August, 2005

ESTABLISHING A MEAL CHARGE POLICY

    We frequently receive questions from parents as well as school food service directors regarding charge policies.  The following information should help you establish a policy that will comply with current regulations.

    Regulations allow schools that participate in Child Nutrition Programs to have a system in place for students to charge meals.  The decision to implement such a system rests at a local level, i.e., the governing body of the school, school board, etc.  If you do not have an official policy, cashiers in each of your buildings will establish one that could get you in trouble!

    When the decision is made to allow charges, a policy should be established (and parents should be notified of the policy), which addresses:

1. What can be charged;
2. The limit (if any) on the number of charges allowed per student.  You must allow a minimum of three charges;
3. The system used for identifying and recording all charge meals;
4. The system used for collecting repayments;
5. Communication of the policy to parents and students.

    If left unregulated, charge meals can accumulate and cause an unwarranted financial burden on the school lunch account.

Denying Meals

    A student who has abused an established charge policy can be refused a meal.  Such a refusal is not considered to be in violation of the Child Nutrition Act of 1966, as amended, or the National School Lunch Act.  However, before denying any student a meal, school food authorities (SFAs) should carefully consider the negative consequences of such an action.  Be sure you are not denying meals to very young children or children with disabilities.  It is important to remember that the basis for denial of a meal to any child is the presence of a board policy that has been provided to every family in writing, and followed up in writing to the parent prior to the actual denial of the meal.

Claiming Charged Meals

    Care must be taken to maintain a system for accounting for charged meals that follows State guidelines.  These guidelines are:

1. All categories of paying students (full price and reduced price) must be allowed to charge meals according to the Board's prescribed policy.
2. Charged meals must be counted and claimed for reimbursement on the day the student charged (received) the meal, not the day the charge is paid back.
3. When charges are paid, these monies are not to be considered "a la carte" transactions.  A section on the daily cash report or deposit summary should be provided which identifies "charges paid."  An audit trail should be established that identifies the monies for charges paid as "Sale of Meals to Children" for ST-3 or Analysis of Cash Resources reporting purposes.