We have received several questions concerning the use of vending machines and how revenues should be reported to schools.

A school food authority (SFA) has the authority to enter into a contract with a food service management company (FSMC). As a result of the contract the FSMC agrees to provide breakfast, lunch and a la carte service to the SFA. How the a la carte service is provided to children and adults in the SFA is determined by the SFA. A la carte sales can take place on the line where students receive their meal, at a separate service line or in vending machines. Vending machines are merely a distribution mechanism used to merchandize a la carte sales in the SFA. All revenues derived from a la carte sales must accrue to the SFA. Any vending operation should provide for a verifiable audit of items sold and revenues received. Sales must be deposited into the SFA school lunch account as a la carte sales, subject to the agreed upon conversion factor. The conversion factor is used to convert a la carte sales into equivalent meals and equivalent meals are billed by the FSMC at the current bid price. Be sure your contract reflects this policy.

Please contact Sharon M. Smith by email at ssmith9@mail.nysed.gov or by phone at 518-473-1525 if you have any questions.