cover its shortfall. One way to accomplish this is by incorporating the choice of two daily lunch entrees into the menu offered to CISD students. Another might be the implementation of the grab-and-go breakfasts at all campus levels.
To determine the best strategies for increasing participation, the district might consider organizing a committee of students and staff to research various approaches, menus and serving options that might encourage participation. It should not be difficult for the district to strive for raising its participation in the breakfast and lunch programs. As participation increases, so will federal reimbursement funds.
IMPLEMENTATION STRATEGIES AND TIMELINE
1. The Food Services staff conducts a brainstorming session to determine what kind of programs it could operate over the next school year that would increase participation. October 2001 2. The Food Services manager develops a four-week menu cycle to include two lunch entrée choices each day using the San Angelo ISD Food Services Department as a model. November 2001 3. The Food Services manager implements a grab-and-go breakfast burrito program for all students. October 2001 4. The principal distributes notices to parents and students regarding the new meal program options. October 2001 5. The principal announces the new breakfast program options to all students and encourages participation. October 2001 FISCAL IMPACT
Today the district is serving an average of 190 meal equivalents, 31 breakfasts and 159 lunches. Increasing the breakfast and lunch program participation to 51 breakfasts and 243 lunches, or 294 meal equivalents, would result in 20 additional breakfasts and 84 additional lunches each day.
The district has adequate staff to meet the increased number of meal equivalents. The only additional cost to the district will be the incremental food costs.
Each breakfast is estimated to result in an additional 70 cents in revenues based on a rough average of elementary and high school full-priced meal rates and federal reimbursement rates. Lunches are estimated at $1.30 using the same process.
First year increases are reduced by one half to allow for full implementation.
Recommendation 2001-02 2002-03 2003-04 2004-05 2005-06 Encourage increased meal participation. $5,012 $10,024 $10,024 $10,024 $10,024 FINDING
The district does not regularly analyze meal prices to determine if they are covering costs. Exhibit 4-8 presents the current meal prices charged by the district.
Exhibit 4-8 Source: CISD Food Services Department.
CISD Meal Prices
2000-01
Breakfast Lunch - Elementary Lunch - High School $0.50 $1.00 $1.25 Exhibit 4-9 summarizes the average meal costs.
Exhibit 4-9 Source: CISD Food Services Department, CISD 2000-01 Budget and CISD Mealtime Meal Participation Report.
CISD Average Meal Costs
2000-01
Average Daily Number of Meals Number of Serving Days Annual Average Number of Meals 221 180 39,780 Annual Labor Costs
(Budgeted)Annual Food Costs
(Budgeted)Total Food and Labor Costs (Budgeted) $57,350 $72,000 $129,350 Cost Per Meal $3.25 Federal Reimbursement Regular-Price Breakfast Federal Reimbursement Reduced-Price Breakfast Federal Reimbursement Free Breakfast $0.16 $0.06 $0.19 Federal Reimbursement Regular-Price Lunch Federal Reimbursement Reduced-Price Lunch Federal Reimbursement Free Lunch $0.14 $0.13 $0.34 Adjusted Cost Per Meal $2.23 CISD's budgeted food and labor costs totaled $129,350 in 2000-01. The district served an average of 221 meals per day, which equates to 39,780 meals annually. The district's budgeted food and labor costs alone bring the total costs per meal to $3.25. After adjusting for the federal reimbursement dollars from the National School Lunch Program, the cost per meal is $2.23. This per meal cost does not include overhead costs such as utilities, maintenance and other such costs, which the district pays.
At the current pricing levels, the district would have to prepare 71.5 percent more meals per day to break even.
Recommendation 26:
Regularly assess meal prices to set prices at cost-recovery level.
While the district should strive to keep meal prices as low as possible, it cannot continue to finance the deficit from the general fund, which takes money away from the educational program. If the district can spread its costs over a higher number of meals served with the increased participation and raise the lunch prices, it will no longer require the additional funding. The participation rates in the breakfast program always are substantially lower than the lunch program. Therefore, it is recommended that the breakfast price remains the same and the district increase the lunch prices for both the elementary and secondary campuses. Exhibit 4-10 lists the recommended new lunch prices.
Exhibit 4-10 Source: Gibson Consulting Group, Inc.
Recommended Lunch Pricing
Lunch - Elementary Lunch - Middle/High School $1.25 $1.50 These recommended meal prices are comparable to other school districts in Tom Green County.
IMPLEMENTATION STRATEGIES AND TIMELINE
1. The Food Services manager assesses actual cost per meal served and reports to the Superintendent. October 2001 2. The superintendent requests that the board adjusts its school lunch prices. November 2001 3. The board approves the new pricing. November 2001 FISCAL IMPACT
The increase in pricing will go directly to the district's bottom line by increasing the local revenue. There will be no change in the amount of federal funds received as the government sets the maximum reimbursement rates.
The increase from raising the meal prices is $6,028 ($33,692 - $27,664 (2000-01 lunch revenue)) annually.
Recommendation 2001-02 2002-03 2003-04 2004-05 2005-06 Regularly asses meal prices to set prices at cost-recovery level. $6,028 $6,028 $6,028 $6,028 $6,028 FINDING
In the 2000-01 CISD budget, food costs comprised 85.7 percent of budgeted revenues. CISD does all of its own purchasing of food and supplies, and does not participate in any purchasing consortiums.
During interviews with the San Angelo ISD director of Food Services, the review team found that San Angelo is paying a substantially lower unit price than the smaller districts in Tom Green County. The example given was for green beans that San Angelo ISD can purchase at 30 cents whereas the smaller districts are paying 37 cents. This is a 23.3 percent difference. The San Angelo ISD director of Food Services stated that the district would be interested in entering into and managing a cooperative purchasing agreement with the smaller districts in the county if some arrangement could be made to increase the storage facilities in the San Angelo district.
Recommendation 27:
Enter into a countywide food-purchasing cooperative.
IMPLEMENTATION STRATEGIES AND TIMELINE
1. The Food Services managers of all Tom Green County school districts meet to discuss forming a purchasing cooperative. October 2001 2. A committee is formed to set goals and objectives of the cooperative. November 2001 3. The committee develops recommendations. January 2002 4. District superintendents present the committee's recommendations to their respective boards. January 2002 5. The board approves the formation of the cooperative. January 2002 6. The county enters into an interlocal food purchase agreement. February 2002 7. The committee sends out for food bids. March 2002 FISCAL IMPACT
If the district can reduce its total food costs ($72,000) by at least 15 percent, it would save $10,800, based on the 2000-01 budget.
Recommendation 2001-02 2002-03 2003-04 2004-05 2005-06 Enter into countywide food-purchasing cooperative. $10,800 $10,800 $10,800 $10,800 $10,800 FINDING
The record keeping for the free and reduce-price lunch program is manual and difficult to perform. During each meal period, the district gives each student a card that allows the student to purchase a lunch. Students buy lunches either by purchasing cards that day or using a card's prepaid balance, which the district tries to follow accurately. In some instances, the district gives credit to the student if he or she no longer has any money in the prepaid balance or does not have actual cash that day. Students pay these charges at another time. Exhibit 4-11 is an example of a portion of one student's record.
Exhibit 4-11 Source: CISD Food Services Manager.
Student Payment Record
Name of Student:
Month 1 2 3 4 5 6 7 8 9 10 August X X X X X X X X X X September A X X A P A A A X X October X P A A A C X X C A
Note: X= No school; C = Credit; A = On account; P = Cash paymentThe current manual system is difficult to manage and track to ensure that the district actually is collecting the money appropriately. District employees voiced concern that a number of students eat without paying for their food. It also is difficult to keep proper records of the district's participation rates with such a manually-intensive system.
Water Valley ISD implemented a point-of-sale (POS) system in its Food Services Department. This software provides the following benefits:
- Offers convenient pre-payment options;
- Maintains confidentiality for students who receive free and reduced-price meals;
- Provides a clear audit trail;
- Reduces processing time to sell a meal in less than two seconds;
- Reduces labor hours needed with automated reports; and
- Reduces the possibility for double counting meal sales.
The software is designed to automate sales activity, meal and eligibility counts and state claim form preparation. It processes cafeteria sales quickly, tracks all meals and items sold and generates a variety of reports. It is a Windows-based software that meets the district's needs for a reasonable cost.
Water Valley ISD reported significant improvements in maintaining its cash receipts. The system has eliminated missing money and the practice of students not paying the proper amount for their food as it holds student-specific data. The Water Valley Food Services manager told the review team that the system probably has eliminated two labor hours a day with its reporting feature.
POS systems have increased student participation. With the inherent confidentiality of the system, it does not differentiate students who are eligible for the free and reduced-price meal program from students who pay regular price. Each student has the same cards. Increased participation brings increased federal reimbursement, which is additional cash flow for the district.
Recommendation 28:
Purchase point-of-sale software for Food Services.
The system will provide better record keeping and ensure that the district recognizes all eligible students and receives the appropriate levels of federal reimbursement.
IMPLEMENTATION STRATEGIES AND TIMELINE
1. The superintendent submits a request to purchase a POS system to the board for approval. September 2001 2. The district purchases the system and the hardware required to support the system. October 2001 3. The Food Services Department trains employees to use the new system and begins the transition to its use. November - December 2001 4. The district fully implements the system. January 2002 FISCAL IMPACT
CISD will incur a one-time cost of $2,389 to implement this recommendation (Exhibit 4-12).
Exhibit 4-12 Source: WVISD, http:accessories.us.dell.com.
Estimated Cost of Point of Sale System
Purchase Item Cost Software Cost $900 Pentium III Processor $649 Touch Screen Monitor $539 HP DeskJet 640C $155 Video Camera $99 Numeric Keypad $47 Total Cost of System $2,389
Recommendation 2001-02 2002-03 2003-04 2004-05 2005-06 Purchase Point of Sale software for Food Services. ($2,389) $0 $0 $0 $0
