5.2 Details of managing canteen undertakings

5.2.1 The canteen is operated by private enterprise under the terms of a management agreement.

When it is agreed to operate the canteen through private contract. It is recommended that the School:

seek advice from the coordinator of the department of education procurement services
use a public process to appoint an operator
reserve the right to have input into the menu to ensure that only nutritious products are made available to students and staff.

Upon acceptance of a response, the school will need to take the following action:

have the selected operator and the principal sign the agreement detailing conditions
lodge the agreement in a secure place.

5.2.2 The canteen is operated by an incorporated school association or an incorporated parents and friends group under the terms of a management agreement. (This option may include the use of volunteers.)

In this option the school association is totally responsible for the operation of the canteen and its policies. After undertaking a detailed cost-analysis of the viability of the school association managing a canteen undertaking – either on a cost neutral or profit basis – the chairperson of the school association and the principal must sign an appropriate management agreement. The agreement should be lodged in a secure place.

The following details some specific issues relating to this model:

Canteen staff. The school association (also refers to parents and friends) is totally responsible for the employment, remuneration (including provision for all leave, superannuation and taxation) and dismissal of staff in accordance with the Restaurant Keepers Award, P058, made under the Industrial Relations Act, 1984.
The school association cannot utilise any school staff whilst in the course of their employment under the State Service Act, 2000 to support its canteen operation.

This option may use volunteer assistants. Volunteers will:

undergo a Good Character Check
be recorded as such by the Principal in an official log book maintained by the school
not receive any payment in cash (honoraria) or kind at any time
be reimbursed for actual non-salary costs incurred in the course of their duty but verification must be supplied
covered by departmental workers compensation and public liability insurance provided they sign the volunteers book in schools.

Canteen finances. The school association is responsible for the overall management of the canteen. It is responsible for budgeting and keeping up-to-date financial records. A bank account should be opened to support the canteen that is completely separate from any account managed by the school itself. The bank account must be held in the name of the school association and related receipts and expenditure should not be included in financial reports to the department.
All transactions have to be completely separate: i.e., schools are not permitted to pay canteen accounts, bank canteen monies or pay staff (either directly from canteen funds or indirectly from school funds). This applies to administrative matters such as banking, taxation receipts, the payment of canteen employees and the control of financial records.

Arrangements will need to be made for an audit of accounts by an eligible person on an annual basis. The department’s internal audit section will not conduct an audit of these accounts.

Insurance. The school association must ensure that its operations are covered by appropriate insurance and that it is an incorporated body.Insurance will include workers compensation cover for employees and insurance for product liability, public liability and equipment.

Volunteer assistants are covered by departmental insurance policies.

Management agreement and profits. The management agreement between the school association and principal should clearly state how any profits are to be administered and distributed. The following two options are available for the distribution of profits:

The school association pays profits to the school for inclusion in the annual school budget process and for expenditure in accordance with the priorities established by the school and its community in the school charter and school plans.
The school association pays profits to the school, but they are not included in the annual school budget process. The school and school association determine the use of profits, at an appropriate time each year.

Since the money is raised from the students and parents of the school, the agreement must not allow profits to be spent on activities which do not benefit the students of the school. Either of the above options will ensure that the school association has a proper say in the distribution of profits. If the school and school association choose option 1, then it is essential that the school association be directly involved in the establishment of the school's priorities through the school charter and school plans.

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5.2.3 If school operates the canteen in accordance with school resource package policies. (This option may include the use of volunteers.)

This option provides for the canteen to be operated under the control of the principal.

Canteen staff. The principal may employ staff specifically to undertake canteen duties, delegate canteen duties to existing school staff members, or voluntary assistants.

Where a school decides to employ staff specifically to undertake canteen duties it should follow the same procedures prescribed for all school resource package-funded employees. These employees must be paid in accordance with rates prescribed for canteen staff, not as teacher aides or utility officers. Appropriate rates will be circulated each year as an amendment to the School Resource Package Handbook. Volunteers must be recorded as such by the principal in an official log maintained by the school.
Volunteers may not receive any payment in cash (honoraria^[1]) or kind at any time for their duties. Volunteers may be reimbursed for actual non-salary costs incurred in the course of their duties if individually itemised on an account, invoice or written statement of claim. Volunteers are covered by departmental workers compensation and public liability insurance policies.

Insurance. Employees as employees under the State Service Act,2000 and subject to the exclusive direction of the principal or his or her delegate will be covered by the department’s workers compensation policies.

Volunteers are also covered by departmental workers compensation and public liability insurance policies as long as they fulfil the provisions above relating to volunteer assistants for this model.

5.2.4 Incorporation

School associations desiring information concerning the requirements for incorporation should refer to the School Association in Tasmania website.

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5.2.5 Food Safety Requirements

Whichever management model you adopt, your school canteen will be considered a food business in accordance with the Food Act 2003 (Tasmania) and the Australia New Zealand Food Standards Code. This means that your budget will have to include costs associated with compliance with this legislation.

The part of the Australia New Zealand Food Standards Code concerned with food safety is Chapter 3, known as the Food Safety Standards. This document sets out minimum requirements in terms of food safety practices and food handler training in addition to premises and equipment requirements. It is advised that you liaise closely with your local council Environmental Health Officer to ensure you comply, and to plan improvement strategies in line with the constraints of your budgets. Compliance with these standards is not optional and it is important to ensure the safety of your children.

Payments made to volunteers may jeopardise insurance coverage by the department for workers compensation etc.

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