Educate All Students: Larry Miller's Blog

June 24, 2011

Companies Running School Cafeterias Under Eye of USDA

Filed under: Privatization,School Finance — millerlf @ 5:01 pm

The U.S. Department of Agriculture’s watchdog arm plans to look closely at whether the food-service-management companies running many school cafeterias are passing along all the discounts and rebates they receive from their suppliers to the districts that hire them.

The audit will begin in August, said Alison Decker, a lawyer in the USDA’s office of inspector general. It was triggered in part by a settlement between the New York state attorney general and Sodexo, one of several large companies in the business of running school cafeterias. Last July, Sodexo, a French company with its U.S. headquarters in Gaithersburg, Md., agreed to pay $20 million to resolve allegations that it had over charged 21 school districts and the State University of New York system for some of the food provided to students.

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