State Administrative Expenses for Child Nutrition (10.560)

Program

10.560 State Administrative Expenses for Child Nutrition

Federal Agency

Agency: Department of Agriculture
Office: Food and Nutrition Service

Authorization

Child Nutrition Act of 1966, as amended, 42 U.S.C. 1776, 1779.

Program Number

10.560

Last Known Status

Active

Objectives

To provide each State agency with funds for its administrative expenses in supervising and giving technical assistance to local schools, school districts and institutions in their conduct of Child Nutrition Programs. State agencies that administer the distribution of USDA donated commodities to schools or child or adult care institutions are also provided with State Administrative Expense (SAE) funds.

Types of Assistance

FORMULA GRANTS

Uses and Use Restrictions

SAE funds must be used for purposes specified in the legislation, consistent with the cost principles and constraints on allowable and unallowable costs, and indirect cost rates as prescribed in OMB Circular No. A-87. These funds may be used, under certain conditions, for the procurement of supplies, equipment, and services.

Eligibility Requirements

Applicant Eligibility

State agencies responsible for the conduct of Child Nutrition Programs, and agencies responsible for the distribution of USDA donated commodities to schools, and/or child or adult care institutions, including agencies in the U.S. Territories.

Beneficiary Eligibility

Credentials/Documentation

Costs are to be determined and documented in accordance with agency regulations (7 CFR 235) and USDA Uniform Federal Assistance Regulations (7 CFR Parts 3015 or 3016 and 3019). OMB Circular No. A-87 applies to this program.

Application and Award Process

Preapplication Coordination

Preapplication coordination is required. Environmental impact information is not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. The State agency enters into a written agreement with the Food and Nutrition Service (FNS) on a form prescribed by the FNS. The standard application forms as furnished by the Federal agency must be used for this program. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure

Release of funds to a State agency is contingent upon receipt and approval of their plan for disbursement of SAE funds. A State agency must submit an initial Plan in fiscal year 1997 and their estimated funding needs for the duration of fiscal year 1997. Thereafter, in accordance with Public Law 104-193 which deleted the requirement for an annual plan unless there are substantive changes, a State agency would only submit revisions to the initial plan.

Deadlines

May 01, 2010 Data on additional funds needed or funds not needed and to be returned as applicable, are due by May 1 of each year.

Range of Approval/Disapproval Time

Not Applicable.

Appeals

Not Applicable.

Renewals

Annually.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: For the National School Lunch Program, the School Breakfast Program, and the Special Milk Program, funds are allocated on the basis of an amount equal to one percent of the total funds used in the State for these programs during the second preceding year based on FNS program and fiscal data. However, no State receives less than $200,000 or the amount it received in fiscal year 1981, whichever is larger. For the Child and Adult Care Food Program, a sliding grant is made based on FNS program and fiscal data. In addition, the Secretary has discretionary authority to provide funds to States for program improvement, based on FNS program and fiscal data. The authorizing legislation which establishes eligibility for SAE funds is the Child Nutrition Act of 1966, as amended, Section 7 (42 U.S.C. 1776). This program has a State Funding Requirement (SFR). See funding agency for details. Any reduction of funds from State sources below the fiscal year 1977 level will result in a withdrawal of Federal funds under this grant.

Matching requirements are not applicable to this program.

MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Funded each fiscal year during the period covered by the agreement. A State agency may carry over up to twenty percent of SAE funds allocated to it for obligation and expenditure during the succeeding fiscal year. Method of awarding/releasing assistance: by letter of credit.

Post Assistance Requirements

Reports

Each State agency shall report information on the use of SAE funds. Cash reports are not applicable. Progress reports are not applicable. Each State agency shall submit quarterly financial status information on SAE funds on forms provided by FNS and will continue to report information on the use of SAE funds, after the end of the fiscal year to which they pertain, until all unpaid obligations have been liquidated. Performance monitoring is not applicable.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Audits may be conducted less frequently under conditions specified in A-133.

Records

Each State agency shall keep records on administrative expenses conforming with the applicable SAE plan and shall maintain current accounting records of SAE funds that shall adequately identify fund authorizations, obligations, unobligated balances, assets, liabilities, outlays, and income.

Program Accomplishments

Fiscal Year 2008: The availability of SAE funds has enabled State agencies to be more effective in meeting their administrative responsibilities under the National School Lunch, School Breakfast, Special Milk, Child and Adult Care Food Program, and Food Distribution Program. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Financial Information

Account Identification

12-3539-0-1-605.

Obligations

(Formula Grants) FY 08 $174,134,000; FY 09 est $178,994,000; FY 10 est $193,268,000

Range and Average of Financial Assistance

From $332,98 to 22,708,344; $3,559,765.

Regulations, Guidelines and Literature

Regulations 7 CFR Part 235, "State Administrative Expense Funds."

Related Programs

10.553 School Breakfast Program; 10.555 National School Lunch Program; 10.556 Special Milk Program for Children; 10.558 Child and Adult Care Food Program; 10.559 Summer Food Service Program for Children

Information Contacts

Regional or Local Office

None. See Appendix IV of the Catalog.

Headquarters Office

Cynthia Long 3101 Park Center Drive Room 640, Alexandria, Virginia 22302 Phone: 703-305-2590

Web Site Address

http://www.fns.usda.gov/cnd

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Not Applicable.