Page 24 - The Edge - Summer 2021

Help Is on the Way for Financially Strapped Food Service

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“All eligible schools will By May 10, 2021, state agencies were required to

automatically receive payments. submit an implementation plan to the Food and
Nutrition Services, including a projected timeline
It will show up in your account.” for disbursement, and how they will ensure accuracy
of payment calculations and notify operators of
payments.
Schools were individually wrapping meals for safety,
and equipment had to be purchased to provide curbside In July of this year, ADE will begin issuing payments,
service. “They all cost money and revenue was with the intent to have all funds dispersed by July 31.
greatly declining,” she said. “It was quite a difficult Krug said.
situation for school nutrition programs. Throughout
this exceptionally challenging time for everybody, ADE is responsible for identifying eligible operators
program operators experienced widespread and and calculating payments for each operator by
significant gaps in funding.” reimbursement month; disburse payments to eligible
operators per the implementation plan submitted to the
In many cases, schools were forced to dip into their federal agency; and maintain proper documentation
nest egg. She explained that USDA allows schools to and effective oversight of payments and activities
keep up to three months of funding in their account. under the reimbursement program.
Schools were able to draw from their savings or
from other sources, at the same time cutting or even Schools are eligible for this reimbursement program if
suspending operations. they continued with National School Lunch Program
or the Summer Food Service Program in school year
Krug displayed comparisons from March 2019 to 2020-2021, and filed reimbursement claims for any
March 2020, showing a significant decline in the of the months of September through December 2020,
number of meals served, and then said: Krug explained. That means a vast majority of the
schools are eligible, except perhaps for some smaller
“Some relief is on the way. The Consolidated districts, she said.
Appropriations Act of 2021 allows USDA Food and
Nutrition Services to offer additional funds to state Regarding the application process for schools, there
agencies administering the National School Lunch is none, Krug said. “No action is needed to receive
and School Breakfast Programs to provide local the funding,” she said. “All eligible schools will
program operators with additional reimbursements automatically receive payments. It will show up in
for emergency operating costs they incurred during your account. It will be disbursed in a lump sum.”
the public health emergency. These additional funds
will be provided through a temporary reimbursement Payments must be deposited into the nonprofit school
program intended to address funding shortfalls during food service account and will be subject to the same
the early months of the pandemic – March to June allowable cost rules as other reimbursement funds,
2020.” like any other child nutrition disbursements.

In implementing the funding program, state agencies There is a similar reimbursement program for
such as ADE were given a timeline. By February 25, operators of the Child and Adult Care Food Program
2021, they were required to submit an application for child care centers, at-risk after school programs,
to Food and Nutrition Services establishing their emergency shelters and adult day care centers.
intent to participate in the reimbursement program
and describing how they will calculate and disburse Jessica Krug can be reached at: Jessica.Krug@azed.gov and
funding. (602) 542-8745

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24 THE EDGE SUMMER 2021