School Nutrition Programs Compliance Handbook
CHAPTER 14-SPECIAL MILK PROGRAM
School Food Authorities (SFA) participating in the Special Milk Program (SMP) receive federal funding to encourage the consumption of milk by school-age children. If all grades have access to the National School Lunch Program, your agency is not eligible to participate in the Special Milk Program.
Participation
According to federal regulation [7 CFR Part 215.7 (a)], any nonprofit school or nonprofit Residential Child Care Institution (RCCI) can participate in the Special Milk Program (SMP) upon approval by the authorized state agency provided it does not participate in other USDA Child Nutrition Programs including:
· the National School Lunch Program (NSLP),
· School Breakfast Program (SBP),
· Child and Adult Care Food Program (CACFP)
· Summer Food Service Program (SFSP).
Schools that participate in such meal service programs may participate in the Special Milk Program upon approval, but only for the children attending split-session kindergarten or for pre-primary students who do not have access to any other meal service authorized under the Child Nutrition or National School Lunch Acts.
Milk Options
Federal regulation [7 CFR Part 215.7a] establishes the requirements for milk served in the Special Milk Program (SMP) by participating School Food Authorities (SFA). Table 1 contains the milk requirements for SFAs participating in the SMP [as required by 7 CFR Part 215.7a].
Table 1: Fluid Milk Requirements for the Special Milk Program |
|
Age Group |
Fluid Milk Requirement |
Children 1 year old |
Must be served whole milk [per federal regulation 7 CFR Part 215.7a (a) (1)]. |
Children 2 through 5 years old |
Must be served either unflavored low-fat (1%) milk or fat free (skim) milk [as required by federal regulation 7 CFR Part 215.7a (a) (2)]. |
Children 6 years and older |
Must be served low-fat (1% or less) or fat free ) skim milk. Milk may be flavored or unflavored. [as required by federal regulation 7 CFR Part 215.7a (a) (3)]. |
Fluid Milk Substitutes
School Food Authorities participating in the Special Milk Program (SMP) may offer fluid milk substitutions. These substitutions must be based on a written request from one of the following [per federal regulation 7 CFR Part 215.7a (b) (1)]:
· The child’s parent or guardian
· A state licensed health care professional (authorized to write prescriptions in the state of Oklahoma)
· A registered dietitian licensed by the state of Oklahoma
If the SFA chooses to offer fluid milk substitutions for non-disability reasons, then the milk must be compliant with the requirements listed in table 2 [as required by federal regulation 7 CFR Part 210.7a (b) (2)].
Table 2: Nutrition Requirements for Fluid Milk Substitutes |
|
Nutrient |
Per Cup (8 fl. oz.) |
Calcium |
276 mg. |
Protein |
8 g |
Vitamin A |
150 mcg. Retinol Activity Equivalents (RAE) |
Vitamin D |
2.5 mcg. |
Magnesium |
24 mg. |
Phosphorous |
222 mg. |
Potassium |
349 mg. |
Riboflavin |
0.44 mg. |
Vitamin B-12 |
1.1 mcg. |
The additional expenses incurred due to providing fluid milk substitutions exceeding the reimbursement rate must be paid by the SFA [per federal regulation 7 CFR Part 215.7a (b) (3)].
Pricing and Non-Pricing Programs
School Food Authorities (SFA) choose to serve milk under a pricing or a non-pricing program. The amount of reimbursement provided by USDA depends upon the option chosen. The information below provides a comparison of the three available program options and eligibility guidance.
Nonpricing
The SFA provides milk to all children at no charge, or the price of milk is included in the tuition so that all children automatically receive milk. SFAs of nonpricing programs are not required to collect Household Applications as determination and verification of a child’s eligibility is not necessary. Reimbursement is claimed at the pricing rate. Sponsors will implement counting and claiming procedures to capture the number of milks served to eligible children. Schools must track the number of milks served to adults. Milk served to adults cannot be claimed for reimbursement.
Pricing Program
The School Food Authority (SFA) charges for milk. The SFA will implement counting and claiming procedures to capture the number of milks served to eligible children. Schools cannot claim milk served to adults. Sponsors have two options when offering a pricing program:
1. Pricing Without Free Milk:
Under this option, sponsors charge all students for milk regardless of income eligibility. SFAs do not collect household applications, and all students are charged the same amount for milk. The charge for milk is not included in tuition.
2. Pricing With Free Milk:
The SFA provides free milk to children who qualify in accordance with the family size and income eligibility guidelines established annually by USDA. Households must apply for free milk or provide a direct certification letter.
Determining Free-Eligible Students
For School Food Authorities (SFA) conducting a pricing program with free option, each year, SFAs will notify families about the milk program and provide applications for students to apply for free milk. Household applications must be approved using the current fiscal year income guidelines as issued by USDA. In addition, SFAs must send out a public notice about the Special Milk Program (SMP) and procedures to apply for free milk. Table 3 contains the requirements for the required public notice [as required by federal regulations 7 CFR Part 215.13a (e) and (f)].
Table 3: Public Notice Requirements |
To meet the requirements for public notification, the SFA must [as required by federal regulations 7 CFR Part 215.13a (e) and (f)]: · Send out public notification to the local media about the Special Milk Program (see Procedures for Civil Rights). · Send a letter and an application to all students notifying them of the procedures to apply for free milk (see student eligibility procedures for School Nutrition Programs). · Inform parents of the verification procedures. · Inform households of the appeal process, if an application is denied. · Include the USDA nondiscrimination statement for Child Nutrition Programs on all program material sent to the public and to the households of students participating in the Special Milk Program (see Procedures for Civil Rights). |
SFAs will review household information submitted on the application prior to approving an application for free milk. Families receiving Supplemental Nutrition Assistance Program (SNAP) or Temporary Assistance for Needy Families (TANF) benefits can submit a letter of direct certification provided by OKDHS to receive free milk instead of completing an application for free milk. Foster children, in certain cases, may also be eligible for free milk. Documentation must be maintained on file with the sponsor to substantiate the child’s eligibility for free milk.
After approving an application, the SFA must notify the family of their benefits to receive free milk within 10 operating days from the receipt of the completed household application [as required by federal regulation 7 CFR Part 245.6 (c) (6) (i)]. If an application is denied, the family must be notified of the reason for denial and be provided information regarding the appeal process within 10 operating days from the receipt of the completed household application [as required by federal regulation 7 CFR Part 245.6 (c) (6) (i)].
Children who are not eligible to receive free milk will be charged a set price for the milk received. The SFA will claim reimbursement for the total number of milks served to children eligible for the free or pricing rate for milk.
For a pricing program with free-option, milk counts and cash/ticket collection procedures are required. School Food Authorities (SFA) must provide assurance that free milk is provided to needy children without physical segregation or overt identification.
In addition, the SFAs operating as a pricing program with free option must maintain a Benefit Issuance Document (BID) or a master list of students eligible for free milk containing the following information:
• child's name
• effective date of eligibility
• date of withdrawal from school or change in eligibility
• signature of determining official
RCCIs operating SMP as a pricing program with free option must maintain a master list that includes the above information, plus the child's income, entrance and exit dates. RCCIs must also include the child's birth date on the master list since there is an age restriction on eligibility. RCCIs must update the master list each time a child's eligibility status changes, the school should note the change and the date of the change.
Milk Pricing
School Food Authorities (SFA) must operate the Special Milk Program (SMP) on a nonprofit basis [as required by federal regulation 7 CFR Part 7 CFR Part 215.7 (d) (1)]. USDA Food Nutrition Services (FNS) does not specify how sponsors must demonstrate nonprofit status of the program. However, the total income should not exceed the school’s cost of administering the program. The reimbursement provided by the state agency for milk claimed should offset the cost of milk charged to students.
To price the milk the SFA operating the SMP should calculate the price of milk using the following calculation:
· Take the dairy cost (the price the SFA pays for the individual milk pint) plus administrative cost of $0.05 (optional, SFAs do not need to add this to the dairy cost, see below for a description of administrative costs)
· Take this number and subtract the current reimbursement rate (the current reimbursement rate is available at https://www.fns.usda.gov/school-meals/rates-reimbursement ) this will give the SFA the price to charge for milks.
The optional administrative cost of $0.05 is to cover costs of SMP administrative costs and supplies for the SMP such as napkins, refrigeration, and straws. Table 4 contains an example milk pricing in the SMP.
Table 4: Example of Milk Pricing |
|
Description |
Cost |
Dairy Cost (the price the SFA operating the SMP pays the vendor for the individual milk pints) |
$0.45 |
Administrative cost (optional) |
$0.05 |
Total |
$0.50 |
Subtract federal reimbursement rate (for example the reimbursement rate for School Year 2024-2025 was used) |
$0.2700 |
Total |
$0.23 |
Student price for milk (rounded up to the nearest cent) |
$0.23 |
*Make sure the current school year’s reimbursement rates are used when calculating the price of milk for the SMP.
If SFAs offer different types of milk, there must be a uniform price set for each type of milk charged to children eligible for the pricing rate. Children eligible for free milk must be able to select any type of milk offered.
RECORDKEEPING REQUIREMENTS
School Food Authorities (SFA) must keep records for their operation of the Special Milk Program (SMP). Table 5 contains the requirements for record retention.
Table 5: Record Retention Requirements |
|
Description |
Retention Requirement |
Milk rosters, edit check, and reimbursement claims |
These records must be retained for seven years after the last reimbursement has been received for the school year (as required by the state of Oklahoma). |
Household applications and other eligibility determination documentation (notification letters, benefit issuance document, etc.) |
These records must be retained for three years after the last reimbursement claim has been received for the school year [as required by federal regulation 7 CFR Part 215.7 (d)], except for audit findings have not been resolved. In the case of audit findings, the records must be retained until the resolution of the audit findings. |
Procurement records – records sufficient to detail the history of each procurement transaction [federal regulation 2 CFR Part 200.318 (i)]. |
These records must be retained for three years after the last reimbursement claim has been received for the school year. except for audit findings have not been resolved. In the case of audit findings, the records must be retained until the resolution of the audit findings. |
All other records for the SMP. |
SMP records are to be retained for three years after the last reimbursement claim has been received for the school year [as required by federal regulation 7 CFR Part 215.7 (d) (7)], except for audit findings have not been resolved. In the case of audit findings, the records must be retained until the resolution of the audit findings. |
Federal regulation [7 CFR Part 215.2] defines the school year as July 1st through June 30th. |
|
Documentation may be retained electronically. |
|
Non-pricing Programs
Non-pricing program School Food Authorities (SFA) must report the number of milks served using a milk roster or other tracking system. If milk used in cooking is claimed, records must support the claim. Milk served to adults must be tracked but cannot be claimed.
Pricing Programs
1. Pricing Programs without Free Milk
Pricing program SFAs must report the number of milks served using a milk roster or other tracking system. If milk used in cooking is claimed, records must support the claim. Milk served to adults must be tracked but cannot be claimed.
2. Pricing Programs with Free Milk, SFAs conducting a pricing program with the free- option are required to maintain eligibility determination documentation (household applications, direct certification letters, etc.) that certify children eligible for free milk. In addition, SFAs are required to keep the same records as the pricing program without the free-option.
Reimbursement
The state agency, OKDHS School Nutrition Programs (SNP) will reimburse School Food Authorities (SFA) for the number of half-pints of milk served each month to eligible children. There is no limit to the number of half-pints each eligible child can receive each day. Milk used in cooking may be claimed for reimbursement at the pricing rate (documentation must be kept). SFAs will receive reimbursement for milk at the pricing rate, or at the free rate. Only SFAs conducting a pricing program with the free option will be able to claim milk at the free rate for students eligible to receive free milk. USDA determines the reimbursement rates for each school year (July 1 through June 30).
Counting
SFAs must record a daily count of the number of half-pints of milk served in each eligibility category of free or paid. Milk served to adults is not reimbursable but must be recorded on the daily count of the number of half-pints of milk served. Milk counts must be taken at the point of service, when the child receives the milk. SFAs must elect a counting system that accurately reflects the number of milk half-pints served daily to free and paid price students and adults.
To be considered acceptable the milk count must be taken at the point of service. Acceptable counting systems at the point of service include student names checked off from a service roster or a tally sheet. Electronic counting systems are also acceptable.
Counting systems that are not acceptable include attendance counts, classroom counts, and all counts taken anywhere other than at the point of service.
The counting system cannot identify each child’s eligibility status (free or paid).
The Reimbursement Claim
SFAs are required to submit a monthly claim within 10 days after the month the claim is for. When the reporting deadline falls on a Saturday, Sunday or a state holiday, SFAs may submit the claim the next operational day. For example, the claim for September will be due on October 10th.
Reimbursement is based on the SFA’s participation in the milk program. Non-pricing programs and pricing programs without a free milk option will be reimbursed at a standard rate. SFAs that provide free milk to eligible children will receive reimbursement according to the number of milks served to free and paid eligible children.
1. Non-pricing Programs and Pricing Programs without Free Milk
The reimbursement payment will be calculated by multiplying the number of half-pints of milk served by the current fiscal year’s paid reimbursement rate.
2. Pricing Programs with Free Milk
The rate of reimbursement for free milk will be determined by multiplying the average cost per half-pint of milk by the total number of free half-pints served. The average cost per half-pints of milk is calculated based on the cost of the milk purchased during the month divided by the number of half-pints of milk purchased for the month. The reimbursement for the milk served to paid price eligible students is reimbursed at the federal paid rate.
Additional Program Requirements
Use of funds
School Food Authorities (SFA) participating in the Special Milk Program (SMP) must operate a nonprofit milk program. Federal funds made available under the Special Milk Program must be used to encourage the consumption of milk. Funds may be used for the purchase of milk and the administration of the Special Milk Program.
Procurement Code of Conduct
The SFA must maintain a written code or standard of conduct that governs the performance of its officers, employees, or agents who are engaged in the award and administration of procurement activities supported by program funds [as required by federal regulations 2 CFR Part 200.318 (c) (1) and (2)].
Procurement Plan
Each SFA must have a written procurement plan on file [as required by 2 CFR Part 200.318 (a)]. The plan must specify procurements procedures used by the SFA. All procedures must adhere to the federal requirements for procurement. A school may adopt state and local procedures only if the procedures comply with federal requirements set forth in federal regulations [7 CFR part 215.14a 210.21, 2 CFR Part 200, 2 CFR Part 400, and 2 CFR Part 415], as it applies to each entity. The procurement plan identifies the SFA’s purchasing periods for the goods, equipment, and services related to the School Nutrition Programs and the various methods procurement being practiced.
The procurement plan provides an explanation for using certain procurement methods to obtain an item used in the school food service program. The SFA can determine the extent of the plan. A new procurement plan does not need to be developed every year. However, a review of the approved plan will assist in maintaining compliance. A sample procurement plan is available email AFS.School.Nutrition.Programs@okdhs.org to request a copy.
For more information on procurement in school nutrition programs see chapter 7 Procurement.
Civil Rights
SFAs that participate in any USDA Child Nutrition Programs must be in compliance with federal Civil Rights requirements. SFAs must ensure that program benefits are made available and provided to all eligible individuals without discrimination.
To comply with the requirements, all sponsors shall:
1. Ensure that all forms of communication and printed program information are disseminated, especially the Letter to Parents for free milk, Household Applications and public releases include the nondiscrimination statement and complaint procedure:
In accordance with federal civil rights law and USDA civil rights regulations and policies, the USDA, its agencies, offices, employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.
Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the state or local agency that administers the program or contact USDA through the Telecommunications Relay Service at 711 (voice and TTY). Additionally, program information may be made available in languages other than English.
To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at How to File a Program Discrimination Complaint and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:
Mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Mail Stop 9410, Washington, D.C. 20250-9410;
Fax: (202) 690-7442; or
Email: program.intake@usda.gov.
This institution is an equal opportunity provider.
2. Inform parents/guardians of students, as well as local minority and grass roots organizations, of the availability of program benefits and services.
3. Display the nondiscrimination poster in a prominent place. The poster may be obtained from the School Nutrition Program unit at OKDHS.
4. Make available to the public, to participants and to potential participants, information about program requirements and the procedures for filing a complaint, in English and/or in appropriate translations for non-English-speaking persons.
5. Shall develop a method for collecting racial/ethnic data. Methods include determination of the information by an official through observation, personal knowledge or voluntary self-identification by an applicant on the Household Application form. As with all other records, information collected shall be kept on file for three (3) years. The Civil Rights Compliance Form must be completed each year by December 15, and retained on file for review.
Nondiscrimination practices for children eligible to receive free milk
SFAs participating in the Special Milk Program (SMP) must take the following steps to ensure compliance with nondiscrimination practices for children eligible to receive free milk:
1. The names of the children receiving free milk cannot be published, posted or
announced in any manner that identifies them as eligible for free milk.
- The school cannot overt the identification of children receiving free milk benefits by
the use of special tokens or tickets or by any other means;
- The school cannot require children to work for free milk;
- The children cannot be required to use a separate dining area, go through a separate serving line, enter the dining area through a separate entrance or consume their meals or milk at a different time;
- When more than one milk is offered which meets the requirements, the children eligible for free milk must have the same choice of milk that is available to those children who pay the full price for their milk.
And Justice for All Posters
The USDA And Justice for All posters are required to be posted in all areas where milks are served as part of the Special Milk Program (SMP) as required by USDA Food and Nutrition Service Instruction 113-1. The posters must be posted in a way the program participants are able to read the poster.
SFAs needing And Justice for All posters please contact OKDHS School Nutrition Programs.
Refer to chapter 3 for more guidance on Civil Rights.
Local Wellness Policy
USDA memo SP24-2017 specifies a School Food Authorities (SFA) that operates only the Special Milk Program (SMP) is not required to have a local school wellness policy.
Food Safety
SFAs are required to implement a HACCP-Food Safety plan as it pertains to all milk sold and claimed on campus. Refer to Chapter 10 for an overview of the requirements of a food safety program. OKDHS School Nutrition Programs will provide a prototype upon request.
For additional information about the Special Milk Program, contact the OKDHS School Nutrition Programs.
Chapter 14 Resource List
The resources listed in table 6.1 are available upon request to Oklahoma Human Services School Nutrition Programs by email at AFS.School.Nutrition.Programs@okdhs.org.
Table 6.1: Chapter 14 Resources |
|
Prototype Code of Conduct |
Prototype Procurement Plan |
The resources listed below in table 6.2 are available online.
Table 6.2: Chapter 14 Online Resources |
|
USDA Special Milk Program: |
USDA Reimbursement Rates |
