Product Values and Fees

For School Food Authorities (SFAs) receiving USDA foods through the National School Lunch Program (NSLP), below is accounting and financial aspects related to ordering and receiving of USDA foods. On average, USDA Foods make up 15 to 20 percent of the products served, translating to significant savings on school meals budgets. For budgeting, SFAs may find “the 20% rule” useful - on average, entitlement should absorb 20% of the SFA’s food budget. SFAs do not pay for the value of the donated USDA Foods ordered. It is important that SFAs understand the value and fees associated with USDA Foods and compare costs to commercial options to receive the best value from USDA Foods.

SFAs are given an annual entitlement value balance (in dollars) to spend on USDA Foods. The amount of donated USDA Foods that SFAs can order each year is based on the number of reimbursable lunches served in the previous school year.

 

USDA releases initial product values in advance of the annual order. In March or April of the school year, after USDA has completed most purchases of USDA Foods, DPI calculates the actual average product values based on purchases for end of year bookkeeping and program evaluation.

Depending on the product and the type of delivery, USDA Foods fees may include administrative, processing, storage, and delivery fees. SFA’s fees are automatically deducted from the NSLP Claim as “Commodity Charges Recovered” in the Wisconsin Child Nutrition Online Services system.