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Catalog of Federal Domestic Assistance

Program Descriptions

10.560:  State Administrative Expenses for Child Nutrition

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 funds (SAE).

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

10.560 ELIGIBILITY REQUIREMENTS:

Credentials/Documentation:  Costs are to be determined and documented in accordance with agency regulations (7 CFR 235) and OMB Circular No. A-87.

10.560 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  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:  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 (SA) is contingent upon receipt and approval of their Plan for disbursement of SAE funds. An SA 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, an SA would only submit revisions to the initial Plan.

Deadlines:  In accordance with Public Law 104-193, a SA must submit a Plan only when there are significant changes to the initial Plan submitted in fiscal year 1997 which was due by August 15, 1996. 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.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  From $225,692 to $13,993,443; $2,111,308.

10.560 RELATED PROGRAMS:

• 10.550 Food Distribution;
• 10.553 School Breakfast Program;
• 10.555 National School Lunch Program (NSLP);
• 10.556 Special Milk Program for Children;
• 10.558 Child and Adult Care Food Program.

10.560 PROGRAM ACCOMPLISHMENTS:

10.560 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  FOOD AND NUTRITION SERVICE, (DEPARTMENT OF AGRICULTURE )

Type of Assistance:  Formula Grants.

Obligations:  (Grants) FY 99 $114,010,640; FY 00 est $117,839,000; and FY 01 est $127,321,000.

Budget Account Number:  12-3539-0-1-605.

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

Regulations, Guidelines, and Literature:  Regulations 7 CFR Part 235, "State Administrative Expense Funds."

10.560 INFO CONTACTS:

Regional or Local Office:  See Appendix IV of the Catalog.

Headquarters Office:  Director, Child Nutrition Division, Food and Nutrition Service, Department of Agriculture, Alexandria, VA 22302. Phone: (703) 305-2590. Contact: Stanley C. Garnett, Director. (Home Page)

(See Appendix IV for more contact info.)

10.560 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  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. No State receives less than $100,000 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 maintenance of effort (MOE) requirement. 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.

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 20 percent of SAE funds allocated to it for obligation and expenditure during the succeeding fiscal year.

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.

10.560 POST ASSISTANCE REQUIREMENTS:

Reports:  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.

Audits:  In accordance with the provisions of OMB Circular No. A-133, "Audits of States, Local Governments, and Nonprofit Organizations," State governments, that expended $300,000 or more under Federal awards within any fiscal year shall have either a single audit or (in certain cases) a program specific audit made for that year. 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.