The settlement with Compass Group USA Inc. requires that it repay almost $3 million to the schools for vendor discounts that by law should have been passed on, Attorney General Eric Schneiderman said. The state is expected to get about $15 million from damages and penalties under New York's False Claims Act.

"Compass improperly profited by overcharging New York's taxpayers and shortchanging our schools," Mr. Schneiderman said. "There are no excuses for this kind of misconduct."

Compass, which staffs and supplies food services at schools like Manhattan Day School and Schenectady City School District through its subsidiary, Chartwells, is headquartered in the United Kingdom and is the largest food service contractor in the world


Read more: http://www.crainsnewyork.com/article/20120919/EDUCATION/120919881#ixzz26xuyMAGu

Genetically modified foods.

So my overpriced taxes are going to a British company? Blimey!!!

Quoted from Parent

So my overpriced taxes are going to a British company? Blimey!!!

Why not? That's where your electric bill goes.

Free lunches for all  

So whatta think, school taxes go down next year lol.  

What is sad is that we only have ourselves to blame for jobs going overseas.  We made the tax laws that encouraged it.  We developed the school system that pumps out young adults who are rewarded regardless of success.  We major in the minor and minor in the major.  

Quoted from TakingItBack

What is sad is that we only have ourselves to blame for jobs going overseas.  We made the tax laws that encouraged it.  We developed the school system that pumps out young adults who are rewarded regardless of success.  We major in the minor and minor in the major.  

And, to make matters worse, Americans elected a president, with both houses of the same ruling party (law makers) who, for 4 years (2 with president and lawmakeers in the same party), failed to change the tax code to STOP these loopholes  They didn't even PROPOSE a meaningful change - for fear of alienating their base (bankers, wall street bigshots, billionaires) - and folks like John (is that yacht-tax paid yet) Kerry, John Murtha, Barney, Elmo and the rest of the gang from Sesame Street.

But, it's more convenient to blame the other party I guess, when your record of inaction is too reprehensible.  It's easier to say "we'll do it if you give us 4 more years".  Nothing will change, it never does.

More incompetence.  It took them 7 years to figure it out.  Also again leave it to NYState the have the most confusing policy in the country.  


(AP) - An $18 million settlement has been reached between New York and a food company that serves 39 school and public lunch programs statewide after an investigation into seven years of overcharges.

The settlement with Compass Group USA Inc. requires that it repay almost $3 million to the schools for vendor discounts that by law should have been passed on, Attorney General Eric Schneiderman said. The state is expected to get about $15 million from damages and penalties under New York's False Claims Act.

"Compass improperly profited by overcharging New York's taxpayers and shortchanging our schools," Mr. Schneiderman said. "There are no excuses for this kind of misconduct."

Compass, which staffs and supplies food services at schools like Manhattan Day School and Schenectady City School District through its subsidiary, Chartwells, is headquartered in the United Kingdom and is the largest food service contractor in the world. A publicly held company, it has contracts with major sports and cultural venues as well as corporate institutions. It also owns New York City-based Restaurant Associates, a catering provider that operates restaurants in some of the top cultural venues in the city, including The Solomon R. Guggenheim Museum, Alice Tully Hall at Lincoln Center and the Metropolitan Museum of Art.

The company issued a statement attributing the underpayments to "misinterpretation of the New York contracts" which caused the company "to neglect to complete proper reconciliation of operating costs to the K-12 schools." The company also said, "It is important to note that the New York K-12 contracts are distinct and unique to New York State, and are believed to be the only one of their kind in the United States."
It's the largest recovery since the anti-fraud statute for state and local governments was amended in 2007, enhancing penalties and whistle-blower protections, according to the attorney general's office. Mr. Schneiderman, then a state senator, sponsored the measure, which has been used in probes of contractors. The Compass settlement covers 2003 to 2010.

Part of an ongoing investigation by the attorney general's Taxpayer Protection Bureau of food management companies and food distributors doing business with the state, it follows last year's $1.6 million settlement with the Whitsons companies.

Compass will be required over the next two years to make quarterly disclosures of the settlement to the 39 customers and provide detailed semi-annual reports of its sales and rebating practices to the Taxpayer Protection Bureau. The company also agreed to take steps to comply early with the enhanced nutritional standards passed by Congress in January, including partnering with local suppliers of fresh foods.

The Taxpayer Protection Bureau was established by Mr. Schneiderman last year to help with fraud recoveries from contractors, who collect about $13 billion annually from state taxpayers and billions more in local government contracts.

Lisa Fickenscher contributed to this article.

©Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



Read more: http://www.crainsnewyork.com/article/20120919/EDUCATION/120919881#ixzz2716SfzL8

Quoted from TakingItBack

What is sad is that we only have ourselves to blame for jobs going overseas.  We made the tax laws that encouraged it.  We developed the school system that pumps out young adults who are rewarded regardless of success.  We major in the minor and minor in the major.  

In the case of Niagara Mohawk/National Grid, that is not a case of jobs being shipped overseas, it is a case of the government allowing a very important part of the United States infrastructure to be sold to a foreign interest in 2002.

The company involved is very shady to say the least.

Here is an article from last year describing why a lot of the food served is garbage, and how schools are given kick backs to serve it.

http://www.theslowcook.com/2011/10/18/processed-food-rebates-dominate-school-cafeterias/